EX-99.2 3 ex992ifs6302019.htm EXHIBIT 99.2

Exhibit

INVESTOR FINANCIAL SUPPLEMENT

June 30, 2019

Effective upon the closing of the acquisition of The Navigators Group, Inc. ("Navigators Group") on May 23, 2019, the Company realigned the Commercial Lines segment lines of business among small commercial, middle & large commercial, and global specialty (formerly small commercial, middle market and specialty commercial) to reflect the Company's management reporting structure. The realignment included moving a portion of excess and surplus lines from small commercial to global specialty, moving livestock business from middle market to global specialty and moving national accounts and captive programs from specialty commercial to middle & large commercial. In addition, financial products and bond business, previously included in specialty commercial, are now included in global specialty.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

		As of July 30, 2019
Address:
One Hartford Plaza				A.M. Best		Standard & Poor’s		Moody’s
Hartford, CT 06155		Insurance Financial Strength Ratings:
		Hartford Fire Insurance Company		A+		A+		A1
		Hartford Life and Accident Insurance Company		A		A+		A2
		Maxum Casualty Insurance Company		A+		Not Rated "NR"		NR
		Maxum Indemnity Company		A+		NR		NR
		Navigators Insurance Company		A		A		NR
		Navigators Specialty Insurance Company		A		A		NR
		Navigators International Insurance Company Ltd.		A		A		NR
		Assurances Continentales – Continentale Verzekeringen NV		NR		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:		- Maxum Casualty Insurance Company and Maxum Indemnity Company ratings are on stable outlook at A.M. Best
http://www.thehartford.com		- Navigators Insurance Company and Navigators Specialty Insurance Company, are on positive outlook at A.M. Best and on stable outlook at Standard and Poor's
		- Navigators International Insurance Co. Ltd. is on stable outlook at A.M. Best and Standard and Poor's
		- Assurances Continentales - Continentale Verzekeringen, a Belgium domiciled insurance subsidiary, is on stable outlook at Standard and Poor's
		Other Ratings:
		The Hartford Financial Services Group, Inc.:
		Senior debt		a-		BBB+		Baa1
Contacts:		Commercial paper		AMB-1		A-2		P-2
Sabra Purtill		Preferred stock		bbb		BBB-		Baa3
Senior Vice President		Junior subordinated debentures		bbb		BBB-		Baa2
Investor Relations & Treasurer
Phone (860) 547-8691		The Navigators Group, Inc.:
		Senior debt		bbb+		BBB		NR
Susan Spivak Bernstein
Vice President		- Hartford Financial Services Group, Inc. senior debt and junior subordinated debentures are on stable outlook at A.M. Best, Standard and Poor’s, and Moody's.
Investor Relations		- The Navigators Group, Inc. senior debt has a positive outlook at A.M. best and stable outlook at Standard and Poor’s.
Phone (860) 547-6233
		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 PS G", respectively.

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

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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTOR FINANCIAL SUPPLEMENT

TABLE OF CONTENTS

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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATED FINANCIAL RESULTS

	THREE MONTHS ENDED																			SIX MONTHS ENDED
	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Jun 30 2019			Jun 30 2018
HIGHLIGHTS
Income from continuing operations, net of tax, available to common stockholders [1]	$	372		$	625		$	190		$	427		$	434		$	428			$	997		$	862
Net income	$	372		$	630		$	196		$	432		$	582		$	597			$	1,002		$	1,179
Net income available to common stockholders	$	372		$	625		$	190		$	432		$	582		$	597			$	997		$	1,179
Core earnings *	$	485		$	507		$	284		$	418		$	412		$	461			$	992		$	873
Total revenues	$	5,092		$	4,940		$	4,633		$	4,842		$	4,789		$	4,691			$	10,032		$	9,480
Total assets	$69,472			$63,324			$62,307			$61,437			$60,775			$216,666
PER SHARE AND SHARES DATA
Basic earnings per common share
Income from continuing operations, net of tax, available to common stockholders [1]	$	1.03		$	1.74		$	0.53		$	1.19		$	1.21		$	1.20			$	2.76		$	2.41
Net income available to common stockholders	$	1.03		$	1.74		$	0.53		$	1.20		$	1.62		$	1.67			$	2.76		$	3.29
Core earnings*	$	1.34		$	1.41		$	0.79		$	1.17		$	1.15		$	1.29			$	2.75		$	2.44
Diluted earnings per common share
Income from continuing operations, net of tax, available to common stockholders [1]	$	1.02		$	1.71		$	0.52		$	1.17		$	1.19		$	1.18			$	2.73		$	2.37
Net income available to common stockholders	$	1.02		$	1.71		$	0.52		$	1.19		$	1.60		$	1.64			$	2.73		$	3.24
Core earnings*	$	1.33		$	1.39		$	0.78		$	1.15		$	1.13		$	1.27			$	2.72		$	2.40
Weighted average common shares outstanding (basic)	361.4			360.0			359.1			358.6			358.3			357.5				360.7			357.9
Dilutive effect of stock compensation	3.2			3.3			3.2			3.6			4.0			4.4				3.3			4.2
Dilutive effect of warrants [2]	0.5			1.4			1.7			1.9			1.9			2.0				0.9			2.0
Weighted average common shares outstanding and dilutive potential common shares (diluted)	365.1			364.7			364.0			364.1			364.2			363.9				364.9			364.1
Common shares outstanding	361.6			360.9			359.2			358.7			358.4			358.1
Book value per common share	$	41.37		$	38.81		$	35.54		$	35.49		$	35.01		$	36.70
Per common share impact of accumulated other comprehensive income [3]	$	(0.54	)	$	(2.45	)	$	(4.40	)	$	(4.23	)	$	(3.77	)	$	(0.67	)
Book value per common share (excluding AOCI)*	$	41.91		$	41.26		$	39.94		$	39.72		$	38.78		$	37.37
Book value per diluted share	$	41.00		$	38.36		$	35.06		$	34.95		$	34.44		$	36.06
Per diluted share impact of AOCI	$	(0.55	)	$	(2.43	)	$	(4.34	)	$	(4.17	)	$	(3.71	)	$	(0.65	)
Book value per diluted share (excluding AOCI)*	$	41.55		$	40.79		$	39.40		$	39.12		$	38.15		$	36.71
Common shares outstanding and dilutive potential common shares	364.8			365.1			364.1			364.2			364.3			364.5
RETURN ON COMMON STOCKHOLDER'S EQUITY ("ROE") [4]
Net income (loss) available to common stockholders' ROE ("Net income (loss) ROE")	11.8		%	13.5		%	13.7		%	(14.0		%)	(15.4		%)	(19.3		%)
Core earnings ROE*	11.7		%	11.5		%	11.6		%	10.3		%	8.4		%	7.8		%

[1] Income from continuing operations, net of tax, available to common stockholders includes the impact of preferred stock dividends.

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

[3] Accumulated other comprehensive income ("AOCI") represents net of tax unrealized gain (loss) on available-for-sale securities, other than temporary impairment losses recognized in AOCI, net gain (loss) on cash-flow hedging instruments, foreign currency translation adjustments and pension and other postretirement adjustments.

[4] For reconciliation of Net income (loss) ROE to Core earnings ROE, see Appendix, page 33.

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

1

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

	THREE MONTHS ENDED																			SIX MONTHS ENDED
	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Jun 30 2019			Jun 30 2018
Earned premiums	$	4,166		$	3,940		$	3,997		$	3,987		$	3,958		$	3,927			$	8,106		$	7,885
Fee income	326			314			319			344			327			323				640			650
Net investment income	488			470			457			444			428			451				958			879
Realized capital gains (losses):
Total other-than-temporary impairment (“OTTI”) losses	—			(4		)	(1		)	(4		)	—			(2		)		(4		)	(2		)
OTTI losses recognized in other comprehensive income	—			2			1			3			—			2				2			2
Net OTTI losses recognized in earnings	—			(2		)	—			(1		)	—			—				(2		)	—
Other net realized capital gains (losses)	80			165			(172		)	39			52			(30		)		245			22
Total net realized capital gains (losses)	80			163			(172		)	38			52			(30		)		243			22
Other revenues	32			53			32			29			24			20				85			44
Total revenues	5,092			4,940			4,633			4,842			4,789			4,691				10,032			9,480
Benefits, losses and loss adjustment expenses	2,934			2,685			2,946			2,786			2,738			2,695				5,619			5,433
Amortization of deferred acquisition costs ("DAC")	392			355			350			348			344			342				747			686
Insurance operating costs and other expenses	1,141			1,048			1,086			1,091			1,067			1,037				2,189			2,104
Loss on extinguishment of debt	—			—			—			—			6			—				—			6
Loss on reinsurance transaction [1]	91			—			—			—			—			—				91			—
Interest expense	63			64			70			69			79			80				127			159
Amortization of other intangible assets	15			13			14			18			18			18				28			36
Total benefits, losses and expenses	4,636			4,165			4,466			4,312			4,252			4,172				8,801			8,424
Income from continuing operations, before tax	456			775			167			530			537			519				1,231			1,056
Income tax expense (benefit)	84			145			(29		)	103			103			91				229			194
Income from continuing operations, net of tax	372			630			196			427			434			428				1,002			862
Income from discontinued operations, net of tax	—			—			—			5			148			169				—			317
Net income	372			630			196			432			582			597				1,002			1,179
Preferred stock dividends [2]	—			5			6			—			—			—				5			—
Net income available to common stockholders	372			625			190			432			582			597				997			1,179
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax	(79		)	(160		)	175			(37		)	(50		)	30				(239		)	(20		)
Loss on extinguishment of debt, before tax	—			—			—			—			6			—				—			6
Loss on reinsurance transaction, before tax [1]	91			—			—			—			—			—				91			—
Integration and transaction costs associated with acquired business, before tax [3]	31			10			12			12			11			12				41			23
Change in loss reserves upon acquisition of a business, before tax [4]	97			—			—			—			—			—				97			—
Income tax expense (benefit) [5]	(27		)	32			(93		)	16			11			(9		)		5			2
Income from discontinued operations, net of tax	—			—			—			(5		)	(148		)	(169		)		—			(317		)
Core earnings	$	485		$	507		$	284		$	418		$	412		$	461			$	992		$	873

[1] Immediately after closing on the acquisition of Navigators Group in May 2019, the Company purchased an adverse development cover ("ADC") from National Indemnity Company ("NICO") on behalf of Navigators Insurance Company and certain of its affiliates ("Navigators Insurers") for a ceded premium of $91. The ADC covers $300 of adverse development on 2018 and prior accident year reserves (subject to limited exceptions) that attaches at $100 above Navigators Insurers recorded net reserves as of December 31, 2018.

[2] No preferred stock dividends were declared in second quarter 2019. Preferred stock dividends of $5 were declared on July 18, 2019 and, therefore will be recognized in third quarter 2019. Fourth quarter 2019 will have two quarterly preferred stock dividend declarations.

[3] The three and six month periods ended June 30, 2019 included Navigators Group acquisition transaction expenses of $15, Navigators integration costs of $6 and integration costs related to the 2017 acquisition of Aetna's group benefits business of $10. Periods prior to the second quarter of 2019 represent integration costs related to the 2017 acquisition of Aetna's group benefits business.

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

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

2

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

OPERATING RESULTS BY SEGMENT

	THREE MONTHS ENDED																			SIX MONTHS ENDED
	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Jun 30 2019			Jun 30 2018
Net income (loss):
Commercial Lines	$	191		$	363		$	253		$	289		$	372		$	298			$	554		$	670
Personal Lines	62			96			(178		)	51			6			89				158			95
P&C Other Operations	11			23			(16		)	9			5			17				34			22
Property & Casualty ("P&C")	264			482			59			349			383			404				746			787
Group Benefits	113			118			113			77			96			54				231			150
Hartford Funds	38			30			36			41			37			34				68			71
Sub-total	415			630			208			467			516			492				1,045			1,008
Corporate [1]	(43		)	—			(12		)	(35		)	66			105				(43		)	171
Net income	372			630			196			432			582			597				1,002			1,179
Preferred stock dividends	—			5			6			—			—			—				5			—
Net income available to common stockholders	$	372		$	625		$	190		$	432		$	582		$	597			$	997		$	1,179
Core earnings (losses):
Commercial Lines	$	304		$	274		$	337		$	265		$	341		$	302			$	578		$	643
Personal Lines	55			82			(166		)	47			2			89				137			91
P&C Other Operations	8			16			(15		)	8			3			17				24			20
P&C	367			372			156			320			346			408				739			754
Group Benefits	115			122			136			102			104			85				237			189
Hartford Funds	38			28			38			41			38			34				66			72
Sub-total	520			522			330			463			488			527				1,042			1,015
Corporate	(35		)	(15		)	(46		)	(45		)	(76		)	(66		)		(50		)	(142		)
Core earnings	$	485		$	507		$	284		$	418		$	412		$	461			$	992		$	873

[1] For the first three quarters of 2018, includes income (loss) from discontinued operations from the life and annuity business sold in May 2018. For the three months ended June 30, 2019, March 31, 2019 and December 31, 2018, includes $3, $28, and $6, respectively, of before tax income from the Company's retained 9.7% equity interest in the limited partnership that acquired the life and annuity business sold in May 2018.

3

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATING BALANCE SHEETS

	PROPERTY & CASUALTY							GROUP BENEFITS							HARTFORD FUNDS							CORPORATE							CONSOLIDATED
	Jun 30 2019			Dec 31 2018				Jun 30 2019			Dec 31 2018				Jun 30 2019			Dec 31 2018				Jun 30 2019			Dec 31 2018				Jun 30 2019			Dec 31 2018
Investments
Fixed maturities, available-for-sale, at fair value	$	30,200		$	24,763			$	10,393		$	9,876			$	35		$	28			$	538		$	985			$	41,166		$	35,652
Fixed maturities, at fair value using the fair value option	43			16				5			6				—			—				1			—				49			22
Equity securities, at fair value	1,222			920				76			64				38			51				197			179				1,533			1,214
Mortgage loans	2,546			2,603				1,066			1,101				—			—				—			—				3,612			3,704
Limited partnerships and other alternative investments	1,448			1,458				286			265				—			—				—			—				1,734			1,723
Other investments	134			78				7			10				36			—				134			104				311			192
Short-term investments	1,254			1,081				442			398				178			197				490			2,607				2,364			4,283
Total investments [1]	36,847			30,919				12,275			11,720				287			276				1,360			3,875				50,769			46,790
Cash	207			88				7			12				8			7				4			5				226			112
Restricted cash	51			3				6			6				—			—				—			—				57			9
Premiums receivable and agents’ balances	4,263			3,565				463			430				—			—				—			—				4,726			3,995
Reinsurance recoverables [2]	4,825			3,774				243			251				—			—				326			332				5,394			4,357
DAC	663			612				53			52				6			6				—			—				722			670
Deferred income taxes	(146		)	180				(151		)	(26		)		7			7				905			1,087				615			1,248
Goodwill [3]	781			157				723			723				180			180				229			230				1,913			1,290
Property and equipment, net	1,039			826				94			101				14			—				75			79				1,222			1,006
Other intangible assets [3]	642			87				539			559				10			11				—			—				1,191			657
Other assets	1,417			1,013				280			286				91			96				849			778				2,637			2,173
Total assets	$	50,589		$	41,224			$	14,532		$	14,114			$	603		$	583			$	3,748		$	6,386			$	69,472		$	62,307
Unpaid losses and loss adjustment expenses	$	27,748		$	24,584			$	8,356		$	8,445			$	—		$	—			$	—		$	—			$	36,104		$	33,029
Reserves for future policy benefits [2]	—			—				418			427				—			—				226			215				644			642
Other policyholder funds and benefits payable [2]	—			—				486			455				—			—				304			312				790			767
Unearned premiums	6,794			5,239				38			43				—			—				1			—				6,833			5,282
Debt [4]	283			—				—			—				—			—				4,267			4,678				4,550			4,678
Other liabilities	2,484			1,930				475			516				207			203				2,093			2,159				5,259			4,808
Total liabilities	37,309			31,753				9,773			9,886				207			203				6,891			7,364				54,180			49,206
Common stockholders' equity, excluding AOCI	12,287			9,389				4,388			4,303				396			380				(1,915		)	274				15,156			14,346
Preferred stock	—			—				—			—				—			—				334			334				334			334
AOCI, net of tax	993			82				371			(75		)		—			—				(1,562		)	(1,586		)		(198		)	(1,579		)
Total stockholders' equity	13,280			9,471				4,759			4,228				396			380				(3,143		)	(978		)		15,292			13,101
Total liabilities and equity	$	50,589		$	41,224			$	14,532		$	14,114			$	603		$	583			$	3,748		$	6,386			$	69,472		$	62,307

[1] Includes investments classified as part of Corporate that are not fixed maturities or short-term investments held by the holding company of The Hartford Financial Services Group, Inc. ("HFSG Holding Company") which are principally assets held by Hartford Life and Accident Insurance Company (HLA) that support reserves for run-off structured settlement and terminal funding agreement liabilities. Fixed maturities, cash, and short-term investments held by the HFSG Holding Company were $0.8 billion and $3.4 billion as of June 30, 2019 and December 31, 2018, respectively.

[2] Corporate includes reserves and reinsurance recoverables for run-off structured settlement and terminal funding agreement liabilities.

[3] As of June 30, 2019, Property & Casualty includes $623 of goodwill and $560 ($580 as of the May 23, 2019 acquisition date) of intangible assets related to the May 23, 2019 acquisition of Navigators Group.

[4] Property & Casualty debt as of June 30, 2019 represents 5.75% senior notes, par value $265, acquired as part of the Navigators Group acquisition.

4

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CAPITAL STRUCTURE

	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018
DEBT
Short-term debt	$	500		$	499		$	413		$	413		$	413		$	413
Senior notes	2,961			2,678			3,176			3,174			3,173			3,172
Junior subordinated debentures	1,089			1,089			1,089			1,089			1,089			1,583
Total debt	$	4,550		$	4,266		$	4,678		$	4,676		$	4,675		$	5,168
STOCKHOLDERS’ EQUITY
Common stockholders' equity, excluding AOCI	$	15,156		$	14,891		$	14,346		$	14,248		$	13,899		$	13,382
Preferred stock	334			334			334			—			—			—
AOCI	(198		)	(885		)	(1,579		)	(1,519		)	(1,353		)	(239		)
Total stockholders’ equity	$	15,292		$	14,340		$	13,101		$	12,729		$	12,546		$	13,143
CAPITALIZATION
Total capitalization, including AOCI, net of tax	$	19,842		$	18,606		$	17,779		$	17,405		$	17,221		$	18,311
Total capitalization, excluding AOCI, net of tax	$	20,040		$	19,491		$	19,358		$	18,924		$	18,574		$	18,550
DEBT TO CAPITALIZATION RATIOS
Total debt to capitalization, including AOCI	22.9		%	22.9		%	26.3		%	26.9		%	27.1		%	28.2		%
Total debt to capitalization, excluding AOCI	22.7		%	21.9		%	24.2		%	24.7		%	25.2		%	27.9		%
Total debt and preferred stock to capitalization, including AOCI	24.6		%	24.7		%	28.2		%	26.9		%	27.1		%	28.2		%
Total debt and preferred stock to capitalization, excluding AOCI	24.4		%	23.6		%	25.9		%	24.7		%	25.2		%	27.9		%
Total rating agency adjusted debt to capitalization [1] [2]	26.6		%	25.7		%	29.2		%	29.4		%	29.7		%	29.9		%
FIXED CHARGE COVERAGE RATIOS
Total earnings to total fixed charges [3]	10.1:1			11.9:1			6.4:1			7.6:1			7.4:1			7.1:1

[1] The leverage calculation reflects adjustments related to the Company’s defined benefit plans' unfunded pension liability, the Company's rental expense on operating leases and uncollateralized letters of credit for Lloyd's of London for a total adjustment of $0.9 billion and $1.0 billion as of June 30, 2019 and 2018, 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 from continuing operations before income taxes and total fixed charges (excluding the impact of preferred stock dividends), less undistributed earnings from limited partnerships and other alternative investments. Total fixed charges include interest expense, preferred stock dividends, interest factor attributable to rent expense, capitalized interest and amortization of debt issuance costs.

5

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

STATUTORY CAPITAL TO GAAP STOCKHOLDERS’ EQUITY RECONCILIATION

JUNE 30, 2019

	P&C			GROUP BENEFITS
U.S. statutory net income [1][5]	$	699		$	260
U.S. statutory capital [2][5]	$	9,338		$	2,533
U.S. GAAP adjustments:
DAC	783			53
Non-admitted deferred tax assets [3]	159			172
Deferred taxes [4]	(858		)	(474		)
Goodwill	118			723
Other intangible assets	82			539
Non-admitted assets other than deferred taxes	668			141
Asset valuation and interest maintenance reserve	—			221
Benefit reserves	(54		)	(19		)
Unrealized gains on investments	1,230			520
Other, net	962			350
U.S. GAAP stockholders’ equity of U.S. insurance entities [5]	12,428			4,759
U.S. GAAP stockholders’ equity of international subsidiaries as well as goodwill and other intangible assets related to the acquisition of Navigators Group	852			—
Total U.S. GAAP stockholders’ equity	$	13,280		$	4,759

[1] Statutory net income is for the six months ended June 30, 2019.

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

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

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

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

6

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

	AS OF
	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018
Fixed maturities net unrealized gain	$	1,367		$	703		$	24		$	40		$	211		$	1,349
OTTI losses recognized in AOCI	(3		)	(3		)	(4		)	(4		)	(3		)	(5		)
Net gains (losses) on cash flow hedging instruments	11			—			(5		)	(17		)	(12		)	(24		)
Total net unrealized gain	$	1,375		$	700		$	15		$	19		$	196		$	1,320
Foreign currency translation adjustments	34			31			30			34			33			32
Pension and other postretirement plan adjustments	(1,607		)	(1,616		)	(1,624		)	(1,572		)	(1,582		)	(1,591		)
Total AOCI	$	(198	)	$	(885	)	$	(1,579	)	$	(1,519	)	$	(1,353	)	$	(239	)

7

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PROPERTY & CASUALTY

INCOME STATEMENTS

	THREE MONTHS ENDED																			SIX MONTHS ENDED
	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Jun 30 2019			Jun 30 2018
Written premiums	$	2,902		$	2,720		$	2,554		$	2,605		$	2,591		$	2,658			$	5,622		$	5,249
Change in unearned premium reserve	114			144			(87		)	(29		)	(10		)	88				258			78
Earned premiums	2,788			2,576			2,641			2,634			2,601			2,570				5,364			5,171
Fee income	19			18			18			19			18			19				37			37
Losses and loss adjustment expenses
Current accident year before catastrophes [1]	1,696			1,537			1,595			1,620			1,534			1,537				3,233			3,071
Current accident year catastrophes	138			104			361			169			188			103				242			291
Prior accident year development [1]	35			(11		)	(28		)	(60		)	(47		)	(32		)		24			(79		)
Total losses and loss adjustment expenses	1,869			1,630			1,928			1,729			1,675			1,608				3,499			3,283
Amortization of DAC	375			339			334			332			329			328				714			657
Underwriting expenses	550			495			516			511			495			470				1,045			965
Amortization of other intangible assets	4			3			2			3			2			1				7			3
Dividends to policyholders	6			6			5			8			6			4				12			10
Underwriting gain (loss) [2]*	3			121			(126		)	70			112			178				124			290
Net investment income	348			323			308			311			301			322				671			623
Net realized capital gains (losses)	66			143			(132		)	37			50			(9		)		209			41
Loss on reinsurance transaction [3]	(91		)	—			—			—			—			—				(91		)	—
Net servicing and other income (expense)	(2		)	2			(1		)	7			3			5				—			8
Income before income taxes	324			589			49			425			466			496				913			962
Income tax expense (benefit)	60			107			(10		)	76			83			92				167			175
Net income	264			482			59			349			383			404				746			787
Adjustments to reconcile net income to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax	(65		)	(140		)	134			(36		)	(49		)	8				(205		)	(41		)
Loss on reinsurance transaction, before tax [3]	91			—			—			—			—			—				91			—
Integration costs, before tax	6			1			—			—			—			—				7			—
Change in loss reserves upon acquisition of a business, before tax [1]	97			—			—			—			—			—				97			—
Income tax expense (benefit) [4]	(26		)	29			(37		)	7			12			(4		)		3			8
Core earnings	$	367		$	372		$	156		$	320		$	346		$	408			$	739		$	754
ROE
Net income available to common stockholders [5]	11.6		%	15.2		%	15.1		%	15.5		%	12.7		%	11.9		%
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax	(1.2		%)	(1.2		%)	0.8		%	(1.7		%)	(1.4		%)	(1.4		%)
Loss on reinsurance transaction, before tax [3]	1.0		%	—		%	—		%	—		%	—		%	—		%
Integration and transaction costs associated with an acquired business, before tax	0.1		%	—		%	—		%	—		%	—		%	—		%
Changes in loss reserves upon acquisition of a business, before tax [1]	1.1		%	—		%	—		%	—		%	—		%	—		%
Income tax expense (benefit) [4]	(0.3		%)	0.1		%	(0.3		%)	1.2		%	1.2		%	1.2		%
Impact of AOCI, excluded from core earnings ROE	0.6		%	0.7		%	0.7		%	0.5		%	0.5		%	0.6		%
Core earnings [5]	12.9		%	14.8		%	16.3		%	15.5		%	13.0		%	12.3		%

[1] See [4] on page 2 for impact of Navigators Group acquisition.

[2] Excluding the non-core change in loss reserves upon acquisition of Navigators Group (see [4] on page 2), underwriting gain for the three and six months ended June 30, 2019 is $100 and $221, respectively.

[3] See [1] on page 2 for impact from Navigators Group acquisition.

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

[5] Net income available to common stockholders ROE and Core earnings ROE assume a portion of debt and interest expense and preferred stock and preferred stock dividends accounted for within Corporate are allocated to Property & Casualty. For further information, see Appendix, page 33.

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

8

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PROPERTY & CASUALTY

UNDERWRITING RATIOS AND RESULTS

	THREE MONTHS ENDED													SIX MONTHS ENDED
	Jun 30 2019		Mar 31 2019		Dec 31 2018		Sept 30 2018		Jun 30 2018		Mar 31 2018			Jun 30 2019		Jun 30 2018
UNDERWRITING GAIN (LOSS)	3		121		(126	)	70		112		178			124		290
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1]	60.8		59.7		60.4		61.5		59.0		59.8			60.3		59.4
Current accident year catastrophes	4.9		4.0		13.7		6.4		7.2		4.0			4.5		5.6
Prior accident year development [2][3]	1.3		(0.4	)	(1.1	)	(2.3	)	(1.8	)	(1.2	)		0.4		(1.5	)
Total losses and loss adjustment expenses	67.0		63.3		73.0		65.6		64.4		62.6			65.2		63.5
Expenses [4]	32.6		31.8		31.6		31.4		31.1		30.4			32.2		30.7
Policyholder dividends	0.2		0.2		0.2		0.3		0.2		0.2			0.2		0.2
Combined ratio	99.9		95.3		104.8		97.3		95.7		93.1			97.7		94.4
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development [2]	(6.2	)	(3.6	)	(12.6	)	(4.1	)	(5.4	)	(2.8	)		(4.9	)	(4.1	)
Current accident year change in loss reserves upon acquisition of a business [5]	(1.1	)	—		—		—		—		—			(0.6	)	—
Underlying combined ratio *	92.6		91.7		92.2		93.2		90.3		90.3			92.2		90.3

[1] Includes an increase in loss reserves of $29 upon acquisition of Navigators Group (see [4] on page 2).

[2] Includes an increase in loss reserves of $68 upon acquisition of Navigators Group (see [4] on page 2). This adjustment represents 2.4 points and 1.3 points, respectively, of the combined ratio for the three and six months ended June 30, 2019.

[3] The following table summarizes unfavorable (favorable) prior accident year development.

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

[5] Represents an increase in loss reserves of $29 upon acquisition of Navigators Group (see [4] on page 2).

	THREE MONTHS ENDED																			SIX MONTHS ENDED
	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Jun 30 2019			Jun 30 2018
Auto liability - Commercial Lines	$	2		$	—		$	—		$	(5	)	$	(5	)	$	(5	)		$	2		$	(10	)
Auto liability - Personal Lines	—			(5		)	(8		)	(10		)	—			—				(5		)	—
Homeowners	—			1			(5		)	(7		)	(1		)	(12		)		1			(13		)
Marine	10			—			—			—			—			—				10			—
Professional liability	33			—			—			(20		)	6			2				33			8
Package business	(14		)	5			(10		)	(9		)	(15		)	8				(9		)	(7		)
General liability	37			6			20			4			20			8				43			28
Bond	—			—			2			—			—			—				—			—
Assumed Reinsurance	3			—			—			—			—			—				3			—
Commercial property	(13		)	(2		)	(2		)	2			1			(13		)		(15		)	(12		)
Workers’ compensation	(30		)	(20		)	(67		)	(24		)	(48		)	(25		)		(50		)	(73		)
Workers' compensation discount accretion	9			8			10			10			10			10				17			20
Catastrophes	(14		)	(8		)	(2		)	(13		)	(31		)	(3		)		(22		)	(34		)
Uncollectible reinsurance	—			—			—			11			11			—				—			11
Other reserve re-estimates	12			4			34			1			5			(2		)		16			3
Total prior accident year development [1]	$	35		$	(11	)	$	(28	)	$	(60	)	$	(47	)	$	(32	)		$	24		$	(79	)

[1] The prior accident year reserve increase of $68 related to the Navigators Group acquisition for the three and six months ended June 30, 2019 (see [4] on page 2) represented increases of $34 for general liability, $25 for professional liability, $10 for marine, $3 for assumed reinsurance and $2 for commercial auto liability, partially offset by a reserve decrease of $6 for commercial property.

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

9

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

INCOME STATEMENTS

	THREE MONTHS ENDED																			SIX MONTHS ENDED
	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Jun 30 2019			Jun 30 2018
Written premiums	$	2,078		$	1,949		$	1,800		$	1,751		$	1,734		$	1,851			$	4,027		$	3,585
Change in unearned premium reserve	91			172			(6		)	(34		)	(11		)	140				263			129
Earned premiums	1,987			1,777			1,806			1,785			1,745			1,711				3,764			3,456
Fee income	9			9			8			9			8			9				18			17
Losses and loss adjustment expenses
Current accident year before catastrophes [1]	1,179			1,037			1,034			1,055			977			971				2,216			1,948
Current accident year catastrophes	90			70			37			95			74			69				160			143
Prior accident year development [1] [2]	22			(10		)	(55		)	(53		)	(73		)	(19		)		12			(92		)
Total losses and loss adjustment expenses	1,291			1,097			1,016			1,097			978			1,021				2,388			1,999
Amortization of DAC [3]	310			274			268			264			259			257				584			516
Underwriting expenses	392			337			356			353			336			324				729			660
Amortization of other intangible assets	2			2			1			2			1			—				4			1
Dividends to policyholders	6			6			5			8			6			4				12			10
Underwriting gain (loss) [4]	(5		)	70			168			70			173			114				65			287
Net servicing income (loss)	2			(1		)	2			(1		)	1			—				1			1
Net investment income	281			259			247			250			242			258				540			500
Net realized capital gains (losses)	54			115			(106		)	29			42			(8		)		169			34
Loss on reinsurance transaction [5]	(91		)	—			—			—			—			—				(91		)	—
Other income (expense)	(6		)	(1		)	(3		)	2			(3		)	2				(7		)	(1		)
Income before income taxes	235			442			308			350			455			366				677			821
Income tax expense	44			79			55			61			83			68				123			151
Net income	191			363			253			289			372			298				554			670
Adjustments to reconcile net income to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax	(54		)	(113		)	108			(28		)	(40		)	6				(167		)	(34		)
Integration costs, before tax [6]	6			1			—			—			—			—				7			—
Change in loss reserves upon acquisition of a business, before tax [1]	97			—			—			—			—			—				97			—
Loss on reinsurance transaction, before tax [5]	91			—			—			—			—			—				91			—
Income tax expense (benefit) [7]	(27		)	23			(24		)	4			9			(2		)		(4		)	7
Core earnings	$	304		$	274		$	337		$	265		$	341		$	302			$	578		$	643

[1] See [4] on page 2 for impact related to Navigators Group acquisition.

[2] For further information, see Commercial Lines Income Statements (continued), page 11.

[3] Includes amortization of the Value of Business Acquired ("VOBA") intangible asset arising from the acquisition of Navigators Group. The VOBA asset approximates the DAC that had been recognized by Navigators Group prior to the acquisition.

[4] Excluding the non-core change in loss reserves upon acquisition of Navigators Group (see [4] on page 2), underwriting gain for the three and six months ended June 30, 2019 was $92 and $162, respectively.

[5] See [1] on page 2 for impact from Navigators Group acquisition.

[6] The three and six month periods ended June 30, 2019 included Navigators Group integration costs.

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

10

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

INCOME STATEMENTS (CONTINUED)

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

	THREE MONTHS ENDED																			SIX MONTHS ENDED
	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Jun 30 2019			Jun 30 2018
Auto liability	$	2		$	—		$	—		$	(5	)	$	(5	)	$	(5	)		$	2		$	(10	)
Professional liability	33			—			—			(20		)	6			2				33			8
Package business	(14		)	5			(10		)	(9		)	(15		)	8				(9		)	(7		)
General liability	37			6			20			4			20			8				43			28
Marine	10			—			—			—			—			—				10			—
Bond	—			—			2			—			—			—				—			—
Assumed Reinsurance	3			—			—			—			—			—				3			—
Commercial property	(13		)	(2		)	(2		)	2			1			(13		)		(15		)	(12		)
Workers’ compensation	(30		)	(20		)	(67		)	(24		)	(48		)	(25		)		(50		)	(73		)
Workers' compensation discount accretion	9			8			10			10			10			10				17			20
Catastrophes	(16		)	(12		)	(4		)	(11		)	(44		)	(8		)		(28		)	(52		)
Uncollectible reinsurance	—			—			—			—			—			—				—			—
Other reserve re-estimates	1			5			(4		)	—			2			4				6			6
Total prior accident year development	$	22		$	(10	)	$	(55	)	$	(53	)	$	(73	)	$	(19	)		$	12		$	(92	)
Change in loss reserves upon acquisition of Navigators [1]	68			—			—			—			—			—				68			—
Prior accident year development excluding increase in Navigators reserves	$	(46	)	$	(10	)	$	(55	)	$	(53	)	$	(73	)	$	(19	)		$	(56	)	$	(92	)

[1] The prior accident year reserve increase of $68 related to the Navigators Group acquisition for the three and six months ended June 30, 2019 (see [4] on page 2) represented increases of $34 for general liability, $25 for professional liability, $10 for marine, $3 for assumed reinsurance and $2 for commercial auto liability, partially offset by a reserve decrease of $6 for commercial property.

11

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

UNDERWRITING RATIOS

	THREE MONTHS ENDED																			SIX MONTHS ENDED
	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Jun 30 2019			Jun 30 2018
UNDERWRITING GAIN	$	(5	)	$	70		$	168		$	70		$	173		$	114			$	65		$	287
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1]	59.3			58.4			57.3			59.1			56.0			56.8				58.9			56.4
Current accident year catastrophes	4.5			3.9			2.0			5.3			4.2			4.0				4.3			4.1
Prior accident year development [2]	1.1			(0.6		)	(3.0		)	(3.0		)	(4.2		)	(1.1		)		0.3			(2.7		)
Total losses and loss adjustment expenses	65.0			61.7			56.3			61.5			56.0			59.7				63.4			57.8
Expenses [3]	35.0			34.0			34.2			34.2			33.7			33.4				34.5			33.6
Policyholder dividends	0.3			0.3			0.3			0.4			0.3			0.2				0.3			0.3
Combined ratio	100.3			96.1			90.7			96.1			90.1			93.3				98.3			91.7
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development	(5.6		)	(3.3		)	1.0			(2.3		)	—			(2.9		)		(4.6		)	(1.4		)
Current accident year change in loss reserves upon acquisition of a business	(1.5		)	—			—			—			—			—				(0.8		)	—
Underlying combined ratio	93.2			92.7			91.7			93.7			90.0			90.4				92.9			90.2
COMBINED RATIOS BY LINE OF BUSINESS
SMALL COMMERCIAL
Combined ratio	89.2			92.4			83.4			88.3			85.6			88.9				90.7			87.2
Current accident year catastrophes	5.6			3.4			2.1			2.7			5.5			3.5				4.5			4.5
Prior accident year development	(4.3		)	0.1			(4.7		)	(2.8		)	(5.1		)	(2.0		)		(2.1		)	(3.6		)
Underlying combined ratio	87.8			88.9			86.0			88.4			85.2			87.5				88.3			86.3
MIDDLE & LARGE COMMERCIAL
Combined ratio	105.8			103.0			99.0			111.7			97.8			100.7				104.4			99.2
Current accident year catastrophes	4.1			5.0			0.9			10.0			3.3			5.9				4.6			4.5
Prior accident year development [2]	0.7			(0.2		)	(1.8		)	0.4			(2.6		)	(0.2		)		0.3			(1.4		)
Underlying combined ratio	100.9			98.1			99.9			101.2			97.1			95.0				99.5			96.1
GLOBAL SPECIALTY
Combined ratio	120.4			85.7			95.4			69.6			92.1			86.1				109.0			89.2
Current accident year catastrophes	2.3			2.3			6.7			0.4			0.2			—				2.3			0.1
Prior accident year development [2]	18.2			(5.9		)	0.4			(20.6		)	3.8			—				10.3			1.9
Current accident year change in loss reserves upon acquisition of a business [1]	9.1			—			—			—			—			—				6.1			—
Underlying combined ratio [4]	90.7			89.4			88.4			89.8			88.1			86.1				90.3			87.1

[1] The current accident year reserve increases of $29 related to the Navigators Group acquisition for the three and six months ended June 30, 2019 (see [4] on page 2) represented 1.5 points and 0.8 points, respectively, of the Commercial Lines combined ratio and 9.2 points and 6.2 points, respectively, of the global specialty combined ratio.

[2] The prior accident year reserve increases of $68 related to the Navigators Group acquisition for the three and six months ended June 30, 2019 (see [4] on page 2), including $5 in middle & large commercial and $63 in global specialty, represented 3.4 points and 1.8 points, respectively, of the Commercial Lines combined ratio, 0.7 points and 0.3 points, respectively, of the middle & large commercial combined ratio and 20.1 points and 13.5 points, respectively, of the global specialty combined ratio.

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

[4] For the three and six months ended June 30, 2019, included an underlying combined ratio on the business acquired from Navigators Group of 96.3 for the period from the May 23, 2019 acquisition date through June 30, 2019.

12

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

SUPPLEMENTAL DATA

	THREE MONTHS ENDED																			SIX MONTHS ENDED
	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Jun 30 2019			Jun 30 2018
WRITTEN PREMIUMS
Small Commercial	$	960		$	1,010		$	889		$	898		$	906		$	978			$	1,970		$	1,884
Middle & Large Commercial	757			757			742			686			657			716				1,514			1,373
Middle Market [1]	673			641			653			605			569			600				1,314			1,169
National Accounts and Other	84			116			89			81			88			116				200			204
Global Specialty	353			171			156			155			161			145				524			306
U.S. [2]	274			171			156			155			161			145				445			306
International [3]	43			—			—			—			—			—				43			—
Global Re [4]	36			—			—			—			—			—				36			—
Other	8			11			13			12			10			12				19			22
Total	$	2,078		$	1,949		$	1,800		$	1,751		$	1,734		$	1,851			$	4,027		$	3,585
EARNED PREMIUMS
Small Commercial	$	933		$	910		$	930		$	920		$	907		$	894			$	1,843		$	1,801
Middle & Large Commercial	729			703			710			702			675			659				1,432			1,334
Middle Market [1]	637			608			610			598			580			564				1,245			1,144
National Accounts and Other	92			95			100			104			95			95				187			190
Global Specialty	314			153			156			151			152			146				467			298
U.S. [2]	241			153			156			151			152			146				394			298
International [3]	44			—			—			—			—			—				44			—
Global Re [4]	29			—			—			—			—			—				29			—
Other	11			11			10			12			11			12				22			23
Total	$	1,987		$	1,777		$	1,806		$	1,785		$	1,745		$	1,711			$	3,764		$	3,456
U.S. STANDARD COMMERCIAL LINES STATISTICAL PREMIUM INFORMATION [5]
New Business Premium
Small Commercial	$	183		$	175		$	157		$	145		$	142		$	156			$	358		$	298
Middle Market	$	177		$	140		$	136		$	131		$	135		$	138			$	317		$	273
Renewal Price Increases [6]
Standard Commercial Lines - Written	2.2		%	1.7		%	1.7		%	1.8		%	3.1		%	2.8		%		2.0		%	3.0		%
Standard Commercial Lines - Earned	2.2		%	2.4		%	2.6		%	3.0		%	3.3		%	3.3		%		2.3		%	3.3		%
Policy Count Retention [6]
Small Commercial	83		%	84		%	83		%	83		%	82		%	82		%		83		%	82		%
Middle Market	81		%	81		%	79		%	78		%	77		%	78		%		81		%	78		%
Policies in Force (in thousands) [6]
Small Commercial	1,291			1,280			1,271			1,264			1,259			1,258
Middle Market	64			64			64			64			65			65

[1] Included $12 of written premium and $9 of earned premium in the three and six months ended June 30, 2019 related to business acquired from Navigators Group.

[2] 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"). Included $99 of written premium and $80 of earned premium in the three and six months ended June 30, 2019 related to business acquired from Navigators Group.

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

[4] Global Re includes accident and health and other assumed premiums previously written by Navigators Re.

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

[6] Excludes certain risk classes of higher hazard general liability in middle market.

13

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

INCOME STATEMENTS

	THREE MONTHS ENDED																			SIX MONTHS ENDED
	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Jun 30 2019			Jun 30 2018
Written premiums	$	824		$	771		$	758		$	854		$	857		$	807			$	1,595		$	1,664
Change in unearned premium reserve	23			(28		)	(77		)	5			1			(52		)		(5		)	(51		)
Earned premiums	801			799			835			849			856			859				1,600			1,715
Fee income	10			9			10			10			10			10				19			20
Losses and loss adjustment expenses
Current accident year before catastrophes	517			500			561			565			557			566				1,017			1,123
Current accident year catastrophes	48			34			324			74			114			34				82			148
Prior accident year development [1]	4			(1		)	(11		)	(18		)	10			(13		)		3			(3		)
Total losses and loss adjustment expenses	569			533			874			621			681			587				1,102			1,268
Amortization of DAC	65			65			66			68			70			71				130			141
Underwriting expenses	155			155			157			155			156			143				310			299
Amortization of other intangible assets	2			1			1			1			1			1				3			2
Underwriting gain (loss)	20			54			(253		)	14			(42		)	67				74			25
Net servicing income	4			3			3			5			4			4				7			8
Net investment income	46			42			39			39			37			40				88			77
Net realized capital gains (losses)	8			19			(17		)	5			5			—				27			5
Other income (expense)	(2		)	1			(2		)	1			1			(1		)		(1		)	—
Income (loss) before income taxes	76			119			(230		)	64			5			110				195			115
Income tax expense (benefit)	14			23			(52		)	13			(1		)	21				37			20
Net income (loss)	62			96			(178		)	51			6			89				158			95
Adjustments to reconcile net income (loss) to core earnings (losses):
Net realized capital losses (gains), excluded from core earnings, before tax	(8		)	(18		)	17			(5		)	(6		)	1				(26		)	(5		)
Income tax expense (benefit) [2]	1			4			(5		)	1			2			(1		)		5			1
Core earnings (losses)	$	55		$	82		$	(166	)	$	47		$	2		$	89			$	137		$	91

[1] For further information, see Personal Lines Income Statements (continued), page 15.

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

14

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

INCOME STATEMENTS (CONTINUED)

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

	THREE MONTHS ENDED																			SIX MONTHS ENDED
	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Jun 30 2019			Jun 30 2018
Auto liability	$	—		$	(5	)	$	(8	)	$	(10	)	$	—		$	—			$	(5	)	$	—
Homeowners	—			1			(5		)	(7		)	(1		)	(12		)		1			(13		)
Catastrophes	2			4			2			(2		)	13			5				6			18
Other reserve re-estimates, net	2			(1		)	—			1			(2		)	(6		)		1			(8		)
Total prior accident year development	$	4		$	(1	)	$	(11	)	$	(18	)	$	10		$	(13	)		$	3		$	(3	)

15

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

UNDERWRITING RATIOS

	THREE MONTHS ENDED																			SIX MONTHS ENDED
	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Jun 30 2019			Jun 30 2018
UNDERWRITING GAIN (LOSS)	$	20		$	54		$	(253	)	$	14		$	(42	)	$	67			$	74		$	25
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes	64.5			62.6			67.2			66.5			65.1			65.9				63.6			65.5
Current accident year catastrophes	6.0			4.3			38.8			8.7			13.3			4.0				5.1			8.6
Prior accident year development	0.5			(0.1		)	(1.3		)	(2.1		)	1.2			(1.5		)		0.2			(0.2		)
Total losses and loss adjustment expenses	71.0			66.7			104.7			73.1			79.6			68.3				68.9			73.9
Expenses	26.5			26.5			25.6			25.2			25.4			23.9				26.5			24.6
Combined ratio	97.5			93.2			130.3			98.4			104.9			92.2				95.4			98.5
Adjustment to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development	(6.5		)	(4.2		)	(37.5		)	(6.6		)	(14.5		)	(2.5		)		(5.3		)	(8.4		)
Underlying combined ratio	91.0			89.1			92.8			91.8			90.4			89.8				90.1			90.1
PRODUCT
Automobile
Combined ratio	97.2			93.1			102.9			98.9			99.7			93.1				95.2			96.4
Current accident year catastrophes	0.9			0.6			0.9			2.0			3.4			0.5				0.7			1.9
Prior accident year development	(0.5		)	(1.1		)	(1.5		)	(1.7		)	(0.2		)	(1.6		)		(0.8		)	(0.9		)
Underlying combined ratio	96.7			93.6			103.6			98.5			96.5			94.2				95.2			95.4
Homeowners
Combined ratio	99.3			93.1			194.3			96.9			117.8			89.8				96.2			103.8
Current accident year catastrophes	17.6			12.7			126.5			23.6			36.4			12.0				15.1			24.2
Prior accident year development	2.6			2.1			(0.9		)	(3.0		)	5.0			(1.1		)		2.3			2.0
Underlying combined ratio	79.2			78.4			68.7			76.3			76.4			78.9				78.8			77.7

16

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

SUPPLEMENTAL DATA

	THREE MONTHS ENDED																			SIX MONTHS ENDED
	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Jun 30 2019			Jun 30 2018
DISTRIBUTION
WRITTEN PREMIUMS
AARP Direct	$	692		$	643		$	615		$	706		$	704		$	654			$	1,335		$	1,358
AARP Agency	60			62			63			64			67			67				122			134
Other Agency	63			58			71			73			77			77				121			154
Other	9			8			9			11			9			9				17			18
Total	$	824		$	771		$	758		$	854		$	857		$	807			$	1,595		$	1,664
EARNED PREMIUMS
AARP Direct	$	663		$	657		$	681		$	687		$	684		$	681			$	1,320		$	1,365
AARP Agency	63			65			68			71			74			77				128			151
Other Agency	66			68			75			83			86			92				134			178
Other	9			9			11			8			12			9				18			21
Total	$	801		$	799		$	835		$	849		$	856		$	859			$	1,600		$	1,715
PRODUCT LINE
WRITTEN PREMIUMS
Automobile	$	564		$	555		$	523		$	583		$	586		$	581			$	1,119		$	1,167
Homeowners	260			216			235			271			271			226				476			497
Total	$	824		$	771		$	758		$	854		$	857		$	807			$	1,595		$	1,664
EARNED PREMIUMS
Automobile	$	557		$	555		$	582		$	591		$	596		$	600			$	1,112		$	1,196
Homeowners	244			244			253			258			260			259				488			519
Total	$	801		$	799		$	835		$	849		$	856		$	859			$	1,600		$	1,715

17

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

SUPPLEMENTAL DATA (CONTINUED)

	THREE MONTHS ENDED																			SIX MONTHS ENDED
	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Jun 30 2019			Jun 30 2018
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
New Business Premium
Automobile	$	59		$	56		$	43		$	47		$	42		$	37			$	115		$	79
Homeowners	$	20		$	16		$	14		$	12		$	11		$	9			$	36		$	20
Renewal Written Price Increases
Automobile	4.9		%	5.5		%	5.1		%	6.0		%	8.1		%	9.5		%		5.2		%	8.8		%
Homeowners	7.1		%	7.9		%	9.1		%	9.9		%	10.4		%	9.4		%		7.5		%	10.0		%
Renewal Earned Price Increases
Automobile	5.6		%	6.5		%	7.8		%	9.2		%	10.4		%	10.7		%		6.1		%	10.5		%
Homeowners	8.9		%	9.6		%	9.7		%	9.6		%	9.2		%	8.9		%		9.2		%	9.1		%
Policy Count Retention
Automobile	85		%	85		%	83		%	83		%	82		%	80		%		85		%	81		%
Homeowners	85		%	84		%	84		%	83		%	84		%	82		%		85		%	83		%
Premium Retention
Automobile	87		%	87		%	84		%	85		%	86		%	85		%		87		%	86		%
Homeowners	90		%	89		%	90		%	90		%	91		%	89		%		90		%	90		%
Policies in Force (in thousands)
Automobile	1,465			1,485			1,510			1,547			1,589			1,641
Homeowners	903			913			927			948			978			1,008

18

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

P&C OTHER OPERATIONS

INCOME STATEMENTS

	THREE MONTHS ENDED																			SIX MONTHS ENDED
	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Jun 30 2019			Jun 30 2018
Losses and loss adjustment expenses
Prior accident year development	$	9		$	—		$	38		$	11		$	16		—				9			16
Total losses and loss adjustment expenses	9			—			38			11			16			—				9			16
Underwriting expenses	3			3			3			3			3			3				6			6
Underwriting loss	(12		)	(3		)	(41		)	(14		)	(19		)	(3		)		(15		)	(22		)
Net investment income	21			22			22			22			22			24				43			46
Net realized capital gains (losses)	4			9			(9		)	3			3			(1		)		13			2
Other expense	—			—			(1		)	—			—			—				—			—
Income (loss) before income taxes	13			28			(29		)	11			6			20				41			26
Income tax expense (benefit)	2			5			(13		)	2			1			3				7			4
Net income (loss)	11			23			(16		)	9			5			17				34			22
Adjustments to reconcile net income to core earnings (losses):
Net realized capital losses (gains), excluded from core earnings, before tax	(3		)	(9		)	9			(3		)	(3		)	1				(12		)	(2		)
Income tax expense (benefit) [1]	—			2			(8		)	2			1			(1		)		2			—
Core earnings (losses)	$	8		$	16		$	(15	)	$	8		$	3		$	17			$	24		$	20

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

19

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

GROUP BENEFITS

INCOME STATEMENTS

	THREE MONTHS ENDED																			SIX MONTHS ENDED
	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Jun 30 2019			Jun 30 2018
Earned premiums	$	1,377		$	1,364		$	1,356		$	1,353		$	1,357		$	1,357			$	2,741		$	2,714
Fee income	45			45			44			43			44			44				90			88
Net investment income	121			121			121			117			115			121				242			236
Net realized capital gains (losses)	7			5			(21		)	(3		)	2			(25		)		12			(23		)
Total revenues	1,550			1,535			1,500			1,510			1,518			1,497				3,085			3,015
Benefits, losses and loss adjustment expenses	1,062			1,053			1,016			1,054			1,059			1,085				2,115			2,144
Amortization of DAC	14			13			12			12			11			10				27			21
Insurance operating costs and other expenses	324			315			325			319			317			321				639			638
Amortization of other intangible assets	11			10			12			15			16			17				21			33
Total benefits, losses and expenses	1,411			1,391			1,365			1,400			1,403			1,433				2,802			2,836
Income before income taxes	139			144			135			110			115			64				283			179
Income tax expense	26			26			22			33			19			10				52			29
Net income	113			118			113			77			96			54				231			150
Adjustments to reconcile net income to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax	(6		)	(5		)	22			3			—			26				(11		)	26
Integration and transaction costs associated with acquired business, before tax	10			9			12			12			11			12				19			23
Income tax expense (benefit) [1]	(2		)	—			(11		)	10			(3		)	(7		)		(2		)	(10		)
Core earnings	$	115		$	122		$	136		$	102		$	104		$	85			$	237		$	189
Margin
Net income margin	7.3		%	7.7		%	7.5		%	5.1		%	6.3		%	3.6		%		7.5		%	5.0		%
Core earnings margin*	7.5		%	8.0		%	8.9		%	6.7		%	6.9		%	5.6		%		7.7		%	6.2		%
ROE
Net income available to common stockholders [2]	11.2		%	11.1		%	9.3		%	12.0		%	11.9		%	10.9		%
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized capital losses, excluded from core earnings, before tax	0.4		%	0.6		%	1.7		%	1.0		%	0.6		%	0.1		%
Integration and transaction costs associated with acquired business, before tax	1.3		%	1.4		%	1.5		%	2.1		%	1.6		%	1.2		%
Income tax benefit [1]	(0.1		%)	(0.1		%)	(0.4		%)	(2.2		%)	(2.6		%)	(2.3		%)
Impact of AOCI, excluded from core earnings ROE	0.5		%	0.3		%	0.2		%	0.2		%	0.4		%	0.4		%
Core earnings [2]	13.3		%	13.3		%	12.3		%	13.1		%	11.9		%	10.3		%

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

[2] Net income ROE and core earnings ROE assume a portion of debt and interest expense and preferred stock and preferred stock dividends accounted for within Corporate are allocated to Group Benefits. For further information, see Appendix, page 33.

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

20

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

GROUP BENEFITS

SUPPLEMENTAL DATA

	THREE MONTHS ENDED																			SIX MONTHS ENDED
	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Jun 30 2019			Jun 30 2018
PREMIUMS
Fully insured ongoing premiums
Group disability	$	679		$	659		$	651		$	641		$	642		$	633			$	1,338		$	1,275
Group life	633			641			643			652			651			664				1,274			1,315
Other [1]	61			62			62			60			59			60				123			119
Total fully insured ongoing premiums	1,373			1,362			1,356			1,353			1,352			1,357				2,735			2,709
Total buyouts [2]	4			2			—			—			5			—				6			5
Total premiums	$	1,377		$	1,364		$	1,356		$	1,353		$	1,357		$	1,357			$	2,741		$	2,714
SALES (GROSS ANNUALIZED NEW PREMIUMS)
Fully insured ongoing sales
Group disability	$	48		$	219		$	37		$	48		$	47		$	260			$	267		$	307
Group life	43			143			21			47			34			160				186			194
Other [1]	8			45			3			9			4			34				53			38
Total fully insured ongoing sales	99			407			61			104			85			454				506			539
Total buyouts [2]	4			2			—			—			5			—				6			5
Total sales	$	103		$	409		$	61		$	104		$	90		$	454			$	512		$	544
RATIOS, EXCLUDING BUYOUTS
Group disability loss ratio	72.9		%	69.6		%	67.5		%	75.9		%	74.3		%	74.9		%		71.3		%	74.6		%
Group life loss ratio	77.8		%	81.3		%	78.8		%	76.6		%	77.4		%	80.9		%		79.6		%	79.2		%
Total loss ratio	74.6		%	74.7		%	72.6		%	75.5		%	75.5		%	77.4		%		74.7		%	76.5		%
Expense ratio [3]	23.9		%	23.4		%	24.1		%	23.9		%	23.9		%	24.0		%		23.6		%	23.9		%

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

[2] Takeover of open claim liabilities and other non-recurring premium amounts.

[3] 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.

21

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

HARTFORD FUNDS

INCOME STATEMENTS

	THREE MONTHS ENDED																			SIX MONTHS ENDED
	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Jun 30 2019			Jun 30 2018
Investment management fees	$	180		$	171		$	174		$	188		$	182		$	181			$	351		$	363
Shareholder servicing fees	21			21			21			23			22			21				42			43
Other revenue	52			48			53			57			58			57				100			115
Net realized capital gains (losses)	—			2			(3		)	—			(1		)	—				2			(1		)
Total revenues	253			242			245			268			261			259				495			520
Sub-advisory expense	65			62			64			69			66			66				127			132
Employee compensation and benefits	28			32			29			28			27			29				60			56
Distribution and service	84			81			82			91			91			91				165			182
General, administrative and other	29			30			25			28			31			30				59			61
Total expenses	206			205			200			216			215			216				411			431
Income before income taxes	47			37			45			52			46			43				84			89
Income tax expense	9			7			9			11			9			9				16			18
Net income	$	38		$	30		$	36		$	41		$	37		$	34			$	68		$	71
Adjustments to reconcile net income to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax	—			(2		)	3			—			1			—				(2		)	1
Income tax benefit	—			—			(1		)	—			—			—				—			—
Core earnings	$	38		$	28		$	38		$	41		$	38		$	34			$	66		$	72
Daily average Hartford Funds AUM	$117,875			$112,210			$112,097			$119,897			$117,070			$117,301				$	115,058		$	117,184
Return on assets (bps, net of tax) [1]
Net income	12.9			10.9			12.6			13.6			12.6			11.9				11.9			12.2
Core earnings*	12.9			10.3			13.4			13.6			12.8			11.9				11.5			12.4
ROE
Net income available to common stockholders [2]	49.7		%	51.3		%	54.2		%	51.8		%	47.9		%	44.3		%
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized capital losses excluded from core earnings, before tax	0.4		%	0.7		%	1.5		%	0.4		%	0.4		%	—		%
Income tax expense (benefit)	(0.4		%)	(0.4		%)	(0.4		%)	1.5		%	1.5		%	1.6		%
Impact of AOCI, excluded from core earnings ROE	(0.6		%)	(0.4		%)	(0.5		%)	(0.4		%)	(0.3		%)	(0.2		%)
Core earnings [2]	49.1		%	51.2		%	54.8		%	53.3		%	49.5		%	45.7		%

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

[2] Net income ROE and core earnings ROE assume a portion of debt and interest expense and preferred stock and preferred stock dividends accounted for within Corporate are allocated to Hartford Funds. For further information, see Appendix, page 33.

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

22

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

HARTFORD FUNDS

ASSET VALUE ROLLFORWARD

ASSETS UNDER MANAGEMENT BY ASSET CLASS

	THREE MONTHS ENDED																			SIX MONTHS ENDED
	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Jun 30 2019			Jun 30 2018
Equity Funds
Beginning balance	$	66,158		$	56,986		$	69,463		$	66,285		$	64,702		$	63,740			$	56,986		$	63,740
Sales	3,761			4,358			3,749			3,672			3,452			4,175				8,119			7,627
Redemptions	(4,153		)	(3,893		)	(5,376		)	(3,449		)	(3,116		)	(3,749		)		(8,046		)	(6,865		)
Net flows	(392		)	465			(1,627		)	223			336			426				73			762
Change in market value and other	2,708			8,707			(10,850		)	2,955			1,247			536				11,415			1,783
Ending balance	$	68,474		$	66,158		$	56,986		$	69,463		$	66,285		$	64,702			$	68,474		$	66,285
Fixed Income Funds
Beginning balance	$	15,070		$	14,467		$	14,831		$	14,556		$	14,378		$	14,401			$	14,467		$	14,401
Sales	1,274			1,314			1,222			946			1,119			1,002				2,588			2,121
Redemptions	(1,121		)	(1,138		)	(1,541		)	(772		)	(960		)	(1,030		)		(2,259		)	(1,990		)
Net flows	153			176			(319		)	174			159			(28		)		329			131
Change in market value and other	346			427			(45		)	101			19			5				773			24
Ending balance	$	15,569		$	15,070		$	14,467		$	14,831		$	14,556		$	14,378			$	15,569		$	14,556
Multi-Strategy Investments Funds [1]
Beginning balance	$	19,540		$	18,233		$	20,062		$	19,894		$	20,137		$	20,469			$	18,233		$	20,469
Sales	672			640			622			558			681			1,000				1,312			1,681
Redemptions	(823		)	(869		)	(1,079		)	(971		)	(931		)	(914		)		(1,692		)	(1,845		)
Net flows	(151		)	(229		)	(457		)	(413		)	(250		)	86				(380		)	(164		)
Change in market value and other	706			1,536			(1,372		)	581			7			(418		)		2,242			(411		)
Ending balance	$	20,095		$	19,540		$	18,233		$	20,062		$	19,894		$	20,137			$	20,095		$	19,894
Exchange-traded Products ("ETP") AUM
Beginning balance	$	2,457		$	1,871		$	1,177		$	930		$	666		$	480			$	1,871		$	480
Net flows	285			462			721			261			228			194				747			422
Change in market value and other	9			124			(27		)	(14		)	36			(8		)		133			28
Ending balance	$	2,751		$	2,457		$	1,871		$	1,177		$	930		$	666			$	2,751		$	930
Mutual Fund and ETP AUM
Beginning balance	$	103,225		$	91,557		$	105,533		$	101,665		$	99,883		$	99,090			$	91,557		$	99,090
Sales - mutual fund	5,707			6,312			5,593			5,176			5,252			6,177				12,019			11,429
Redemptions - mutual fund	(6,097		)	(5,900		)	(7,996		)	(5,192		)	(5,007		)	(5,693		)		(11,997		)	(10,700		)
Net flows - ETP	285			462			721			261			228			194				747			422
Net flows - mutual fund and ETP	(105		)	874			(1,682		)	245			473			678				769			1,151
Change in market value and other	3,769			10,794			(12,294		)	3,623			1,309			115				14,563			1,424
Ending balance	106,889			103,225			91,557			105,533			101,665			99,883				106,889			101,665
Talcott Resolution life and annuity separate account AUM [2]	14,412			14,364			13,283			15,543			15,376			15,614				14,412			15,376
Hartford Funds AUM	$	121,301		$	117,589		$	104,840		$	121,076		$	117,041		$	115,497			$	121,301		$	117,041

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

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

23

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CORPORATE

INCOME STATEMENTS

	THREE MONTHS ENDED																			SIX MONTHS ENDED
	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Jun 30 2019			Jun 30 2018
Fee income [1]	$	11		$	13		$	11		$	15		$	4		$	2			$	24		$	6
Other revenue [2]	10			34			13			6			2			—				44			2
Net investment income	17			24			26			15			11			7				41			18
Net realized capital gains (losses)	7			13			(16		)	4			1			4				20			5
Total revenues	45			84			34			40			18			13				129			31
Benefits, losses and loss adjustment expenses [3]	3			2			2			3			4			2				5			6
Insurance operating costs and other expenses	33			13			24			25			19			15				46			34
Loss on extinguishment of debt	—			—			—			—			6			—				—			6
Interest expense	63			64			70			69			79			80				127			159
Total expenses	99			79			96			97			108			97				178			205
Income (loss) from continuing operations before income taxes	(54		)	5			(62		)	(57		)	(90		)	(84		)		(49		)	(174		)
Income tax expense (benefit)	(11		)	5			(50		)	(17		)	(8		)	(20		)		(6		)	(28		)
Loss from continuing operations, net of tax	(43		)	—			(12		)	(40		)	(82		)	(64		)		(43		)	(146		)
Income from discontinued operations, net of tax [4]	—			—			—			5			148			169				—			317
Net income (loss)	(43		)	—			(12		)	(35		)	66			105				(43		)	171
Preferred stock dividends	—			5			6			—			—			—				5			—
Net income (loss) available to common stockholders	(43		)	(5		)	(18		)	(35		)	66			105				(48		)	171
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax	(8		)	(13		)	16			(4		)	(2		)	(4		)		(21		)	(6		)
Loss on extinguishment of debt, before tax	—			—			—			—			6			—				—			6
Income tax expense (benefit) [5]	1			3			(44		)	(1		)	2			2				4			4
Income from discontinued operations, net of tax [4]	—			—			—			(5		)	(148		)	(169		)		—			(317		)
Transaction costs, before tax [6]	15			—			—			—			—			—				15			—
Core losses	$	(35	)	$	(15	)	$	(46	)	$	(45	)	$	(76	)	$	(66	)		$	(50	)	$	(142	)

[1] Beginning in June 2018, includes fee income from managing invested assets of the life and annuity business sold in May 2018.

[2] For the three and six months ended June 30, 2019, includes $3 and $31, respectively, of income before tax from the Company's retained 9.7% equity interest in the limited partnership that acquired the life and annuity business sold in May 2018.

[3] Relates to run-off structured settlement and terminal funding agreement liabilities.

[4] The three months ended June 30, 2018 and March 31, 2018, included a reduction in loss on sale of $151 and $62, respectively, related to the life and annuity business sold in May 2018.

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

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

24

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTMENT INCOME BEFORE TAX

CONSOLIDATED

	THREE MONTHS ENDED																			SIX MONTHS ENDED
	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Jun 30 2019			Jun 30 2018
Net Investment Income
Fixed maturities [1]
Taxable	$	296		$	284		$	282		$	269		$	252		$	238			$	580		$	490
Tax-exempt	90			97			100			101			106			111				187			217
Total fixed maturities	386			381			382			370			358			349				767			707
Equity securities	12			7			14			6			6			6				19			12
Mortgage loans	41			40			39			35			34			33				81			67
Limited partnerships and other alternative investments [2]	60			56			48			45			39			73				116			112
Other [3]	7			9			(7		)	10			9			8				16			17
Subtotal	506			493			476			466			446			469				999			915
Investment expense	(18		)	(23		)	(19		)	(22		)	(18		)	(18		)		(41		)	(36		)
Total net investment income	$	488		$	470		$	457		$	444		$	428		$	451			$	958		$	879
Annualized investment yield, before tax [4]	4.2		%	4.1		%	4.0		%	4.0		%	3.9		%	4.2		%		4.1		%	4.1		%
Annualized limited partnerships and other alternative investment yield, before tax [4]	13.9		%	13.4		%	11.6		%	10.6		%	9.5		%	18.6		%		13.9		%	14.3		%
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]*	3.8		%	3.7		%	3.7		%	3.7		%	3.7		%	3.7		%		3.8		%	3.7		%
Annualized investment yield, net of tax [4]	3.4		%	3.4		%	3.3		%	3.3		%	3.3		%	3.5		%		3.4		%	3.4		%
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]*	3.1		%	3.1		%	3.1		%	3.1		%	3.1		%	3.0		%		3.1		%	3.1		%
Average reinvestment rate [5]	3.5		%	4.1		%	4.3		%	4.0		%	4.0		%	3.8		%		3.7		%	3.9		%
Average sales/maturities yield [6]	4.0		%	4.1		%	4.0		%	3.8		%	3.7		%	3.3		%		4.0		%	3.5		%
Portfolio duration (in years) [7]	4.9			4.8			4.7			4.9			4.9			5.1				4.9			4.9

[1] Includes income on short-term bonds.

[2] Other alternative investments include an insurer-owned life insurance policy which is invested in hedge funds and other investments.

[3] Includes 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, cash equivalent 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 securities.

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

25

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTMENT INCOME BEFORE TAX

PROPERTY & CASUALTY

	THREE MONTHS ENDED																			SIX MONTHS ENDED
	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Jun 30 2019			Jun 30 2018
Net Investment Income
Fixed maturities [1]
Taxable	$	201		$	182		$	184		$	178		$	168		$	163			$	383		$	331
Tax-exempt	68			73			76			77			79			82				141			161
Total fixed maturities	269			255			260			255			247			245				524			492
Equity securities	8			5			5			5			5			4				13			9
Mortgage loans	28			27			28			24			23			24				55			47
Limited partnerships and other alternative investments [2]	50			46			37			35			33			58				96			91
Other [3]	7			7			(8		)	8			6			4				14			10
Subtotal	362			340			322			327			314			335				702			649
Investment expense	(14		)	(17		)	(14		)	(16		)	(13		)	(13		)		(31		)	(26		)
Total net investment income	$	348		$	323		$	308		$	311		$	301		$	322			$	671		$	623
Annualized investment yield, before tax [4]	4.2		%	4.2		%	4.0		%	4.1		%	4.0		%	4.3		%		4.2		%	4.2		%
Annualized limited partnerships and other alternative investment yield, before tax [4]	13.9		%	13.0		%	10.7		%	9.8		%	9.3		%	17.0		%		13.6		%	13.4		%
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]*	3.8		%	3.8		%	3.7		%	3.8		%	3.8		%	3.7		%		3.8		%	3.7		%
Annualized investment yield, net of tax [4]	3.5		%	3.6		%	3.3		%	3.4		%	3.4		%	3.5		%		3.5		%	3.5		%
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]*	3.2		%	3.2		%	3.0		%	3.2		%	3.2		%	3.1		%		3.2		%	3.1		%
Average reinvestment rate [5]	3.5		%	4.1		%	4.4		%	3.9		%	4.0		%	3.7		%		3.7		%	3.9		%
Average sales/maturities yield [6]	3.9		%	4.1		%	4.1		%	3.8		%	3.9		%	3.7		%		4.0		%	3.8		%
Portfolio duration (in years) [7]	4.8			4.9			4.9			4.9			4.9			4.9				4.8			4.9

Footnotes [1] through [7] are explained on page 25.

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

26

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTMENT INCOME BEFORE TAX

GROUP BENEFITS

	THREE MONTHS ENDED																			SIX MONTHS ENDED
	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Jun 30 2019			Jun 30 2018
Net Investment Income
Fixed maturities [1]
Taxable	$	81		$	81		$	80		$	77		$	75		$	70			$	162		$	145
Tax-exempt	20			22			22			23			25			27				42			52
Total fixed maturities	101			103			102			100			100			97				204			197
Equity securities	1			—			1			—			—			1				1			1
Mortgage loans	13			13			11			11			11			9				26			20
Limited partnerships and other alternative investments [2]	10			10			11			10			6			15				20			21
Other [3]	—			1			1			2			3			4				1			7
Subtotal	125			127			126			123			120			126				252			246
Investment expense	(4		)	(6		)	(5		)	(6		)	(5		)	(5		)		(10		)	(10		)
Total net investment income	$	121		$	121		$	121		$	117		$	115		$	121			$	242		$	236
Annualized investment yield, before tax [4]	4.2		%	4.2		%	4.2		%	4.1		%	4.1		%	4.3		%		4.2		%	4.2		%
Annualized limited partnerships and other alternative investment yield, before tax [4]	14.0		%	15.6		%	17.2		%	15.4		%	10.6		%	28.3		%		15.2		%	19.7		%
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]*	3.9		%	3.9		%	3.9		%	3.9		%	3.9		%	3.8		%		3.9		%	3.9		%
Annualized investment yield, net of tax [4]	3.4		%	3.4		%	3.4		%	3.4		%	3.4		%	3.5		%		3.4		%	3.4		%
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]*	3.2		%	3.2		%	3.2		%	3.2		%	3.3		%	3.2		%		3.2		%	3.2		%
Average reinvestment rate [5]	3.8		%	4.0		%	4.3		%	4.1		%	4.2		%	3.9		%		3.9		%	4.1		%
Average sales/maturities yield [6]	4.2		%	4.0		%	3.9		%	3.6		%	3.8		%	3.0		%		4.1		%	3.2		%
Portfolio duration (in years) [7]	5.9			5.8			5.7			6.1			6.0			6.1				5.9			6.0

Footnotes [1] through [7] are explained on page 25.

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

27

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NET INVESTMENT INCOME

CONSOLIDATED

	THREE MONTHS ENDED																			SIX MONTHS ENDED
Net Investment Income by Segment	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Jun 30 2019			Jun 30 2018
Net Investment Income
Commercial Lines	$	281		$	259		$	247		$	250		$	242		$	258			$	540		$	500
Personal Lines	46			42			39			39			37			40				88			77
P&C Other Operations	21			22			22			22			22			24				43			46
Total Property & Casualty	$	348		$	323		$	308		$	311		$	301		$	322			$	671		$	623
Group Benefits	121			121			121			117			115			121				242			236
Hartford Funds	2			2			2			1			1			1				4			2
Corporate	17			24			26			15			11			7				41			18
Total net investment income by segment	$	488		$	470		$	457		$	444		$	428		$	451			$	958		$	879
	THREE MONTHS ENDED																			SIX MONTHS ENDED
Net Investment Income From Limited Partnerships and Other Alternative Investments	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Jun 30 2019			Jun 30 2018
Total Property & Casualty	$	50		$	46		$	37		$	35		$	33		$	58			$	96		$	91
Group Benefits	10			10			11			10			6			15				20			21
Total net investment income from limited partnerships and other alternative investments [1]	$	60		$	56		$	48		$	45		$	39		$	73			$	116		$	112

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

28

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMPONENTS OF NET REALIZED CAPITAL GAINS (LOSSES)

CONSOLIDATED

	THREE MONTHS ENDED																			SIX MONTHS ENDED
	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Jun 30 2019			Jun 30 2018
Net Realized Capital Gains (Losses)
Gross gains on sales	$	69		$	44		$	23		$	26		$	46		$	19			$	113		$	65
Gross losses on sales	(19		)	(21		)	(43		)	(41		)	(31		)	(57		)		(40		)	(88		)
Equity securities [1]	30			132			(136		)	46			26			16				162			42
Net impairment losses	—			(2		)	—			(1		)	—			—				(2		)	—
Valuation allowances on mortgage loans	1			—			—			—			—			—				1			—
Transactional foreign currency revaluation	—			—			—			—			—			1				—			1
Non-qualifying foreign currency derivatives	(1		)	1			1			1			4			(3		)		—			1
Other net gains (losses) [2] [3]	—			9			(17		)	7			7			(6		)		9			1
Total net realized capital gains (losses)	80			163			(172		)	38			52			(30		)		243			22
Net realized capital gains, included in core earnings, before tax	(1		)	(3		)	(3		)	(1		)	(2		)	—				(4		)	(2		)
Total net realized capital gains (losses) excluded from core earnings, before tax	79			160			(175		)	37			50			(30		)		239			20
Income tax benefit (expense) related to net realized capital gains (losses) excluded from core earnings	(18		)	(34		)	38			(8		)	(10		)	5				(52		)	(5		)
Total net realized capital gains (losses) excluded from core earnings	$	61		$	126		$	(137	)	$	29		$	40		$	(25	)		$	187		$	15

[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 and interest rate derivatives used to manage duration.

[3] Includes periodic net coupon settlements on credit derivatives which are included in core earnings.

29

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMPOSITION OF INVESTED ASSETS

CONSOLIDATED

	Jun 30 2019					Mar 31 2019					Dec 31 2018					Sept 30 2018					Jun 30 2018
	Amount [1]			Percent		Amount			Percent		Amount [1]			Percent		Amount			Percent		Amount			Percent
Total investments	$	50,769		100.0	%	$	47,895		100.0	%	$	46,790		100.0	%	$	46,134		100.0	%	$	45,648		100.0	%
Asset-backed securities	$	1,029		2.5	%	$	968		2.6	%	$	1,276		3.6	%	$	1,191		3.3	%	$	994		2.7	%
Collateralized loan obligations	1,925			4.7	%	1,438			3.9	%	1,437			4.0	%	1,326			3.7	%	1,089			3.0	%
Commercial mortgage-backed securities	3,905			9.5	%	3,568			9.7	%	3,552			9.9	%	3,657			10.2	%	3,494			9.7	%
Corporate	16,748			40.7	%	14,403			39.1	%	13,398			37.6	%	13,492			37.3	%	13,349			36.9	%
Foreign government/government agencies	1,072			2.6	%	882			2.4	%	847			2.4	%	952			2.6	%	1,133			3.1	%
Municipal [2]	10,278			25.0	%	10,346			28.1	%	10,346			29.1	%	10,602			29.3	%	11,142			30.8	%
Residential mortgage-backed securities	4,566			11.0	%	3,548			9.7	%	3,279			9.2	%	3,118			8.5	%	3,207			8.9	%
U.S. Treasuries	1,643			4.0	%	1,666			4.5	%	1,517			4.2	%	1,828			5.1	%	1,786			4.9	%
Total fixed maturities, available-for-sale	$	41,166		100.0	%	$	36,819		100.0	%	$	35,652		100.0	%	$	36,166		100.0	%	$	36,194		100.0	%
U.S. government/government agencies	$	5,714		13.9	%	$	4,847		13.2	%	$	4,430		12.4	%	$	4,735		13.1	%	$	4,722		13.0	%
AAA	6,214			15.1	%	6,160			16.7	%	6,440			18.1	%	6,379			17.6	%	6,027			16.7	%
AA	7,890			19.1	%	7,016			19.0	%	6,985			19.6	%	7,085			19.6	%	7,096			19.6	%
A	10,552			25.6	%	8,871			24.1	%	8,370			23.5	%	8,543			23.6	%	8,846			24.4	%
BBB	9,246			22.5	%	8,530			23.2	%	8,163			22.9	%	8,232			22.8	%	8,157			22.5	%
BB	1,076			2.6	%	926			2.5	%	794			2.2	%	721			2.0	%	822			2.3	%
B	445			1.1	%	429			1.2	%	448			1.2	%	446			1.2	%	498			1.4	%
CCC	27			0.1	%	29			0.1	%	21			0.1	%	23			0.1	%	23			0.1	%
CC & below	2			—	%	11			—	%	1			—	%	2			—	%	3			—	%
Total fixed maturities, available-for-sale	$	41,166		100.0	%	$	36,819		100.0	%	$	35,652		100.0	%	$	36,166		100.0	%	$	36,194		100.0	%

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

[2] Primarily comprised of $7.6 billion in Property & Casualty, $2.5 billion in Group Benefits, and $0.2 in Corporate as of June 30, 2019.

30

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTED ASSET EXPOSURES

JUNE 30, 2019

	Cost or Amortized Cost			Fair Value			Percent of Total Invested Assets
Top Ten Corporate Fixed Maturity, AFS and Equity Exposures by Sector
Financial services	$	4,127		$	4,253		8.4	%
Technology and communications	2,595			2,736			5.4	%
Consumer non-cyclical	2,432			2,523			5.0	%
Utilities	2,125			2,215			4.3	%
Capital goods	1,557			1,611			3.2	%
Energy [1]	1,432			1,501			2.9	%
Consumer cyclical	1,176			1,213			2.4	%
Basic industry	698			723			1.4	%
Transportation	670			699			1.4	%
Other	799			807			1.6	%
Total	$	17,611		$	18,281		36.0	%
Top Ten Exposures by Issuer [2]
New York State Dormitory Authority	$	249		$	263		0.5	%
Wells Fargo & Company	229			233			0.5	%
New York City Transitional Finance Authority	210			220			0.4	%
Commonwealth of Massachusetts	197			212			0.4	%
Comcast Corporation	190			207			0.4	%
IBM Corporation	198			206			0.4	%
Massachusetts St. Development Finance Agency	182			193			0.4	%
New York City Municipal Water Finance Authority	180			192			0.4	%
Apple Inc.	179			191			0.4	%
Goldman Sachs Group, Inc	183			188			0.3	%
Total	$	1,997		$	2,105		4.1	%

[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.

31

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 (previously known as "Mutual 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 and 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 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), transaction expenses incurred in connection with an acquisition, purchase accounting adjustments related to goodwill and other expenses not allocated to the reporting segments. Corporate also includes investment management fees and expenses related to managing third party business, including management of the invested assets of Talcott Resolution Life, Inc. and its subsidiaries ("Talcott Resolution"). Talcott Resolution is the new holding company of the life and annuity business that we sold in May 2018. In addition, Corporate includes a 9.7% ownership interest in the legal entity that acquired the life and annuity business sold.

Certain operating and statistical measures for P&C standard commercial lines (small commercial and middle market lines within middle & large commercial) and for Personal Lines have been incorporated herein to provide supplemental data that indicate current trends in the Company's business. These measures include sales, redemptions, net flows, account value, policies in-force, new business, premium retention, policy count retention and renewal earned and written price increases. Premium retention is defined as renewal premium written in the current period divided by total premium written in the prior period. Policy count retention represents the ratio of the number of policies renewed during the period divided by the number of policies from the previous policy term period. Renewal earned price increases represent the portions of the prior and current period renewal written price increases that have been earned based on the period of time the underlying renewal policies have been in effect. Renewal written price increases for Commercial Lines represent the combined effect of rate changes, amount of insurance and individual risk pricing decisions per unit of exposure since the prior year on policies that renewed and includes the combined effect of rate changes, amount of insurance and other changes in exposure. For Personal Lines, renewal written price increases represent the total change in premium per policy since the prior year on those policies that renewed and includes the combined effect of rate changes, amount of insurance and other changes in exposure. For Personal Lines, other changes in exposure include, but are not limited to, the effect of changes in number of drivers, vehicles and incidents, as well as changes in customer policy elections, such as deductibles and limits.

The Company, along with others in the property and casualty insurance industry, uses underwriting ratios as measures of performance. The loss and loss adjustment expense ratio is the ratio of losses and loss adjustment expenses to earned premiums. The expense ratio is the ratio of underwriting expenses (amortization of deferred policy acquisition costs and insurance operating costs and expenses, including certain centralized services and bad debt expense, and excluding integration and transaction costs associated with an acquired business) less fee income to earned premiums. 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 catastrophe ratio (a component of the loss ratio) represents the ratio of catastrophe losses and loss adjustment expenses 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.

The Company, along with others in the insurance industry, uses underwriting ratios as measures of the Group Benefits segment's performance. The loss ratio is the ratio of benefits, losses and loss adjustment expenses to premiums and other considerations, excluding buyout premiums. The expense ratio is the ratio of insurance operating costs and other expenses (excluding integration and transaction costs associated with an acquired business) to premiums and other considerations, excluding buyout premiums. Buyout premiums represent takeover of open claim liabilities and other non-recurring premium amounts.

A catastrophe is a severe loss, resulting from natural or manmade events, including risks such as fire, earthquake, windstorm, explosion, terrorist attack 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 earnings or 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.

32

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.

The Company uses the non-GAAP financial measure core earnings as an important measure of the Company's operating performance. The Company believes that core earnings provides investors with a valuable measure of the underlying performance of the Company’s businesses because it reveals trends in our insurance and financial services businesses that may be obscured by including the net effect of certain realized capital gains and losses, integration and transaction costs in connection with an acquired business, loss on extinguishment of debt, gains and losses on reinsurance transactions, change in loss reserves upon acquisition of a business, income tax benefit from reduction in deferred income tax valuation allowance, and results of discontinued operations. Some realized capital gains and losses are primarily driven by investment decisions and external economic developments, the nature and timing of which are unrelated to the insurance and underwriting aspects of our business. Accordingly, core earnings excludes the effect of all realized gains and losses (net of tax) that tend to be highly variable from period to period based on capital market conditions. The Company believes, however, that some realized capital gains and losses are integrally related to our insurance operations, so core earnings includes net realized gains and losses such as net periodic settlements on credit derivatives. These net realized gains and losses are directly related to an offsetting item included in the income statement such as net investment income. Core earnings are net of preferred stock dividends declared since they 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. Results from discontinued operations are excluded from core earnings for businesses held for sale because such results could obscure trends in our ongoing businesses that are valuable to our investors' ability to assess the Company's financial performance. Net income (loss), net income (loss) available to common stockholders and income from continuing operations, net of tax, available to common stockholders (during periods when the Company reports significant discontinued operations) are the most directly comparable U.S. GAAP measures to core earnings. Income from continuing operations, net of tax, available to common stockholders is net income (loss) available to common stockholders, excluding the income (loss) from discontinued operations, net of tax. Core earnings should not be considered as a substitute for net income (loss), net income (loss) available to common stockholders or income (loss) from continuing operations, net of tax, available to common stockholders 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), net income (loss) available to common stockholders, income (loss) from continuing operations, net of tax, 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 is calculated based on the non-GAAP financial measure core earnings. The Company believes that the measure core earnings per share provides investors with a valuable measure of the Company's operating performance for many of 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") and income (loss) from continuing operations, net of tax, available to common stockholders per share are 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 or income (loss) from continuing operations, net of tax, available to common stockholders 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, income (loss) from continuing operations, net of tax, available to common stockholders per share and core earnings per share when reviewing our performance.

Book value per diluted share is a U.S. GAAP financial measure that represents a per share assessment of the value of a company's equity. It is calculated by dividing (a) common stockholders' equity by (b) common shares outstanding and dilutive potential common shares. The Company provides book value per diluted share to enable investors to assess the value of the Company’s equity. 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.

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) core earnings for the prior four fiscal quarters by (b) average common stockholders' equity, excluding AOCI. Net income (loss) available to common stockholders' ROE ("Net income (loss) ROE") is the most directly comparable U.S. GAAP measure. Net income (loss) ROE is calculated by dividing (a) net income (loss) available to common stockholders for the prior four fiscal quarters by (b) average common stockholders' equity, including AOCI. ROEs at the segment level and for consolidated, represent a levered view of ROE with debt financing and related interest expense attributed to the businesses consistent with the overall average debt to capitalization ratios of the consolidated entity. Similarly, in this levered view of ROE, preferred stock and related preferred dividends are attributed to the businesses. 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 investors with return on equity measures based on its non-GAAP core earnings financial measures for the reasons set forth in the related discussion above.

A reconciliation of Net income (loss) ROE to Core earnings ROE is set forth below:

	LAST TWELVE MONTHS ENDED
	Jun 30 2019		Mar 31 2019		Dec 31 2018		Sept 30 2018		Jun 30 2018		Mar 31 2018
Net income (loss) ROE	11.8	%	13.5	%	13.7	%	(14.0	%)	(15.4	%)	(19.3	%)
Adjustments to reconcile net income (loss) ROE to core earnings ROE:
Net realized capital losses (gains), excluded from core earnings, before tax	(0.7	%)	(0.5	%)	0.9	%	(0.8	%)	(0.7	%)	(0.7	%)
Loss on reinsurance transaction, before tax	0.7	%	—	%	—	%	—	%	—	%	—	%
Pension settlement, before tax	—	%	—	%	—	%	—	%	—	%	5.0	%
Integration and transaction costs associated with an acquired business, before tax	0.5	%	0.3	%	0.4	%	0.3	%	0.3	%	0.2	%
Changes in loss reserves upon acquisition of a business, before tax	0.7	%	—	%	—	%	—	%	—	%	—	%
Income tax expense (benefit) on items not included in core earnings	(0.5	%)	(0.3	%)	(0.6	%)	6.1	%	6.1	%	4.3	%
Loss (income) from discontinued operations, net of tax	—	%	(1.1	%)	(2.5	%)	18.8	%	18.4	%	18.4	%
Impact of AOCI, excluded from denominator of core earnings ROE	(0.8	%)	(0.4	%)	(0.3	%)	(0.1	%)	(0.3	%)	(0.1	%)
Core earnings ROE	11.7	%	11.5	%	11.6	%	10.3	%	8.4	%	7.8	%

33

The Company evaluates profitability of the individual P&C businesses primarily on the basis of underwriting gain (loss). Underwriting gain (loss) is a before tax measure that represents earned premiums less incurred losses, loss adjustment expenses and underwriting expenses and policyholder dividends. Underwriting gain (loss) is influenced significantly by earned premium growth and the adequacy of the Company's pricing. Underwriting profitability over time is also greatly influenced by the Company's pricing and underwriting discipline, which seeks to manage exposure to loss through favorable risk selection and diversification, its management of claims, its use of reinsurance and its ability to manage its expense ratio, which it accomplishes through its management of acquisition costs and other underwriting expenses. Net income (loss) is the most directly comparable U.S. GAAP measure. The Company believes that underwriting gain (loss) provides investors with a valuable measure of before tax profitability 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) represents underwriting gain (loss) before current accident year catastrophes, prior accident year development 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. The changes to loss reserves upon acquisition of a business are 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 is set forth below.

PROPERTY & CASUALTY

	THREE MONTHS ENDED																			SIX MONTHS ENDED
	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Jun 30 2019			Jun 30 2018
Net income	$	264		$	482		$	59		$	349		$	383		$	404			$	746		$	787
Adjustments to reconcile net income to underlying underwriting gain (loss):
Net investment income	(348		)	(323		)	(308		)	(311		)	(301		)	(322		)		(671		)	(623		)
Net realized capital losses (gains)	(66		)	(143		)	132			(37		)	(50		)	9				(209		)	(41		)
Net servicing and other expense (income)	2			(2		)	1			(7		)	(3		)	(5		)		—			(8		)
Loss on reinsurance transaction	91			—			—			—			—			—				91			—
Income tax expense (benefit)	60			107			(10		)	76			83			92				167			175
Underwriting gain (loss)	3			121			(126		)	70			112			178				124			290
Current accident year catastrophes	138			104			361			169			188			103				242			291
Prior accident year development	35			(11		)	(28		)	(60		)	(47		)	(32		)		24			(79		)
Current accident year change in loss reserves upon acquisition of a business	29			—			—			—			—			—				29			—
Underlying underwriting gain	$	205		$	214		$	207		$	179		$	253		$	249			$	419		$	502

COMMERCIAL LINES

	THREE MONTHS ENDED																			SIX MONTHS ENDED
	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Jun 30 2019			Jun 30 2018
Net income	$	191		$	363		$	253		$	289		$	372		$	298			$	554		$	670
Adjustments to reconcile net income to underlying underwriting gain (loss):
Net servicing loss (income)	(2		)	1			(2		)	1			(1		)	—				(1		)	(1		)
Net investment income	(281		)	(259		)	(247		)	(250		)	(242		)	(258		)		(540		)	(500		)
Net realized capital losses (gains)	(54		)	(115		)	106			(29		)	(42		)	8				(169		)	(34		)
Other expense (income)	6			1			3			(2		)	3			(2		)		7			1
Loss on reinsurance transaction	91			—			—			—			—			—				91			—
Income tax expense	44			79			55			61			83			68				123			151
Underwriting gain (loss)	(5		)	70			168			70			173			114				65			287
Current accident year catastrophes	90			70			37			95			74			69				160			143
Prior accident year development	22			(10		)	(55		)	(53		)	(73		)	(19		)		12			(92		)
Current accident year change in loss reserves upon acquisition of a business	29			—			—			—			—			—				29			—
Underlying underwriting gain	$	136		$	130		$	150		$	112		$	174		$	164			$	266		$	338

34

PERSONAL LINES

	THREE MONTHS ENDED																			SIX MONTHS ENDED
	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Jun 30 2019			Jun 30 2018
Net income (loss)	$	62		$	96		$	(178	)	$	51		$	6		$	89			$	158		$	95
Adjustments to reconcile net income (loss) to underlying underwriting gain (loss):
Net servicing income	(4		)	(3		)	(3		)	(5		)	(4		)	(4		)		(7		)	(8		)
Net investment income	(46		)	(42		)	(39		)	(39		)	(37		)	(40		)		(88		)	(77		)
Net realized capital losses (gains)	(8		)	(19		)	17			(5		)	(5		)	—				(27		)	(5		)
Other expense (income)	2			(1		)	2			(1		)	(1		)	1				1			—
Income tax expense (benefit)	14			23			(52		)	13			(1		)	21				37			20
Underwriting gain (loss)	20			54			(253		)	14			(42		)	67				74			25
Current accident year catastrophes	48			34			324			74			114			34				82			148
Prior accident year development	4			(1		)	(11		)	(18		)	10			(13		)		3			(3		)
Underlying underwriting gain	$	72		$	87		$	60		$	70		$	82		$	88			$	159		$	170

Underlying combined ratio is a non-GAAP financial measure that 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 Company believes this ratio is an important measure of the trend in profitability since it removes the impact of volatile and unpredictable catastrophe losses, prior accident year loss and loss adjustment expense reserve development and change in loss reserves upon acquisition of a business. A reconciliation of the combined ratio to the underlying combined ratio for Property & Casualty, Commercial Lines, and Personal Lines is set forth on pages 9, 12 and 16, respectively.

Core earnings margin is a non-GAAP financial measure that the Company uses to evaluate, and believes is an important measure of, the Group Benefits segment's operating performance. Core earnings margin is calculated by dividing (a) core earnings by (b) revenues excluding buyouts and realized gains (losses). Net income margin 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). 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.

Return on Assets ("ROA"), core earnings, is a non-GAAP financial measure that the Company uses to evaluate, and believes is an important measure of, the Hartford Funds segment’s operating performance. 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 businesses that may be obscured by the effect of realized gains (losses). 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, core earnings, and ROA when reviewing the Hartford Funds segment performance. ROA, core earnings is calculated by dividing (a) core earnings by (b) a daily average AUM.

35

Net investment income, excluding limited partnerships and other alternative investments is the amount of net investment income 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 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. Net investment income is the most directly comparable GAAP measure.

CONSOLIDATED

	THREE MONTHS ENDED																			SIX MONTHS ENDED
	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Jun 30 2019			Jun 30 2018
Total net investment income	$	488		$	470		$	457		$	444		$	428		$	451			$	958		$	879
Limited partnerships and other alternative investments ("Limited Partnerships")	(60		)	(56		)	(48		)	(45		)	(39		)	(73		)		(116		)	(112		)
Net investment income excluding limited partnerships and other alternative investments	$	428		$	414		$	409		$	399		$	389		$	378			$	842		$	767

PROPERTY & CASUALTY

	THREE MONTHS ENDED																			SIX MONTHS ENDED
	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Jun 30 2019			Jun 30 2018
Total net investment income	$	348		$	323		$	308		$	311		$	301		$	322			$	671		$	623
Limited partnerships and other alternative investments	(50		)	(46		)	(37		)	(35		)	(33		)	(58		)		(96		)	(91		)
Net investment income excluding limited partnerships and other alternative investments	$	298		$	277		$	271		$	276		$	268		$	264			$	575		$	532

GROUP BENEFITS

	THREE MONTHS ENDED																			SIX MONTHS ENDED
	Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Jun 30 2019			Jun 30 2018
Total net investment income	$	121		$	121		$	121		$	117		$	115		$	121			$	242		$	236
Limited partnerships and other alternative investments	(10		)	(10		)	(11		)	(10		)	(6		)	(15		)		(20		)	(21		)
Net investment income excluding limited partnerships and other alternative investments	$	111		$	111		$	110		$	107		$	109		$	106			$	222		$	215

36

Annualized investment yield, excluding limited partnerships and other alternative investments, is the annualized net investment income excluding limited partnerships and other alternative investments divided by the monthly average invested assets at amortized cost, excluding repurchase agreement and securities lending collateral, derivatives book value, and limited partnership and other alternative invested assets. The company believes that annualized net investment income, 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.

CONSOLIDATED

	THREE MONTHS ENDED													SIX MONTHS ENDED
	Jun 30 2019		Mar 31 2019		Dec 31 2018		Sept 30 2018		Jun 30 2018		Mar 31 2018			Jun 30 2019		Jun 30 2018
Annualized investment yield	4.2	%	4.1	%	4.0	%	4.0	%	3.9	%	4.2	%		4.1	%	4.1	%
Limited partnerships and other alternative investments	(0.4	)%	(0.4	)%	(0.3	)%	(0.3	)%	(0.2	)%	(0.5	)%		(0.3	)%	(0.4	)%
Annualized investment yield excluding limited partnerships and other alternative investments	3.8	%	3.7	%	3.7	%	3.7	%	3.7	%	3.7	%		3.8	%	3.7	%

PROPERTY & CASUALTY

	THREE MONTHS ENDED													SIX MONTHS ENDED
	Jun 30 2019		Mar 31 2019		Dec 31 2018		Sept 30 2018		Jun 30 2018		Mar 31 2018			Jun 30 2019		Jun 30 2018
Annualized investment yield	4.2	%	4.2	%	4.0	%	4.1	%	4.0	%	4.3	%		4.2	%	4.2	%
Limited partnerships and other alternative investments	(0.4	)%	(0.4	)%	(0.3	)%	(0.3	)%	(0.2	)%	(0.6	)%		(0.4	)%	(0.5	)%
Annualized investment yield excluding limited partnerships and other alternative investments	3.8	%	3.8	%	3.7	%	3.8	%	3.8	%	3.7	%		3.8	%	3.7	%

GROUP BENEFITS

	THREE MONTHS ENDED													SIX MONTHS ENDED
	Jun 30 2019		Mar 31 2019		Dec 31 2018		Sept 30 2018		Jun 30 2018		Mar 31 2018			Jun 30 2019		Jun 30 2018
Annualized investment yield	4.2	%	4.2	%	4.2	%	4.1	%	4.1	%	4.3	%		4.2	%	4.2	%
Limited partnerships and other alternative investments	(0.3	)%	(0.3	)%	(0.3	)%	(0.2	)%	(0.2	)%	(0.5	)%		(0.3	)%	(0.3	)%
Annualized investment yield excluding limited partnerships and other alternative investments	3.9	%	3.9	%	3.9	%	3.9	%	3.9	%	3.8	%		3.9	%	3.9	%

37