EX-99.2 3 ex992ifs9302019.htm EXHIBIT 99.2

Exhibit

INVESTOR FINANCIAL SUPPLEMENT

September 30, 2019

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

		As of November 1, 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
Contact:		Commercial paper		AMB-1		A-2		P-2
Susan Spivak Bernstein		Preferred stock		bbb		BBB-		Baa3
Senior Vice President		Junior subordinated debentures		bbb		BBB-		Baa2
Investor Relations
Phone (860) 547-6233
		- Hartford Financial Services Group, Inc. senior debt and junior subordinated debentures are on stable outlook at A.M. Best, Standard and Poor’s, and Moody's.
		TRANSFER AGENT
		Stockholder correspondence should be mailed to:		Overnight correspondence should be mailed to:
		Computershare		Computershare
		P.O. Box 505000		462 South 4th Street, Suite 1600
		Louisville, KY 40233		Louisville, KY 40202

Common stock and preferred stock of The Hartford Financial Services Group, Inc. are traded on the New York Stock Exchange under the symbols “HIG” and "HIG 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																						NINE MONTHS ENDED
	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Sept 30 2019			Sept 30 2018
HIGHLIGHTS
Income from continuing operations, net of tax, available to common stockholders [1]	$	524		$	372		$	625		$	190		$	427		$	434		$	428			$	1,521		$	1,289
Net income	$	535		$	372		$	630		$	196		$	432		$	582		$	597			$	1,537		$	1,611
Net income available to common stockholders	$	524		$	372		$	625		$	190		$	432		$	582		$	597			$	1,521		$	1,611
Core earnings *	$	548		$	485		$	507		$	284		$	418		$	412		$	461			$	1,540		$	1,291
Total revenues	$	5,347		$	5,092		$	4,940		$	4,633		$	4,842		$	4,789		$	4,691			$	15,379		$	14,322
Total assets	$70,256			$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]	$	1.45		$	1.03		$	1.74		$	0.53		$	1.19		$	1.21		$	1.20			$	4.21		$	3.60
Net income available to common stockholders	$	1.45		$	1.03		$	1.74		$	0.53		$	1.20		$	1.62		$	1.67			$	4.21		$	4.50
Core earnings*	$	1.52		$	1.34		$	1.41		$	0.79		$	1.17		$	1.15		$	1.29			$	4.27		$	3.61
Diluted earnings per common share
Income from continuing operations, net of tax, available to common stockholders [1]	$	1.43		$	1.02		$	1.71		$	0.52		$	1.17		$	1.19		$	1.18			$	4.17		$	3.54
Net income available to common stockholders	$	1.43		$	1.02		$	1.71		$	0.52		$	1.19		$	1.60		$	1.64			$	4.17		$	4.42
Core earnings*	$	1.50		$	1.33		$	1.39		$	0.78		$	1.15		$	1.13		$	1.27			$	4.22		$	3.55
Weighted average common shares outstanding (basic)	361.4			361.4			360.0			359.1			358.6			358.3			357.5				361.0			358.1
Dilutive effect of stock compensation	4.0			3.2			3.3			3.2			3.6			4.0			4.4				3.4			4.0
Dilutive effect of warrants [2]	—			0.5			1.4			1.7			1.9			1.9			2.0				0.7			2.0
Weighted average common shares outstanding and dilutive potential common shares (diluted)	365.4			365.1			364.7			364.0			364.1			364.2			363.9				365.1			364.1
Common shares outstanding	361.0			361.6			360.9			359.2			358.7			358.4			358.1
Book value per common share	$	43.61		$	41.37		$	38.81		$	35.54		$	35.49		$	35.01		$	36.70
Per common share impact of accumulated other comprehensive income [3]	$	0.59		$	(0.54	)	$	(2.45	)	$	(4.40	)	$	(4.23	)	$	(3.77	)	$	(0.67	)
Book value per common share (excluding AOCI)*	$	43.02		$	41.91		$	41.26		$	39.94		$	39.72		$	38.78		$	37.37
Book value per diluted share	$	43.13		$	41.00		$	38.36		$	35.06		$	34.95		$	34.44		$	36.06
Per diluted share impact of AOCI	$	0.58		$	(0.55	)	$	(2.43	)	$	(4.34	)	$	(4.17	)	$	(3.71	)	$	(0.65	)
Book value per diluted share (excluding AOCI)*	$	42.55		$	41.55		$	40.79		$	39.40		$	39.12		$	38.15		$	36.71
Common shares outstanding and dilutive potential common shares	365.0			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")	12.0		%	11.8		%	13.5		%	13.7		%	(14.0		%)	(15.4		%)	(19.3		)%
Core earnings ROE*	12.3		%	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																						NINE MONTHS ENDED
	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Sept 30 2019			Sept 30 2018
Earned premiums	$	4,394		$	4,166		$	3,940		$	3,997		$	3,987		$	3,958		$	3,927			$	12,500		$	11,872
Fee income	330			326			314			319			344			327			323				970			994
Net investment income	490			488			470			457			444			428			451				1,448			1,323
Realized capital gains (losses):
Total other-than-temporary impairment (“OTTI”) losses	(1		)	—			(4		)	(1		)	(4		)	—			(2		)		(5		)	(6		)
OTTI losses recognized in other comprehensive income	—			—			2			1			3			—			2				2			5
Net OTTI losses recognized in earnings	(1		)	—			(2		)	—			(1		)	—			—				(3		)	(1		)
Other net realized capital gains (losses)	90			80			165			(172		)	39			52			(30		)		335			61
Total net realized capital gains (losses)	89			80			163			(172		)	38			52			(30		)		332			60
Other revenues	44			32			53			32			29			24			20				129			73
Total revenues	5,347			5,092			4,940			4,633			4,842			4,789			4,691				15,379			14,322
Benefits, losses and loss adjustment expenses	2,914			2,934			2,685			2,946			2,786			2,738			2,695				8,533			8,219
Amortization of deferred acquisition costs ("DAC")	437			392			355			350			348			344			342				1,184			1,034
Insurance operating costs and other expenses	1,167			1,141			1,048			1,086			1,091			1,067			1,037				3,356			3,195
Loss on extinguishment of debt [1]	90			—			—			—			—			6			—				90			6
Loss on reinsurance transaction	—			91			—			—			—			—			—				91			—
Interest expense	67			63			64			70			69			79			80				194			228
Amortization of other intangible assets	19			15			13			14			18			18			18				47			54
Total benefits, losses and expenses	4,694			4,636			4,165			4,466			4,312			4,252			4,172				13,495			12,736
Income from continuing operations, before tax	653			456			775			167			530			537			519				1,884			1,586
Income tax expense (benefit)	118			84			145			(29		)	103			103			91				347			297
Income from continuing operations, net of tax	535			372			630			196			427			434			428				1,537			1,289
Income from discontinued operations, net of tax	—			—			—			—			5			148			169				—			322
Net income	535			372			630			196			432			582			597				1,537			1,611
Preferred stock dividends [2]	11			—			5			6			—			—			—				16			—
Net income available to common stockholders	524			372			625			190			432			582			597				1,521			1,611
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax	(88		)	(79		)	(160		)	175			(37		)	(50		)	30				(327		)	(57		)
Loss on extinguishment of debt, before tax	90			—			—			—			—			6			—				90			6
Loss on reinsurance transaction, before tax	—			91			—			—			—			—			—				91			—
Integration and transaction costs associated with acquired business, before tax [3]	29			31			10			12			12			11			12				70			35
Change in loss reserves upon acquisition of a business, before tax [4]	—			97			—			—			—			—			—				97			—
Income tax expense (benefit) [5]	(7		)	(27		)	32			(93		)	16			11			(9		)		(2		)	18
Income from discontinued operations, net of tax	—			—			—			—			(5		)	(148		)	(169		)		—			(322		)
Core earnings	$	548		$	485		$	507		$	284		$	418		$	412		$	461			$	1,540		$	1,291

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

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

[3] The three and nine month periods ended September 30, 2019 included Navigators Group acquisition transaction expenses of $1 and $16, respectively, Navigators integration costs of $19 and $26, respectively and integration costs related to the 2017 acquisition of Aetna's group benefits business of $9 and $28, respectively. Periods prior to the second quarter of 2019 represent integration costs related to the 2017 acquisition of Aetna's group benefits business.

[4] Included in net income for the three months ended June 30, 2019 and nine months ended September 30, 2019 was $68 of prior accident year reserve increases and $29 of current accident year reserve increases upon acquisition of Navigators Group and a review of Navigators Insurers reserves.

[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																						NINE MONTHS ENDED
	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Sept 30 2019			Sept 30 2018
Net income (loss):
Commercial Lines	$	336		$	191		$	363		$	253		$	289		$	372		$	298			$	890		$	959
Personal Lines	94			62			96			(178		)	51			6			89				252			146
P&C Other Operations	18			11			23			(16		)	9			5			17				52			31
Property & Casualty ("P&C")	448			264			482			59			349			383			404				1,194			1,136
Group Benefits	146			113			118			113			77			96			54				377			227
Hartford Funds	40			38			30			36			41			37			34				108			112
Sub-total	634			415			630			208			467			516			492				1,679			1,475
Corporate [1]	(99		)	(43		)	—			(12		)	(35		)	66			105				(142		)	136
Net income	535			372			630			196			432			582			597				1,537			1,611
Preferred stock dividends	11			—			5			6			—			—			—				16			—
Net income available to common stockholders	$	524		$	372		$	625		$	190		$	432		$	582		$	597			$	1,521		$	1,611
Core earnings (losses):
Commercial Lines	$	303		$	304		$	274		$	337		$	265		$	341		$	302			$	881		$	908
Personal Lines	87			55			82			(166		)	47			2			89				224			138
P&C Other Operations	15			8			16			(15		)	8			3			17				39			28
P&C	405			367			372			156			320			346			408				1,144			1,074
Group Benefits	141			115			122			136			102			104			85				378			291
Hartford Funds	39			38			28			38			41			38			34				105			113
Sub-total	585			520			522			330			463			488			527				1,627			1,478
Corporate	(37		)	(35		)	(15		)	(46		)	(45		)	(76		)	(66		)		(87		)	(187		)
Core earnings	$	548		$	485		$	507		$	284		$	418		$	412		$	461			$	1,540		$	1,291

[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 September 30, 2019, June 30, 2019, March 31, 2019 and December 31, 2018, includes $14, $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
	Sept 30 2019			Dec 31 2018				Sept 30 2019			Dec 31 2018				Sept 30 2019			Dec 31 2018				Sept 30 2019			Dec 31 2018				Sept 30 2019			Dec 31 2018
Investments
Fixed maturities, available-for-sale, at fair value	$	31,270		$	24,763			$	10,495		$	9,876			$	36		$	28			$	588		$	985			$	42,389		$	35,652
Fixed maturities, at fair value using the fair value option	35			16				4			6				—			—				—			—				39			22
Equity securities, at fair value	1,094			920				76			64				44			51				200			179				1,414			1,214
Mortgage loans	2,636			2,603				1,100			1,101				—			—				—			—				3,736			3,704
Limited partnerships and other alternative investments	1,477			1,458				293			265				—			—				—			—				1,770			1,723
Other investments	135			78				8			10				12			—				147			104				302			192
Short-term investments	1,453			1,081				328			398				204			197				942			2,607				2,927			4,283
Total investments [1]	38,100			30,919				12,304			11,720				296			276				1,877			3,875				52,577			46,790
Cash	162			88				37			12				6			7				2			5				207			112
Restricted cash	79			3				4			6				—			—				—			—				83			9
Premiums receivable and agents’ balances	4,104			3,565				476			430				—			—				—			—				4,580			3,995
Reinsurance recoverables [2]	4,766			3,774				244			251				—			—				323			332				5,333			4,357
DAC	714			612				51			52				7			6				—			—				772			670
Deferred income taxes	(219		)	180				(190		)	(26		)		7			7				778			1,087				376			1,248
Goodwill	780			157				723			723				181			180				229			230				1,913			1,290
Property and equipment, net	1,018			826				90			101				14			—				72			79				1,194			1,006
Other intangible assets	587			87				529			559				10			11				—			—				1,126			657
Other assets	1,169			1,013				284			286				88			96				554			778				2,095			2,173
Total assets	$	51,260		$	41,224			$	14,552		$	14,114			$	609		$	583			$	3,835		$	6,386			$	70,256		$	62,307
Unpaid losses and loss adjustment expenses	$	27,897		$	24,584			$	8,291		$	8,445			$	—		$	—			$	—		$	—			$	36,188		$	33,029
Reserves for future policy benefits [2]	—			—				414			427				—			—				231			215				645			642
Other policyholder funds and benefits payable [2]	—			—				464			455				—			—				300			312				764			767
Unearned premiums	6,775			5,239				45			43				—			—				—			—				6,820			5,282
Debt	—			—				—			—				—			—				4,846			4,678				4,846			4,678
Other liabilities	2,244			1,930				386			516				207			203				2,078			2,159				4,915			4,808
Total liabilities	36,916			31,753				9,600			9,886				207			203				7,455			7,364				54,178			49,206
Common stockholders' equity, excluding AOCI	13,089			9,389				4,460			4,303				402			380				(2,421		)	274				15,530			14,346
Preferred stock	—			—				—			—				—			—				334			334				334			334
AOCI, net of tax	1,255			82				492			(75		)		—			—				(1,533		)	(1,586		)		214			(1,579		)
Total stockholders' equity	14,344			9,471				4,952			4,228				402			380				(3,620		)	(978		)		16,078			13,101
Total liabilities and equity	$	51,260		$	41,224			$	14,552		$	14,114			$	609		$	583			$	3,835		$	6,386			$	70,256		$	62,307

[1] Corporate includes fixed maturities, cash, and short-term investments of $1.3 billion and $3.4 billion as of September 30, 2019 and December 31, 2018, respectively, held by the holding company of The Hartford Financial Services Group, Inc. Corporate also includes investments held by Hartford Life and Accident Insurance Company (HLA) that support reserves for run-off structured settlement and terminal funding agreement liabilities.

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

4

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CAPITAL STRUCTURE

	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018
DEBT
Short-term debt	$	500		$	500		$	499		$	413		$	413		$	413		$	413
Senior notes	3,257			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			1,089			1,583
Total debt	$	4,846		$	4,550		$	4,266		$	4,678		$	4,676		$	4,675		$	5,168
STOCKHOLDERS’ EQUITY
Common stockholders' equity, excluding AOCI	$	15,530		$	15,156		$	14,891		$	14,346		$	14,248		$	13,899		$	13,382
Preferred stock	334			334			334			334			—			—			—
AOCI	214			(198		)	(885		)	(1,579		)	(1,519		)	(1,353		)	(239		)
Total stockholders’ equity	$	16,078		$	15,292		$	14,340		$	13,101		$	12,729		$	12,546		$	13,143
CAPITALIZATION
Total capitalization, including AOCI, net of tax	$	20,924		$	19,842		$	18,606		$	17,779		$	17,405		$	17,221		$	18,311
Total capitalization, excluding AOCI, net of tax	$	20,710		$	20,040		$	19,491		$	19,358		$	18,924		$	18,574		$	18,550
DEBT TO CAPITALIZATION RATIOS
Total debt to capitalization, including AOCI	23.2		%	22.9		%	22.9		%	26.3		%	26.9		%	27.1		%	28.2		%
Total debt to capitalization, excluding AOCI	23.4		%	22.7		%	21.9		%	24.2		%	24.7		%	25.2		%	27.9		%
Total debt and preferred stock to capitalization, including AOCI	24.8		%	24.6		%	24.7		%	28.2		%	26.9		%	27.1		%	28.2		%
Total debt and preferred stock to capitalization, excluding AOCI	25.0		%	24.4		%	23.6		%	25.9		%	24.7		%	25.2		%	27.9		%
Total rating agency adjusted debt to capitalization [1] [2]	26.6		%	26.6		%	25.7		%	29.2		%	29.4		%	29.7		%	29.9		%
FIXED CHARGE COVERAGE RATIOS
Total earnings to total fixed charges [3]	9.7:1			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 $1.1 billion and $1.0 billion as of September 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

SEPTEMBER 30, 2019

	P&C			GROUP BENEFITS
U.S. statutory net income [1][5]	$	1,129		$	359
U.S. statutory capital [2][5]	$	9,756		$	2,566
U.S. GAAP adjustments:
DAC	784			51
Non-admitted deferred tax assets [3]	158			172
Deferred taxes [4]	(933		)	(509		)
Goodwill	119			723
Other intangible assets	79			529
Non-admitted assets other than deferred taxes	678			135
Asset valuation and interest maintenance reserve	—			231
Benefit reserves	(56		)	(37		)
Unrealized gains on investments	1,553			679
Other, net	1,015			412
U.S. GAAP stockholders’ equity of U.S. insurance entities [5]	13,153			4,952
U.S. GAAP stockholders’ equity of international subsidiaries as well as goodwill and other intangible assets related to the acquisition of Navigators Group	1,191			—
Total U.S. GAAP stockholders’ equity	$	14,344		$	4,952

[1] Statutory net income is for the nine months ended September 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
	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018
Fixed maturities net unrealized gain	$	1,768		$	1,367		$	703		$	24		$	40		$	211		$	1,349
OTTI losses recognized in AOCI	(3		)	(3		)	(3		)	(4		)	(4		)	(3		)	(5		)
Net gains (losses) on cash flow hedging instruments	17			11			—			(5		)	(17		)	(12		)	(24		)
Total net unrealized gain	$	1,782		$	1,375		$	700		$	15		$	19		$	196		$	1,320
Foreign currency translation adjustments	30			34			31			30			34			33			32
Pension and other postretirement plan adjustments	(1,598		)	(1,607		)	(1,616		)	(1,624		)	(1,572		)	(1,582		)	(1,591		)
Total AOCI	$	214		$	(198	)	$	(885	)	$	(1,579	)	$	(1,519	)	$	(1,353	)	$	(239	)

7

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PROPERTY & CASUALTY

INCOME STATEMENTS

	THREE MONTHS ENDED																						NINE MONTHS ENDED
	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Sept 30 2019			Sept 30 2018
Written premiums	$	3,057		$	2,902		$	2,720		$	2,554		$	2,605		$	2,591		$	2,658			$	8,679		$	7,854
Change in unearned premium reserve	4			114			144			(87		)	(29		)	(10		)	88				262			49
Earned premiums	3,053			2,788			2,576			2,641			2,634			2,601			2,570				8,417			7,805
Fee income	17			19			18			18			19			18			19				54			56
Losses and loss adjustment expenses
Current accident year before catastrophes [1]	1,867			1,696			1,537			1,595			1,620			1,534			1,537				5,100			4,691
Current accident year catastrophes	106			138			104			361			169			188			103				348			460
Prior accident year development [1]	(47		)	35			(11		)	(28		)	(60		)	(47		)	(32		)		(23		)	(139		)
Total losses and loss adjustment expenses	1,926			1,869			1,630			1,928			1,729			1,675			1,608				5,425			5,012
Amortization of DAC	420			375			339			334			332			329			328				1,134			989
Underwriting expenses	567			550			495			516			511			495			470				1,612			1,476
Amortization of other intangible assets	8			4			3			2			3			2			1				15			6
Dividends to policyholders	12			6			6			5			8			6			4				24			18
Underwriting gain (loss)* [2]	137			3			121			(126		)	70			112			178				261			360
Net investment income	358			348			323			308			311			301			322				1,029			934
Net realized capital gains (losses)	73			66			143			(132		)	37			50			(9		)		282			78
Loss on reinsurance transaction	—			(91		)	—			—			—			—			—				(91		)	—
Net servicing and other income (expense)	(14		)	(2		)	2			(1		)	7			3			5				(14		)	15
Income before income taxes	554			324			589			49			425			466			496				1,467			1,387
Income tax expense (benefit)	106			60			107			(10		)	76			83			92				273			251
Net income	448			264			482			59			349			383			404				1,194			1,136
Adjustments to reconcile net income to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax	(72		)	(65		)	(140		)	134			(36		)	(49		)	8				(277		)	(77		)
Loss on reinsurance transaction, before tax	—			91			—			—			—			—			—				91			—
Integration costs, before tax	19			6			1			—			—			—			—				26			—
Change in loss reserves upon acquisition of a business, before tax [1]	—			97			—			—			—			—			—				97			—
Income tax expense (benefit) [3]	10			(26		)	29			(37		)	7			12			(4		)		13			15
Core earnings	$	405		$	367		$	372		$	156		$	320		$	346		$	408			$	1,144		$	1,074
ROE
Net income available to common stockholders [4]	12.0		%	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	(1.6		%)	(1.2		%)	(1.2		%)	0.8		%	(1.7		%)	(1.4		%)	(1.4		)%
Loss on reinsurance transaction, before tax	1.0		%	1.0		%	—		%	—		%	—		%	—		%
Integration and transaction costs associated with an acquired business, before tax	0.3		%	0.1		%	—		%	—		%	—		%	—		%	—		%
Changes in loss reserves upon acquisition of a business, before tax [1]	1.1		%	1.1		%	—		%	—		%	—		%	—		%
Income tax expense (benefit) [3]	(0.3		%)	(0.3		%)	0.1		%	(0.3		%)	1.2		%	1.2		%	1.2		%
Impact of AOCI, excluded from core earnings ROE	0.8		%	0.6		%	0.7		%	0.7		%	0.5		%	0.5		%	0.6		%
Core earnings [4]	13.3		%	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 of $97, the underwriting gain for the nine months ended September 30, 2019 was $358.

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

[4] 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															NINE MONTHS ENDED
	Sept 30 2019		Jun 30 2019		Mar 31 2019		Dec 31 2018		Sept 30 2018		Jun 30 2018		Mar 31 2018			Sept 30 2019		Sept 30 2018
UNDERWRITING GAIN (LOSS)	137		3		121		(126	)	70		112		178			261		360
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1]	61.2		60.8		59.7		60.4		61.5		59.0		59.8			60.6		60.1
Current accident year catastrophes	3.5		4.9		4.0		13.7		6.4		7.2		4.0			4.1		5.9
Prior accident year development [2][4]	(1.5	)	1.3		(0.4	)	(1.1	)	(2.3	)	(1.8	)	(1.2	)		(0.3	)	(1.8	)
Total losses and loss adjustment expenses	63.1		67.0		63.3		73.0		65.6		64.4		62.6			64.5		64.2
Expenses [3]	32.0		32.6		31.8		31.6		31.4		31.1		30.4			32.2		30.9
Policyholder dividends	0.4		0.2		0.2		0.2		0.3		0.2		0.2			0.3		0.2
Combined ratio	95.5		99.9		95.3		104.8		97.3		95.7		93.1			96.9		95.4
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development [2]	(2.0	)	(6.2	)	(3.6	)	(12.6	)	(4.1	)	(5.4	)	(2.8	)		(3.8	)	(4.1	)
Current accident year change in loss reserves upon acquisition of a business	—		(1.1	)	—		—		—		—		—			(0.4	)	—
Underlying combined ratio *	93.6		92.6		91.7		92.2		93.2		90.3		90.3			92.7		91.3

[1] The three months ended June 30, 2019 and nine months ended September 30, 2019 include an increase in loss reserves of $29 upon acquisition of Navigators Group (see [4] on page 2).

[2] The three months ended June 30, 2019 and nine months ended September 30, 2019 include an increase in loss reserves of $68 upon acquisition of Navigators Group (see [4] on page 2).

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

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

	THREE MONTHS ENDED																						NINE MONTHS ENDED
	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Sept 30 2019			Sept 30 2018
Auto liability - Commercial Lines	$	25		$	2		$	—		$	—		$	(5	)	$	(5	)	$	(5	)		$	27		$	(15	)
Auto liability - Personal Lines	(23		)	—			(5		)	(8		)	(10		)	—			—				(28		)	(10		)
Homeowners	(1		)	—			1			(5		)	(7		)	(1		)	(12		)		—			(20		)
Marine	(2		)	10			—			—			—			—							8			—
Professional liability	(1		)	33			—			—			(20		)	6			2				32			(12		)
Package business	(23		)	(14		)	5			(10		)	(9		)	(15		)	8				(32		)	(16		)
General liability	19			37			6			20			4			20			8				62			32
Bond	(2		)	—			—			2			—			—			—				(2		)	—
Assumed Reinsurance	—			3			—			—			—			—			—				3			—
Commercial property	(1		)	(13		)	(2		)	(2		)	2			1			(13		)		(16		)	(10		)
Workers’ compensation	(40		)	(30		)	(20		)	(67		)	(24		)	(48		)	(25		)		(90		)	(97		)
Workers' compensation discount accretion	8			9			8			10			10			10			10				25			30
Catastrophes	(5		)	(14		)	(8		)	(2		)	(13		)	(31		)	(3		)		(27		)	(47		)
Uncollectible reinsurance	—			—			—			—			11			11			—				—			22
Other reserve re-estimates	(1		)	12			4			34			1			5			(2		)		15			4
Total prior accident year development [1]	$	(47	)	$	35		$	(11	)	$	(28	)	$	(60	)	$	(47	)	$	(32	)		$	(23	)	$	(139	)

[1] The prior accident year reserve increase of $68 related to the Navigators Group acquisition for the three months ended June 30, 2019 and nine months ended September 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																						NINE MONTHS ENDED
	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Sept 30 2019			Sept 30 2018
Written premiums	$	2,235		$	2,078		$	1,949		$	1,800		$	1,751		$	1,734		$	1,851			$	6,262		$	5,336
Change in unearned premium reserve	(15		)	91			172			(6		)	(34		)	(11		)	140				248			95
Earned premiums	2,250			1,987			1,777			1,806			1,785			1,745			1,711				6,014			5,241
Fee income	8			9			9			8			9			8			9				26			26
Losses and loss adjustment expenses
Current accident year before catastrophes [1]	1,336			1,179			1,037			1,034			1,055			977			971				3,552			3,003
Current accident year catastrophes	74			90			70			37			95			74			69				234			238
Prior accident year development [1] [2]	(19		)	22			(10		)	(55		)	(53		)	(73		)	(19		)		(7		)	(145		)
Total losses and loss adjustment expenses	1,391			1,291			1,097			1,016			1,097			978			1,021				3,779			3,096
Amortization of DAC	356			310			274			268			264			259			257				940			780
Underwriting expenses	410			392			337			356			353			336			324				1,139			1,013
Amortization of other intangible assets	7			2			2			1			2			1			—				11			3
Dividends to policyholders	12			6			6			5			8			6			4				24			18
Underwriting gain (loss) [3]	82			(5		)	70			168			70			173			114				147			357
Net servicing income (loss)	2			2			(1		)	2			(1		)	1			—				3			—
Net investment income	291			281			259			247			250			242			258				831			750
Net realized capital gains (losses)	60			54			115			(106		)	29			42			(8		)		229			63
Loss on reinsurance transaction	—			(91		)	—			—			—			—			—				(91		)	—
Other income (expense)	(20		)	(6		)	(1		)	(3		)	2			(3		)	2				(27		)	1
Income before income taxes	415			235			442			308			350			455			366				1,092			1,171
Income tax expense	79			44			79			55			61			83			68				202			212
Net income	336			191			363			253			289			372			298				890			959
Adjustments to reconcile net income to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax	(59		)	(54		)	(113		)	108			(28		)	(40		)	6				(226		)	(62		)
Integration costs, before tax [4]	19			6			1			—			—			—							26			—
Change in loss reserves upon acquisition of a business, before tax [1]	—			97			—			—			—			—							97			—
Loss on reinsurance transaction, before tax	—			91			—			—			—			—							91			—
Income tax expense (benefit) [5]	7			(27		)	23			(24		)	4			9			(2		)		3			11
Core earnings	$	303		$	304		$	274		$	337		$	265		$	341		$	302			$	881		$	908

[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] Excluding the non-core change in loss reserves upon acquisition of Navigators Group of $97, underwriting gain for the nine months ended September 30, 2019 was $244.

[4] The three and nine month periods ended September 30, 2019 included Navigators Group integration costs.

[5] 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																						NINE MONTHS ENDED
	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Sept 30 2019			Sept 30 2018
Auto liability	$	25		$	2		$	—		$	—		$	(5	)	$	(5	)	$	(5	)		$	27		$	(15	)
Professional liability	(1		)	33			—			—			(20		)	6			2				32			(12		)
Package business	(23		)	(14		)	5			(10		)	(9		)	(15		)	8				(32		)	(16		)
General liability	19			37			6			20			4			20			8				62			32
Marine	(2		)	10			—			—			—			—							8			—
Bond	(2		)	—			—			2			—			—			—				(2		)	—
Assumed Reinsurance	—			3			—			—			—			—							3			—
Commercial property	(1		)	(13		)	(2		)	(2		)	2			1			(13		)		(16		)	(10		)
Workers’ compensation	(40		)	(30		)	(20		)	(67		)	(24		)	(48		)	(25		)		(90		)	(97		)
Workers' compensation discount accretion	8			9			8			10			10			10			10				25			30
Catastrophes	(5		)	(16		)	(12		)	(4		)	(11		)	(44		)	(8		)		(33		)	(63		)
Uncollectible reinsurance	—			—			—			—			—			—			—				—			—
Other reserve re-estimates	3			1			5			(4		)	—			2			4				9			6
Total prior accident year development	$	(19	)	$	22		$	(10	)	$	(55	)	$	(53	)	$	(73	)	$	(19	)		$	(7	)	$	(145	)
Change in loss reserves upon acquisition of Navigators [1]	—			68			—			—			—			—			—				68			—
Prior accident year development excluding increase in Navigators reserves	$	(19	)	$	(46	)	$	(10	)	$	(55	)	$	(53	)	$	(73	)	$	(19	)		$	(75	)	$	(145	)

[1] The prior accident year reserve increase of $68 related to the Navigators Group acquisition for the three 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																						NINE MONTHS ENDED
	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Sept 30 2019			Sept 30 2018
UNDERWRITING GAIN	$	82		$	(5	)	$	70		$	168		$	70		$	173		$	114			$	147		$	357
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes	59.4			59.3			58.4			57.3			59.1			56.0			56.8				59.1			57.3
Current accident year catastrophes	3.3			4.5			3.9			2.0			5.3			4.2			4.0				3.9			4.5
Prior accident year development	(0.8		)	1.1			(0.6		)	(3.0		)	(3.0		)	(4.2		)	(1.1		)		(0.1		)	(2.8		)
Total losses and loss adjustment expenses	61.8			65.0			61.7			56.3			61.5			56.0			59.7				62.8			59.1
Expenses [1]	34.0			35.0			34.0			34.2			34.2			33.7			33.4				34.3			33.8
Policyholder dividends	0.5			0.3			0.3			0.3			0.4			0.3			0.2				0.4			0.3
Combined ratio	96.4			100.3			96.1			90.7			96.1			90.1			93.3				97.6			93.2
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development	(2.5		)	(5.6		)	(3.3		)	1.0			(2.3		)	—			2.9				(3.8		)	(1.7		)
Current accident year change in loss reserves upon acquisition of a business	—			(1.5		)	—			—			—			—			—				(0.5		)	—
Underlying combined ratio	93.9			93.2			92.7			91.7			93.7			90.0			90.4				93.3			91.4
COMBINED RATIOS BY LINE OF BUSINESS
SMALL COMMERCIAL
Combined ratio	86.6			89.2			92.4			83.4			88.3			85.6			88.9				89.4			87.6
Current accident year catastrophes	1.9			5.6			3.4			2.1			2.7			5.5			3.5				3.6			3.9
Prior accident year development	(3.2		)	(4.3		)	0.1			(4.7		)	(2.8		)	(5.1		)	(2.0		)		(2.5		)	(3.3		)
Underlying combined ratio	87.9			87.8			88.9			86.0			88.4			85.2			87.5				88.2			87.0
MIDDLE & LARGE COMMERCIAL
Combined ratio	107.3			105.8			103.0			99.0			111.7			97.8			100.7				105.4			103.5
Current accident year catastrophes	5.4			4.1			5.0			0.9			10.0			3.3			5.9				4.9			6.4
Prior accident year development	2.4			0.7			(0.2		)	(1.8		)	0.4			(2.6		)	(0.2		)		1.0			(0.8		)
Underlying combined ratio	99.6			100.9			98.1			99.9			101.2			97.1			95.0				99.6			97.9
GLOBAL SPECIALTY
Combined ratio	97.9			120.4			85.7			95.4			69.6			92.1			86.1				103.1			82.6
Current accident year catastrophes	2.9			2.3			2.3			6.7			0.4			0.2			—				2.6			0.2
Prior accident year development	(1.1		)	18.2			(5.9		)	0.4			(20.6		)	3.8			—				4.2			(5.6		)
Current accident year change in loss reserves upon acquisition of a business	—			9.1			—			—			—			—			—				2.9			—
Underlying combined ratio	96.2			90.7			89.4			88.4			89.8			88.1			86.1				93.4			88.0

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

12

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

SUPPLEMENTAL DATA

	THREE MONTHS ENDED																						NINE MONTHS ENDED
	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Sept 30 2019			Sept 30 2018
WRITTEN PREMIUMS
Small Commercial	$	897		$	960		$	1,010		$	889		$	898		$	906		$	978			$	2,867		$	2,782
Middle & Large Commercial	768			757			757			742			686			657			716				2,282			2,059
Middle Market [1]	675			673			641			653			605			569			600				1,989			1,774
National Accounts and Other	93			84			116			89			81			88			116				293			285
Global Specialty	559			353			171			156			155			161			145				1,083			461
U.S. [2]	376			274			171			156			155			161			145				821			461
International [3]	115			43			—			—			—			—			—				158			—
Global Re [4]	68			36			—			—			—			—			—				104			—
Other	11			8			11			13			12			10			12				30			34
Total	$	2,235		$	2,078		$	1,949		$	1,800		$	1,751		$	1,734		$	1,851			$	6,262		$	5,336
EARNED PREMIUMS
Small Commercial	$	936		$	933		$	910		$	930		$	920		$	907		$	894			$	2,779		$	2,721
Middle & Large Commercial	765			729			703			710			702			675			659				2,197			2,036
Middle Market [1]	674			637			608			610			598			580			564				1,919			1,742
National Accounts and Other	91			92			95			100			104			95			95				278			294
Global Specialty	538			314			153			156			151			152			146				1,005			449
U.S. [2]	362			241			153			156			151			152			146				756			449
International [3]	101			44			—			—			—			—			—				145			—
Global Re [4]	75			29			—			—			—			—			—				104			—
Other	11			11			11			10			12			11			12				33			35
Total	$	2,250		$	1,987		$	1,777		$	1,806		$	1,785		$	1,745		$	1,711			$	6,014		$	5,241
U.S. STANDARD COMMERCIAL LINES STATISTICAL PREMIUM INFORMATION [5]
New Business Premium
Small Commercial	$	150		$	183		$	175		$	157		$	145		$	142		$	156			$	508		$	443
Middle Market	$	146		$	177		$	140		$	136		$	131		$	135		$	138			$	463		$	404
Renewal Price Increases [6]
Standard Commercial Lines - Written	2.8		%	2.4		%	1.7		%	1.7		%	1.9		%	3.1		%	2.8		%		2.3		%	2.6		%
Standard Commercial Lines - Earned	2.2		%	2.1		%	2.4		%	2.6		%	3.0		%	3.3		%	3.3		%		2.2		%	3.2		%
Policy Count Retention [6]
Small Commercial	83		%	83		%	84		%	83		%	83		%	82		%	82		%		83		%	82		%
Middle Market	83		%	81		%	81		%	79		%	78		%	77		%	78		%		82		%	78		%
Policies in Force (in thousands) [6]
Small Commercial	1,294			1,291			1,280			1,271			1,264			1,259			1,258
Middle Market	64			64			64			64			64			65			65

[1] The three months ended September 30, 2019 and June 30, 2019, included $32 and $12 of written premium, respectively, and $25 and $9 of earned premium, respectively, related to the business from Navigators Group

[2] The three months ended September 30, 2019 and June 30, 2019, included $208 and $99 of written premium, respectively, and $198 and $80 of earned premium, respectively, related to the business 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																						NINE MONTHS ENDED
	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Sept 30 2019			Sept 30 2018
Written premiums	$	822		$	824		$	771		$	758		$	854		$	857		$	807			$	2,417		$	2,518
Change in unearned premium reserve	19			23			(28		)	(77		)	5			1			(52		)		14			(46		)
Earned premiums	803			801			799			835			849			856			859				2,403			2,564
Fee income	9			10			9			10			10			10			10				28			30
Losses and loss adjustment expenses
Current accident year before catastrophes	531			517			500			561			565			557			566				1,548			1,688
Current accident year catastrophes	32			48			34			324			74			114			34				114			222
Prior accident year development [1]	(28		)	4			(1		)	(11		)	(18		)	10			(13		)		(25		)	(21		)
Total losses and loss adjustment expenses	535			569			533			874			621			681			587				1,637			1,889
Amortization of DAC	64			65			65			66			68			70			71				194			209
Underwriting expenses	154			155			155			157			155			156			143				464			454
Amortization of other intangible assets	1			2			1			1			1			1			1				4			3
Underwriting gain (loss)	58			20			54			(253		)	14			(42		)	67				132			39
Net servicing income	4			4			3			3			5			4			4				11			13
Net investment income	46			46			42			39			39			37			40				134			116
Net realized capital gains (losses)	9			8			19			(17		)	5			5			—				36			10
Other income (expense)	—			(2		)	1			(2		)	1			1			(1		)		(1		)	1
Income (loss) before income taxes	117			76			119			(230		)	64			5			110				312			179
Income tax expense (benefit)	23			14			23			(52		)	13			(1		)	21				60			33
Net income (loss)	94			62			96			(178		)	51			6			89				252			146
Adjustments to reconcile net income (loss) to core earnings (losses):
Net realized capital losses (gains), excluded from core earnings, before tax	(9		)	(8		)	(18		)	17			(5		)	(6		)	1				(35		)	(10		)
Income tax expense (benefit) [2]	2			1			4			(5		)	1			2			(1		)		7			2
Core earnings (losses)	$	87		$	55		$	82		$	(166	)	$	47		$	2		$	89			$	224		$	138

[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																						NINE MONTHS ENDED
	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Sept 30 2019			Sept 30 2018
Auto liability	$	(23	)	$	—		$	(5	)	$	(8	)	$	(10	)	$	—		$	—			$	(28	)	$	(10	)
Homeowners	(1		)	—			1			(5		)	(7		)	(1		)	(12		)		—			(20		)
Catastrophes	—			2			4			2			(2		)	13			5				6			16
Other reserve re-estimates, net	(4		)	2			(1		)	—			1			(2		)	(6		)		(3		)	(7		)
Total prior accident year development	$	(28	)	$	4		$	(1	)	$	(11	)	$	(18	)	$	10		$	(13	)		$	(25	)	$	(21	)

15

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

UNDERWRITING RATIOS

	THREE MONTHS ENDED																						NINE MONTHS ENDED
	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Sept 30 2019			Sept 30 2018
UNDERWRITING GAIN (LOSS)	$	58		$	20		$	54		$	(253	)	$	14		$	(42	)	$	67			$	132		$	39
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes	66.1			64.5			62.6			67.2			66.5			65.1			65.9				64.4			65.8
Current accident year catastrophes	4.0			6.0			4.3			38.8			8.7			13.3			4.0				4.7			8.7
Prior accident year development	(3.5		)	0.5			(0.1		)	(1.3		)	(2.1		)	1.2			(1.5		)		(1.0		)	(0.8		)
Total losses and loss adjustment expenses	66.6			71.0			66.7			104.7			73.1			79.6			68.3				68.1			73.7
Expenses	26.2			26.5			26.5			25.6			25.2			25.4			23.9				26.4			24.8
Combined ratio	92.8			97.5			93.2			130.3			98.4			104.9			92.2				94.5			98.5
Adjustment to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development	(0.5		)	(6.5		)	(4.2		)	(37.5		)	(6.6		)	(14.5		)	(2.5		)		(3.7		)	(7.9		)
Underlying combined ratio	92.3			91.0			89.1			92.8			91.8			90.4			89.8				90.8			90.6
PRODUCT
Automobile
Combined ratio	95.7			97.2			93.1			102.9			98.9			99.7			93.1				95.3			97.2
Current accident year catastrophes	1.2			0.9			0.6			0.9			2.0			3.4			0.5				0.9			2.0
Prior accident year development	(4.2		)	(0.5		)	(1.1		)	(1.5		)	(1.7		)	(0.2		)	(1.6		)		(1.9		)	(1.2		)
Underlying combined ratio	98.8			96.7			93.6			103.6			98.5			96.5			94.2				96.4			96.4
Homeowners
Combined ratio	86.5			99.3			93.1			194.3			96.9			117.8			89.8				93.0			101.5
Current accident year catastrophes	10.6			17.6			12.7			126.5			23.6			36.4			12.0				13.6			24.0
Prior accident year development	(0.7		)	2.6			2.1			(0.9		)	(3.0		)	5.0			(1.1		)		1.3			0.3
Underlying combined ratio	76.6			79.2			78.4			68.7			76.3			76.4			78.9				78.1			77.2

16

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

SUPPLEMENTAL DATA

	THREE MONTHS ENDED																						NINE MONTHS ENDED
	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Sept 30 2019			Sept 30 2018
DISTRIBUTION
WRITTEN PREMIUMS
AARP Direct	$	690		$	692		$	643		$	615		$	706		$	704		$	654			$	2,025		$	2,064
AARP Agency	59			60			62			63			64			67			67				181			198
Other Agency	64			63			58			71			73			77			77				185			227
Other	9			9			8			9			11			9			9				26			29
Total	$	822		$	824		$	771		$	758		$	854		$	857		$	807			$	2,417		$	2,518
EARNED PREMIUMS
AARP Direct	$	667		$	663		$	657		$	681		$	687		$	684		$	681			$	1,987		$	2,052
AARP Agency	62			63			65			68			71			74			77				190			222
Other Agency	64			66			68			75			83			86			92				198			261
Other	10			9			9			11			8			12			9				28			29
Total	$	803		$	801		$	799		$	835		$	849		$	856		$	859			$	2,403		$	2,564
PRODUCT LINE
WRITTEN PREMIUMS
Automobile	$	562		$	564		$	555		$	523		$	583		$	586		$	581			$	1,681		$	1,750
Homeowners	260			260			216			235			271			271			226				736			768
Total	$	822		$	824		$	771		$	758		$	854		$	857		$	807			$	2,417		$	2,518
EARNED PREMIUMS
Automobile	$	558		$	557		$	555		$	582		$	591		$	596		$	600			$	1,670		$	1,787
Homeowners	245			244			244			253			258			260			259				733			777
Total	$	803		$	801		$	799		$	835		$	849		$	856		$	859			$	2,403		$	2,564

17

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

SUPPLEMENTAL DATA (CONTINUED)

	THREE MONTHS ENDED																						NINE MONTHS ENDED
	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Sept 30 2019			Sept 30 2018
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
New Business Premium
Automobile	$	58		$	59		$	56		$	43		$	47		$	42		$	37			$	173		$	126
Homeowners	$	21		$	20		$	16		$	14		$	12		$	11		$	9			$	57		$	32
Renewal Written Price Increases
Automobile	4.1		%	4.8		%	5.5		%	5.1		%	6.0		%	8.1		%	9.5		%		4.8		%	7.9		%
Homeowners	5.9		%	7.0		%	7.9		%	9.1		%	9.9		%	10.4		%	9.4		%		6.9		%	9.9		%
Renewal Earned Price Increases
Automobile	5.1		%	5.6		%	6.5		%	7.8		%	9.2		%	10.4		%	10.7		%		5.8		%	10.1		%
Homeowners	8.0		%	8.9		%	9.6		%	9.7		%	9.6		%	9.2		%	8.9		%		8.8		%	9.2		%
Policy Count Retention
Automobile	85		%	85		%	85		%	83		%	83		%	82		%	80		%		85		%	82		%
Homeowners	86		%	85		%	84		%	84		%	83		%	84		%	82		%		85		%	83		%
Premium Retention
Automobile	87		%	87		%	87		%	84		%	85		%	86		%	85		%		87		%	85		%
Homeowners	90		%	90		%	89		%	90		%	90		%	91		%	89		%		90		%	90		%
Policies in Force (in thousands)
Automobile	1,445			1,465			1,485			1,510			1,547			1,589			1,641
Homeowners	893			903			913			927			948			978			1,008

18

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

P&C OTHER OPERATIONS

INCOME STATEMENTS

	THREE MONTHS ENDED																						NINE MONTHS ENDED
	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Sept 30 2019			Sept 30 2018
Losses and loss adjustment expenses
Prior accident year development	$	—		$	9		$	—		$	38		$	11		$	16		$	—			$	9		$	27
Total losses and loss adjustment expenses	—			9			—			38			11			16			—				9			27
Underwriting expenses	3			3			3			3			3			3			3				9			9
Underwriting loss	(3		)	(12		)	(3		)	(41		)	(14		)	(19		)	(3		)		(18		)	(36		)
Net investment income	21			21			22			22			22			22			24				64			68
Net realized capital gains (losses)	4			4			9			(9		)	3			3			(1		)		17			5
Other expense	—			—			—			(1		)	—			—			—				—			—
Income (loss) before income taxes	22			13			28			(29		)	11			6			20				63			37
Income tax expense (benefit)	4			2			5			(13		)	2			1			3				11			6
Net income (loss)	18			11			23			(16		)	9			5			17				52			31
Adjustments to reconcile net income to core earnings (losses):
Net realized capital losses (gains), excluded from core earnings, before tax	(4		)	(3		)	(9		)	9			(3		)	(3		)	1				(16		)	(5		)
Income tax expense (benefit) [1]	1			—			2			(8		)	2			1			(1		)		3			2
Core earnings (losses)	$	15		$	8		$	16		$	(15	)	$	8		$	3		$	17			$	39		$	28

[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																						NINE MONTHS ENDED
	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Sept 30 2019			Sept 30 2018
Earned premiums	$	1,337		$	1,377		$	1,364		$	1,356		$	1,353		$	1,357		$	1,357			$	4,078		$	4,067
Fee income	45			45			45			44			43			44			44				135			131
Net investment income	121			121			121			121			117			115			121				363			353
Net realized capital gains (losses)	14			7			5			(21		)	(3		)	2			(25		)		26			(26		)
Total revenues	1,517			1,550			1,535			1,500			1,510			1,518			1,497				4,602			4,525
Benefits, losses and loss adjustment expenses	983			1,062			1,053			1,016			1,054			1,059			1,085				3,098			3,198
Amortization of DAC	14			14			13			12			12			11			10				41			33
Insurance operating costs and other expenses	329			324			315			325			319			317			321				968			957
Amortization of other intangible assets	10			11			10			12			15			16			17				31			48
Total benefits, losses and expenses	1,336			1,411			1,391			1,365			1,400			1,403			1,433				4,138			4,236
Income before income taxes	181			139			144			135			110			115			64				464			289
Income tax expense	35			26			26			22			33			19			10				87			62
Net income	146			113			118			113			77			96			54				377			227
Adjustments to reconcile net income to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax	(15		)	(6		)	(5		)	22			3			—			26				(26		)	29
Integration and transaction costs associated with acquired business, before tax	9			10			9			12			12			11			12				28			35
Income tax expense (benefit) [1]	1			(2		)	—			(11		)	10			(3		)	(7		)		(1		)	—
Core earnings	$	141		$	115		$	122		$	136		$	102		$	104		$	85			$	378		$	291
Margin
Net income margin	9.6		%	7.3		%	7.7		%	7.5		%	5.1		%	6.3		%	3.6		%		8.2		%	5.0		%
Core earnings margin*	9.4		%	7.5		%	8.0		%	8.9		%	6.7		%	6.9		%	5.6		%		8.3		%	6.4		%
ROE
Net income available to common stockholders [2]	12.9		%	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	(0.1		%)	0.4		%	0.6		%	1.7		%	1.0		%	0.6		%	0.1		%
Integration and transaction costs associated with acquired business, before tax	1.2		%	1.3		%	1.4		%	1.5		%	2.1		%	1.6		%	1.2		%
Income tax benefit [1]	(0.4		%)	(0.1		%)	(0.1		%)	(0.4		%)	(2.2		%)	(2.6		%)	(2.3		)%
Impact of AOCI, excluded from core earnings ROE	0.7		%	0.5		%	0.3		%	0.2		%	0.2		%	0.4		%	0.4		%
Core earnings [2]	14.3		%	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, though for the three and nine months ended September 30, 2018, also included $14 of income tax expense that was primarily driven by the effect of the lower corporate income tax rate on deferred taxes due to the filing of the Company's 2017 federal income tax return and completion of the Aetna group benefits acquisition.

[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																						NINE MONTHS ENDED
	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Sept 30 2019			Sept 30 2018
PREMIUMS
Fully insured ongoing premiums
Group disability	$	652		$	679		$	659		$	651		$	641		$	642		$	633			$	1,990		$	1,916
Group life	621			633			641			643			652			651			664				1,895			1,967
Other [1]	64			61			62			62			60			59			60				187			179
Total fully insured ongoing premiums	1,337			1,373			1,362			1,356			1,353			1,352			1,357				4,072			4,062
Total buyouts [2]	—			4			2			—			—			5			—				6			5
Total premiums	$	1,337		$	1,377		$	1,364		$	1,356		$	1,353		$	1,357		$	1,357			$	4,078		$	4,067
SALES (GROSS ANNUALIZED NEW PREMIUMS)
Fully insured ongoing sales
Group disability	$	29		$	48		$	219		$	37		$	48		$	47		$	260			$	296		$	355
Group life	30			43			143			21			47			34			160				216			241
Other [1]	15			8			45			3			9			4			34				68			47
Total fully insured ongoing sales	74			99			407			61			104			85			454				580			643
Total buyouts [2]	—			4			2			—			—			5			—				6			5
Total sales	$	74		$	103		$	409		$	61		$	104		$	90		$	454			$	586		$	648
RATIOS, EXCLUDING BUYOUTS
Group disability loss ratio	64.4		%	72.9		%	69.6		%	67.5		%	75.9		%	74.3		%	74.9		%		69.0		%	75.0		%
Group life loss ratio	80.8		%	77.8		%	81.3		%	78.8		%	76.6		%	77.4		%	80.9		%		80.0		%	78.3		%
Total loss ratio	71.1		%	74.6		%	74.7		%	72.6		%	75.5		%	75.5		%	77.4		%		73.5		%	76.2		%
Expense ratio [3]	24.9		%	23.9		%	23.4		%	24.1		%	23.9		%	23.9		%	24.0		%		24.1		%	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																						NINE MONTHS ENDED
	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Sept 30 2019			Sept 30 2018
Investment management fees	$	183		$	180		$	171		$	174		$	188		$	182		$	181			$	534		$	551
Shareholder servicing fees	22			21			21			21			23			22			21				64			66
Other revenue	50			52			48			53			57			58			57				150			172
Net realized capital gains (losses)	1			—			2			(3		)	—			(1		)	—				3			(1		)
Total revenues	256			253			242			245			268			261			259				751			788
Sub-advisory expense	67			65			62			64			69			66			66				194			201
Employee compensation and benefits	26			28			32			29			28			27			29				86			84
Distribution and service	84			84			81			82			91			91			91				249			273
General, administrative and other	28			29			30			25			28			31			30				87			89
Total expenses	205			206			205			200			216			215			216				616			647
Income before income taxes	51			47			37			45			52			46			43				135			141
Income tax expense	11			9			7			9			11			9			9				27			29
Net income	$	40		$	38		$	30		$	36		$	41		$	37		$	34			$	108		$	112
Adjustments to reconcile net income to core earnings:
Net realized capital losses (gains), excluded from core earnings, before tax	(1		)	—			(2		)	3			—			1			—				(3		)	1
Income tax benefit	—			—			—			(1		)	—			—			—				—			—
Core earnings	$	39		$	38		$	28		$	38		$	41		$	38		$	34			$	105		$	113
Daily average Hartford Funds AUM	$119,738			$117,875			$112,210			$112,097			$119,897			$117,070			$117,301				$	116,635		$	118,098
Return on assets (bps, net of tax) [1]
Net income	13.3			12.9			10.9			12.6			13.6			12.6			11.9				12.4			12.7
Core earnings*	12.9			12.9			10.3			13.4			13.6			12.8			11.9				12.1			12.8
ROE
Net income available to common stockholders [2]	48.0		%	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)	(0.3		%)	(0.4		%)	(0.4		%)	(0.4		%)	1.5		%	1.5		%	1.6		%
Impact of AOCI, excluded from core earnings ROE	(0.6		%)	(0.6		%)	(0.4		%)	(0.5		%)	(0.4		%)	(0.3		%)	(0.2		)%
Core earnings [2]	47.1		%	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																						NINE MONTHS ENDED
	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Sept 30 2019			Sept 30 2018
Equity Funds
Beginning balance	$	68,474		$	66,158		$	56,986		$	69,463		$	66,285		$	64,702		$	63,740			$	56,986		$	63,740
Sales	3,003			3,761			4,358			3,749			3,672			3,452			4,175				11,122			11,299
Redemptions	(3,867		)	(4,153		)	(3,893		)	(5,376		)	(3,449		)	(3,116		)	(3,749		)		(11,913		)	(10,314		)
Net flows	(864		)	(392		)	465			(1,627		)	223			336			426				(791		)	985
Change in market value and other	(611		)	2,708			8,707			(10,850		)	2,955			1,247			536				10,804			4,738
Ending balance	$	66,999		$	68,474		$	66,158		$	56,986		$	69,463		$	66,285		$	64,702			$	66,999		$	69,463
Fixed Income Funds
Beginning balance	$	15,569		$	15,070		$	14,467		$	14,831		$	14,556		$	14,378		$	14,401			$	14,467		$	14,401
Sales	1,420			1,274			1,314			1,222			946			1,119			1,002				4,008			3,067
Redemptions	(1,491		)	(1,121		)	(1,138		)	(1,541		)	(772		)	(960		)	(1,030		)		(3,750		)	(2,762		)
Net flows	(71		)	153			176			(319		)	174			159			(28		)		258			305
Change in market value and other	187			346			427			(45		)	101			19			5				960			125
Ending balance	$	15,685		$	15,569		$	15,070		$	14,467		$	14,831		$	14,556		$	14,378			$	15,685		$	14,831
Multi-Strategy Investments Funds [1]
Beginning balance	$	20,095		$	19,540		$	18,233		$	20,062		$	19,894		$	20,137		$	20,469			$	18,233		$	20,469
Sales	776			672			640			622			558			681			1,000				2,088			2,239
Redemptions	(768		)	(823		)	(869		)	(1,079		)	(971		)	(931		)	(914		)		(2,460		)	(2,816		)
Net flows	8			(151		)	(229		)	(457		)	(413		)	(250		)	86				(372		)	(577		)
Change in market value and other	326			706			1,536			(1,372		)	581			7			(418		)		2,568			170
Ending balance	$	20,429		$	20,095		$	19,540		$	18,233		$	20,062		$	19,894		$	20,137			$	20,429		$	20,062
Exchange-traded Products ("ETP") AUM
Beginning balance	$	2,751		$	2,457		$	1,871		$	1,177		$	930		$	666		$	480			$	1,871		$	480
Net flows	127			285			462			721			261			228			194				874			683
Change in market value and other	(31		)	9			124			(27		)	(14		)	36			(8		)		102			14
Ending balance	$	2,847		$	2,751		$	2,457		$	1,871		$	1,177		$	930		$	666			$	2,847		$	1,177
Mutual Fund and ETP AUM
Beginning balance	$	106,889		$	103,225		$	91,557		$	105,533		$	101,665		$	99,883		$	99,090			$	91,557		$	99,090
Sales - mutual fund	5,199			5,707			6,312			5,593			5,176			5,252			6,177				17,218			16,605
Redemptions - mutual fund	(6,126		)	(6,097		)	(5,900		)	(7,996		)	(5,192		)	(5,007		)	(5,693		)		(18,123		)	(15,892		)
Net flows - ETP	127			285			462			721			261			228			194				874			683
Net flows - mutual fund and ETP	(800		)	(105		)	874			(1,682		)	245			473			678				(31		)	1,396
Change in market value and other	(129		)	3,769			10,794			(12,294		)	3,623			1,309			115				14,434			5,047
Ending balance	105,960			106,889			103,225			91,557			105,533			101,665			99,883				105,960			105,533
Talcott Resolution life and annuity separate account AUM [2]	14,021			14,412			14,364			13,283			15,543			15,376			15,614				14,021			15,543
Hartford Funds AUM	$	119,981		$	121,301		$	117,589		$	104,840		$	121,076		$	117,041		$	115,497			$	119,981		$	121,076

[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																						NINE MONTHS ENDED
	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Sept 30 2019			Sept 30 2018
Fee income [1]	$	14		$	11		$	13		$	11		$	15		$	4		$	2			$	38		$	21
Other revenue [2]	24			10			34			13			6			2			—				68			8
Net investment income	10			17			24			26			15			11			7				51			33
Net realized capital gains (losses)	1			7			13			(16		)	4			1			4				21			9
Total revenues	49			45			84			34			40			18			13				178			71
Benefits, losses and loss adjustment expenses [3]	5			3			2			2			3			4			2				10			9
Insurance operating costs and other expenses	20			33			13			24			25			19			15				66			59
Loss on extinguishment of debt [4]	90			—			—			—			—			6			—				90			6
Interest expense	67			63			64			70			69			79			80				194			228
Total expenses	182			99			79			96			97			108			97				360			302
Income (loss) from continuing operations before income taxes	(133		)	(54		)	5			(62		)	(57		)	(90		)	(84		)		(182		)	(231		)
Income tax expense (benefit)	(34		)	(11		)	5			(50		)	(17		)	(8		)	(20		)		(40		)	(45		)
Loss from continuing operations, net of tax	(99		)	(43		)	—			(12		)	(40		)	(82		)	(64		)		(142		)	(186		)
Income from discontinued operations, net of tax [5]	—			—			—			—			5			148			169				—			322
Net income (loss)	(99		)	(43		)	—			(12		)	(35		)	66			105				(142		)	136
Preferred stock dividends	11			—			5			6			—			—			—				16			—
Net income (loss) available to common stockholders	(110		)	(43		)	(5		)	(18		)	(35		)	66			105				(158		)	136
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		)	(10		)
Loss on extinguishment of debt, before tax	90			—			—			—			—			6			—				90			6
Transaction costs, before tax [7]	1			15			—			—			—			—			—				16			—
Income tax expense (benefit) [6]	(18		)	1			3			(44		)	(1		)	2			2				(14		)	3
Income from discontinued operations, net of tax [5]	—			—			—			—			(5		)	(148		)	(169		)		—			(322		)
Core losses	$	(37	)	$	(35	)	$	(15	)	$	(46	)	$	(45	)	$	(76	)	$	(66	)		$	(87	)	$	(187	)

[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 nine months ended September 30, 2019, includes $14 and $45, 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] For the September 30, 2019 periods, amount relates to the redemptions of $265 of 5.75% senior notes that had been assumed in the Navigators Group acquisition and $800 of 5.125% senior notes of The Hartford Financial Services Group, Inc.

[5] 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.

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

[7] 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																						NINE MONTHS ENDED
	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Sept 30 2019			Sept 30 2018
Net Investment Income
Fixed maturities [1]
Taxable	$	306		$	296		$	284		$	282		$	269		$	252		$	238			$	886		$	759
Tax-exempt	86			90			97			100			101			106			111				273			318
Total fixed maturities	392			386			381			382			370			358			349				1,159			1,077
Equity securities	12			12			7			14			6			6			6				31			18
Mortgage loans	37			41			40			39			35			34			33				118			102
Limited partnerships and other alternative investments [2]	65			60			56			48			45			39			73				181			157
Other [3]	5			7			9			(7		)	10			9			8				21			27
Subtotal	511			506			493			476			466			446			469				1,510			1,381
Investment expense	(21		)	(18		)	(23		)	(19		)	(22		)	(18		)	(18		)		(62		)	(58		)
Total net investment income	$	490		$	488		$	470		$	457		$	444		$	428		$	451			$	1,448		$	1,323
Annualized investment yield, before tax [4]	4.0		%	4.2		%	4.1		%	4.0		%	4.0		%	3.9		%	4.2		%		4.1		%	4.0		%
Annualized limited partnerships and other alternative investment yield, before tax [4]	15.3		%	13.9		%	13.4		%	11.6		%	10.6		%	9.5		%	18.6		%		14.7		%	13.3		%
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]*	3.6		%	3.8		%	3.7		%	3.7		%	3.7		%	3.7		%	3.7		%		3.7		%	3.7		%
Annualized investment yield, net of tax [4]	3.3		%	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]*	3.0		%	3.1		%	3.1		%	3.1		%	3.1		%	3.1		%	3.0		%		3.1		%	3.1		%
Average reinvestment rate [5]	3.1		%	3.5		%	4.1		%	4.3		%	4.0		%	4.0		%	3.8		%		3.5		%	4.0		%
Average sales/maturities yield [6]	4.1		%	4.0		%	4.1		%	4.0		%	3.8		%	3.7		%	3.3		%		4.0		%	3.6		%
Portfolio duration (in years) [7]	4.9			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																						NINE MONTHS ENDED
	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Sept 30 2019			Sept 30 2018
Net Investment Income
Fixed maturities [1]
Taxable	$	218		$	201		$	182		$	184		$	178		$	168		$	163			$	601		$	509
Tax-exempt	65			68			73			76			77			79			82				206			238
Total fixed maturities	283			269			255			260			255			247			245				807			747
Equity securities	9			8			5			5			5			5			4				22			14
Mortgage loans	26			28			27			28			24			23			24				81			71
Limited partnerships and other alternative investments [2]	52			50			46			37			35			33			58				148			126
Other [3]	3			7			7			(8		)	8			6			4				17			18
Subtotal	373			362			340			322			327			314			335				1,075			976
Investment expense	(15		)	(14		)	(17		)	(14		)	(16		)	(13		)	(13		)		(46		)	(42		)
Total net investment income	$	358		$	348		$	323		$	308		$	311		$	301		$	322			$	1,029		$	934
Annualized investment yield, before tax [4]	4.0		%	4.2		%	4.2		%	4.0		%	4.1		%	4.0		%	4.3		%		4.2		%	4.1		%
Annualized limited partnerships and other alternative investment yield, before tax [4]	14.6		%	13.9		%	13.0		%	10.7		%	9.8		%	9.3		%	17.0		%		14.3		%	12.4		%
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]*	3.6		%	3.8		%	3.8		%	3.7		%	3.8		%	3.8		%	3.7		%		3.7		%	3.7		%
Annualized investment yield, net of tax [4]	3.3		%	3.5		%	3.6		%	3.3		%	3.4		%	3.4		%	3.5		%		3.5		%	3.4		%
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]*	3.0		%	3.2		%	3.2		%	3.0		%	3.2		%	3.2		%	3.1		%		3.1		%	3.1		%
Average reinvestment rate [5]	3.1		%	3.5		%	4.1		%	4.4		%	3.9		%	4.0		%	3.7		%		3.5		%	3.9		%
Average sales/maturities yield [6]	4.1		%	3.9		%	4.1		%	4.1		%	3.8		%	3.9		%	3.7		%		4.0		%	3.8		%
Portfolio duration (in years) [7]	4.8			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																						NINE MONTHS ENDED
	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Sept 30 2019			Sept 30 2018
Net Investment Income
Fixed maturities [1]
Taxable	$	81		$	81		$	81		$	80		$	77		$	75		$	70			$	243		$	222
Tax-exempt	20			20			22			22			23			25			27				62			75
Total fixed maturities	101			101			103			102			100			100			97				305			297
Equity securities	1			1			—			1			—			—			1				2			1
Mortgage loans	11			13			13			11			11			11			9				37			31
Limited partnerships and other alternative investments [2]	13			10			10			11			10			6			15				33			31
Other [3]	1			—			1			1			2			3			4				2			9
Subtotal	127			125			127			126			123			120			126				379			369
Investment expense	(6		)	(4		)	(6		)	(5		)	(6		)	(5		)	(5		)		(16		)	(16		)
Total net investment income	$	121		$	121		$	121		$	121		$	117		$	115		$	121			$	363		$	353
Annualized investment yield, before tax [4]	4.2		%	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]	19.0		%	14.0		%	15.6		%	17.2		%	15.4		%	10.6		%	28.3		%		16.9		%	18.8		%
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]*	3.8		%	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		%	3.4		%	3.5		%		3.4		%	3.4		%
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]*	3.1		%	3.2		%	3.2		%	3.2		%	3.2		%	3.3		%	3.2		%		3.2		%	3.2		%
Average reinvestment rate [5]	3.4		%	3.8		%	4.0		%	4.3		%	4.1		%	4.2		%	3.9		%		3.7		%	4.1		%
Average sales/maturities yield [6]	4.3		%	4.2		%	4.0		%	3.9		%	3.6		%	3.8		%	3.0		%		4.2		%	3.4		%
Portfolio duration (in years) [7]	6.0			5.9			5.8			5.7			6.1			6.0			6.1				6.0			6.1

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																						NINE MONTHS ENDED
Net Investment Income by Segment	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Sept 30 2019			Sept 30 2018
Net Investment Income
Commercial Lines	$	291		$	281		$	259		$	247		$	250		$	242		$	258			$	831		$	750
Personal Lines	46			46			42			39			39			37			40				134			116
P&C Other Operations	21			21			22			22			22			22			24				64			68
Total Property & Casualty	$	358		$	348		$	323		$	308		$	311		$	301		$	322			$	1,029		$	934
Group Benefits	121			121			121			121			117			115			121				363			353
Hartford Funds	1			2			2			2			1			1			1				5			3
Corporate	10			17			24			26			15			11			7				51			33
Total net investment income by segment	$	490		$	488		$	470		$	457		$	444		$	428		$	451			$	1,448		$	1,323
	THREE MONTHS ENDED																						NINE MONTHS ENDED
Net Investment Income From Limited Partnerships and Other Alternative Investments	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Sept 30 2019			Sept 30 2018
Total Property & Casualty	$	52		$	50		$	46		$	37		$	35		$	33		$	58			$	148		$	126
Group Benefits	13			10			10			11			10			6			15				33			31
Total net investment income from limited partnerships and other alternative investments [1]	$	65		$	60		$	56		$	48		$	45		$	39		$	73			$	181		$	157

[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																						NINE MONTHS ENDED
	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Sept 30 2019			Sept 30 2018
Net Realized Capital Gains (Losses)
Gross gains on sales	$	77		$	69		$	44		$	23		$	26		$	46		$	19			$	190		$	91
Gross losses on sales	(4		)	(19		)	(21		)	(43		)	(41		)	(31		)	(57		)		(44		)	(129		)
Equity securities [1]	19			30			132			(136		)	46			26			16				181			88
Net impairment losses	(1		)	—			(2		)	—			(1		)	—			—				(3		)	(1		)
Valuation allowances on mortgage loans	—			1			—			—			—			—			—				1			—
Transactional foreign currency revaluation	—			—			—			—			—			—			1				—			1
Non-qualifying foreign currency derivatives	2			(1		)	1			1			1			4			(3		)		2			2
Other net gains (losses) [2] [3]	(4		)	—			9			(17		)	7			7			(6		)		5			8
Total net realized capital gains (losses)	89			80			163			(172		)	38			52			(30		)		332			60
Net realized capital gains, included in core earnings, before tax	(1		)	(1		)	(3		)	(3		)	(1		)	(2		)	—				(5		)	(3		)
Total net realized capital gains (losses) excluded from core earnings, before tax	88			79			160			(175		)	37			50			(30		)		327			57
Income tax benefit (expense) related to net realized capital gains (losses) excluded from core earnings	(18		)	(18		)	(34		)	38			(8		)	(10		)	5				(70		)	(13		)
Total net realized capital gains (losses) excluded from core earnings	$	70		$	61		$	126		$	(137	)	$	29		$	40		$	(25	)		$	257		$	44

[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

	Sept 30 2019					Jun 30 2019					Mar 31 2019					Dec 31 2018					Sept 30 2018
	Amount [1]			Percent		Amount			Percent		Amount			Percent		Amount [1]			Percent		Amount			Percent
Total investments	$	52,577		100.0	%	$	50,769		100.0	%	$	47,895		100.0	%	$	46,790		100.0	%	$	46,134		100.0	%
Asset-backed securities	$	1,337		3.1	%	$	1,029		2.5	%	$	968		2.6	%	$	1,276		3.6	%	$	1,191		3.3	%
Collateralized loan obligations	2,158			5.1	%	1,925			4.7	%	1,438			3.9	%	1,437			4.0	%	1,326			3.7	%
Commercial mortgage-backed securities	4,254			10.1	%	3,905			9.5	%	3,568			9.7	%	3,552			9.9	%	3,657			10.2	%
Corporate	17,801			42.0	%	16,748			40.7	%	14,403			39.1	%	13,398			37.6	%	13,492			37.3	%
Foreign government/government agencies	1,117			2.6	%	1,072			2.6	%	882			2.4	%	847			2.4	%	952			2.6	%
Municipal [2]	9,895			23.4	%	10,278			25.0	%	10,346			28.1	%	10,346			29.1	%	10,602			29.3	%
Residential mortgage-backed securities	4,732			11.1	%	4,566			11.0	%	3,548			9.7	%	3,279			9.2	%	3,118			8.5	%
U.S. Treasuries	1,095			2.6	%	1,643			4.0	%	1,666			4.5	%	1,517			4.2	%	1,828			5.1	%
Total fixed maturities, available-for-sale	$	42,389		100.0	%	$	41,166		100.0	%	$	36,819		100.0	%	$	35,652		100.0	%	$	36,166		100.0	%
U.S. government/government agencies	$	5,588		13.2	%	$	5,714		13.9	%	$	4,847		13.2	%	$	4,430		12.4	%	$	4,735		13.1	%
AAA	6,360			15.0	%	6,214			15.1	%	6,160			16.7	%	6,440			18.1	%	6,379			17.6	%
AA	8,202			19.4	%	7,890			19.1	%	7,016			19.0	%	6,985			19.6	%	7,085			19.6	%
A	10,894			25.7	%	10,552			25.6	%	8,871			24.1	%	8,370			23.5	%	8,543			23.6	%
BBB	9,850			23.2	%	9,246			22.5	%	8,530			23.2	%	8,163			22.9	%	8,232			22.8	%
BB	994			2.3	%	1,076			2.6	%	926			2.5	%	794			2.2	%	721			2.0	%
B	463			1.1	%	445			1.1	%	429			1.2	%	448			1.2	%	446			1.2	%
CCC	29			0.1	%	27			0.1	%	29			0.1	%	21			0.1	%	23			0.1	%
CC & below	9			—	%	2			—	%	11			—	%	1			—	%	2			—	%
Total fixed maturities, available-for-sale	$	42,389		100.0	%	$	41,166		100.0	%	$	36,819		100.0	%	$	35,652		100.0	%	$	36,166		100.0	%

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

[2] Primarily comprised of $7.3 billion in Property & Casualty, $2.4 billion in Group Benefits, and $0.2 billion in Corporate as of September 30, 2019.

30

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTED ASSET EXPOSURES

SEPTEMBER 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	$	4,312		$	4,472		8.5	%
Technology and communications	2,710			2,912			5.5	%
Consumer non-cyclical	2,522			2,650			5.0	%
Utilities	2,120			2,263			4.3	%
Energy [1]	1,525			1,609			3.1	%
Capital goods	1,498			1,567			3.0	%
Consumer cyclical	1,253			1,308			2.5	%
Transportation	789			833			1.6	%
Basic industry	700			734			1.4	%
Other	852			867			1.6	%
Total	$	18,281		$	19,215		36.5	%
Top Ten Exposures by Issuer [2]
New York State Dormitory Authority	$	248		$	263		0.5	%
Wells Fargo & Company	228			234			0.4	%
New York City Transitional Finance Authority	210			220			0.4	%
IBM Corporation	198			213			0.4	%
Commonwealth of Massachusetts	196			211			0.4	%
Comcast Corporation	183			204			0.4	%
Apple Inc.	187			204			0.4	%
Bank of America Corporation	184			196			0.4	%
Massachusetts St. Development Finance Agency	182			195			0.4	%
Morgan Stanley	175			186			0.3	%
Total	$	1,991		$	2,126		4.0	%

[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, as well as a Corporate category.

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

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

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

The Company includes in the Corporate category 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 equity financing, debt financing and related interest expense), transaction expenses incurred in connection with an acquisition, purchase accounting adjustments related to goodwill and other expenses not allocated to the reporting segments. Corporate also includes investment management fees and expenses related to managing third party business, including management of the invested assets of Talcott Resolution Life, Inc. and its subsidiaries ("Talcott Resolution"). Talcott Resolution is the 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 less fee income to earned premiums. Underwriting expenses included in the expense ratio consists of amortization of deferred policy acquisition costs and insurance operating costs and expenses, including certain centralized services and bad debt expense, but excluding integration and transaction costs associated with an acquired business.The policyholder dividend ratio is the ratio of policyholder dividends to earned premiums. The combined ratio is the sum of the loss and loss adjustment expense ratio, the expense ratio and the policyholder dividend ratio. These ratios are relative measurements that describe the related cost of losses, expenses and policyholder dividends for every $100 of earned premiums. A combined ratio below 100 demonstrates underwriting profit; a combined ratio above 100 demonstrates underwriting losses. The 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. For U.S. events, a catastrophe is an event that causes $25 or more in industry insured property losses and affects a significant number of property and casualty policyholders and insurers, as defined by the Property Claim Service office of Verisk. For international events, the Company's approach is similar, informed, in part, by how Lloyd's of London defines catastrophes.

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, any deferred gain resulting from retroactive reinsurance and subsequent changes in the deferred gain, 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. Deferred gain resulting from retroactive reinsurance and subsequent changes in the deferred gain are excluded from core earnings given that these reinsurance agreements economically transfer risk to the reinsurers and including the benefit from retroactive reinsurance in core earnings provides greater insight into the economics of the business. 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, both basic and diluted, 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.

BASIC EARNINGS PER SHARE

	THREE MONTHS ENDED															NINE MONTHS ENDED
	Sept 30 2019		Jun 30 2019		Mar 31 2019		Dec 31 2018		Sept 30 2018		Jun 30 2018		Mar 31 2018			Sept 30 2019		Sept 30 2018
Net Income available to common stockholders per share	1.45		1.03		1.74		0.53		1.20		1.62		1.67			4.21		4.50
Income from discontinued operations, after tax	—		—		—		—		0.01		0.41		0.47			—		0.90
Income from continuing operations, net of tax, available to common stockholders	1.45		1.03		1.74		0.53		1.19		1.21		1.20			4.21		3.60
Adjustments made to reconcile income from continuing operations, net of tax, available to common stockholders to core earnings per share:
Net realized capital losses (gains), excluded from core earnings, before tax	(0.24	)	(0.22	)	(0.44	)	0.49		(0.10	)	(0.14	)	0.08			(0.91	)	(0.16	)
Loss on extinguishment of debt, before tax	0.25		—		—		—		—		0.02		—			0.25		0.02
Loss on reinsurance transactions, before tax	—		0.25		—		—		—		—		—			0.25		—
Integration and transaction costs associated with an acquired business, before tax	0.08		0.09		0.03		0.03		0.03		0.03		0.03			0.19		0.10
Change in loss reserves upon acquisition of a business, before tax	—		0.27		—		—		—		—		—			0.27		—
Income tax expense (benefit) on items excluded from core earnings	(0.02	)	(0.08	)	0.08		(0.26	)	0.05		0.03		(0.02	)		0.01		0.05
Core earnings per share	1.52		1.34		1.41		0.79		1.17		1.15		1.29			4.27		3.61

33

DILUTED EARNINGS PER SHARE

	THREE MONTHS ENDED															NINE MONTHS ENDED
	Sept 30 2019		Jun 30 2019		Mar 31 2019		Dec 31 2018		Sept 30 2018		Jun 30 2018		Mar 31 2018			Sept 30 2019			Sept 30 2018
Net Income available to common stockholders per diluted share	1.43		1.02		1.71		0.52		1.19		1.60		1.64			$	4.17		$	4.42
Income from discontinued operations, after tax	—		—		—		—		0.02		0.41		0.46			—			0.88
Income from continuing operations, net of tax, available to common stockholders	1.43		1.02		1.71		0.52		1.17		1.19		1.18			$	4.17		$	3.54
Adjustments made to reconcile income from continuing operations, net of tax, available to common stockholders to core earnings per diluted share:
Net realized capital losses (gains), excluded from core earnings, before tax	(0.24	)	(0.22	)	(0.44	)	0.48		(0.10	)	(0.14	)	0.08			(0.90		)	(0.16		)
Loss on extinguishment of debt, before tax	0.25		—		—		—		—		0.02		—			0.25			0.02
Loss on reinsurance transactions, before tax	—		0.25		—		—		—		—		—			0.25			—
Integration and transaction costs associated with an acquired business, before tax	0.08		0.08		0.03		0.03		0.03		0.03		0.03			0.19			0.10
Change in loss reserves upon acquisition of a business, before tax	—		0.27		—		—		—		—		—			0.27			—
Income tax expense (benefit) on items excluded from core earnings	(0.02	)	(0.07	)	0.09		(0.25	)	0.05		0.03		(0.02	)		(0.01		)	0.05
Core earnings per diluted share	1.50		1.33		1.39		0.78		1.15		1.13		1.27			$	4.22		$	3.55

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”). 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. 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. 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
	Sept 30 2019		Jun 30 2019		Mar 31 2019		Dec 31 2018		Sept 30 2018		Jun 30 2018		Mar 31 2018
Net income (loss) ROE	12.0	%	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	(1.1	%)	(0.7	%)	(0.5	%)	0.9	%	(0.8	%)	(0.7	%)	(0.7	)%
Loss on extinguishment of debt, before tax	0.6	%	—	%	—	%	—	%	—	%	—	%	—	%
Loss on reinsurance transaction, before tax	0.6	%	0.7	%	—	%	—	%	—	%	—	%	—	%
Pension settlement, before tax	—	%	—	%	—	%	—	%	—	%	—	%	5.0	%
Integration and transaction costs associated with an acquired business, before tax	0.6	%	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	%	0.7	%	—	%	—	%	—	%	—	%	—	%
Income tax expense (benefit) on items not included in core earnings	(0.7	%)	(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	(0.4	%)	(0.8	%)	(0.4	%)	(0.3	%)	(0.1	%)	(0.3	%)	(0.1	)%
Core earnings ROE	12.3	%	11.7	%	11.5	%	11.6	%	10.3	%	8.4	%	7.8	%

34

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 could obscure underwriting trends. The changes to loss reserves upon acquisition of a business are also excluded from underlying underwriting gain (loss) because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition as such trends are valuable to our investors' ability to assess the Company's financial performance. A reconciliation of net income (loss) to underlying underwriting gain (loss) for individual reporting segments is set forth below.

PROPERTY & CASUALTY

	THREE MONTHS ENDED																						NINE MONTHS ENDED
	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Sept 30 2019			Sept 30 2018
Net income	$	448		$	264		$	482		$	59		$	349		$	383		$	404			$	1,194		$	1,136
Adjustments to reconcile net income to underlying underwriting gain (loss):
Net investment income	(358		)	(348		)	(323		)	(308		)	(311		)	(301		)	(322		)		(1,029		)	(934		)
Net realized capital losses (gains)	(73		)	(66		)	(143		)	132			(37		)	(50		)	9				(282		)	(78		)
Net servicing and other expense (income)	14			2			(2		)	1			(7		)	(3		)	(5		)		14			(15		)
Loss on reinsurance transaction	—			91			—			—			—			—			—				91			—
Income tax expense (benefit)	106			60			107			(10		)	76			83			92				273			251
Underwriting gain (loss)	137			3			121			(126		)	70			112			178				261			360
Current accident year catastrophes	106			138			104			361			169			188			103				348			460
Prior accident year development	(47		)	35			(11		)	(28		)	(60		)	(47		)	(32		)		(23		)	(139		)
Current accident year change in loss reserves upon acquisition of a business	—			29			—			—			—			—			—				29			—
Underlying underwriting gain	$	196		$	205		$	214		$	207		$	179		$	253		$	249			$	615		$	681

COMMERCIAL LINES

	THREE MONTHS ENDED																						NINE MONTHS ENDED
	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Sept 30 2019			Sept 30 2018
Net income	$	336		$	191		$	363		$	253		$	289		$	372		$	298			$	890		$	959
Adjustments to reconcile net income to underlying underwriting gain (loss):
Net servicing loss (income)	(2		)	(2		)	1			(2		)	1			(1		)	—				(3		)	—
Net investment income	(291		)	(281		)	(259		)	(247		)	(250		)	(242		)	(258		)		(831		)	(750		)
Net realized capital losses (gains)	(60		)	(54		)	(115		)	106			(29		)	(42		)	8				(229		)	(63		)
Other expense (income)	20			6			1			3			(2		)	3			(2		)		27			(1		)
Loss on reinsurance transaction	—			91			—			—			—			—			—				91			—
Income tax expense	79			44			79			55			61			83			68				202			212
Underwriting gain (loss)	82			(5		)	70			168			70			173			114				147			357
Current accident year catastrophes	74			90			70			37			95			74			69				234			238
Prior accident year development	(19		)	22			(10		)	(55		)	(53		)	(73		)	(19		)		(7		)	(145		)
Current accident year change in loss reserves upon acquisition of a business	—			29			—			—			—			—			—				29			—
Underlying underwriting gain	$	137		$	136		$	130		$	150		$	112		$	174		$	164			$	403		$	450

35

PERSONAL LINES

	THREE MONTHS ENDED																						NINE MONTHS ENDED
	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Sept 30 2019			Sept 30 2018
Net income (loss)	$	94		$	62		$	96		$	(178	)	$	51		$	6		$	89			$	252		$	146
Adjustments to reconcile net income (loss) to underlying underwriting gain (loss):
Net servicing income	(4		)	(4		)	(3		)	(3		)	(5		)	(4		)	(4		)		(11		)	(13		)
Net investment income	(46		)	(46		)	(42		)	(39		)	(39		)	(37		)	(40		)		(134		)	(116		)
Net realized capital losses (gains)	(9		)	(8		)	(19		)	17			(5		)	(5		)	—				(36		)	(10		)
Other expense (income)	—			2			(1		)	2			(1		)	(1		)	1				1			(1		)
Income tax expense (benefit)	23			14			23			(52		)	13			(1		)	21				60			33
Underwriting gain (loss)	58			20			54			(253		)	14			(42		)	67				132			39
Current accident year catastrophes	32			48			34			324			74			114			34				114			222
Prior accident year development	(28		)	4			(1		)	(11		)	(18		)	10			(13		)		(25		)	(21		)
Underlying underwriting gain	$	62		$	72		$	87		$	60		$	70		$	82		$	88			$	221		$	240

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.

	THREE MONTHS ENDED															NINE MONTHS ENDED
	Sept 30 2019		Jun 30 2019		Mar 31 2019		Dec 31 2018		Sept 30 2018		Jun 30 2018		Mar 31 2018			Sept 30 2019		Sept 30 2018
Net income margin	9.6	%	7.3	%	7.7	%	7.5	%	5.1	%	6.3	%	3.6	%		8.2	%	5.0	%
Adjustments to reconcile net income margin to core earnings margin:
Net realized capital losses (gains) excluded from core earnings, before tax	(0.9	)%	(0.4	)%	(0.3	)%	1.4	%	0.2	%	—	%	1.7	%		(0.5	)%	0.6	%
Integration and transaction costs associated with acquired business, before tax	0.6	%	0.7	%	0.6	%	0.7	%	0.8	%	0.8	%	0.8	%		0.6	%	0.8	%
Income tax benefit	0.1	%	(0.1	)%	—	%	(0.7	)%	0.6	%	(0.2	)%	(0.5	)%		—	%	—	%
Core earnings margin	9.4	%	7.5	%	8.0	%	8.9	%	6.7	%	6.9	%	5.6	%		8.3	%	6.4	%

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.

36

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																						NINE MONTHS ENDED
	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Sept 30 2019			Sept 30 2018
Total net investment income	$	490		$	488		$	470		$	457		$	444		$	428		$	451			$	1,448		$	1,323
Limited partnerships and other alternative investments ("Limited Partnerships")	(65		)	(60		)	(56		)	(48		)	(45		)	(39		)	(73		)		(181		)	(157		)
Net investment income excluding limited partnerships and other alternative investments	$	425		$	428		$	414		$	409		$	399		$	389		$	378			$	1,267		$	1,166

PROPERTY & CASUALTY

	THREE MONTHS ENDED																						NINE MONTHS ENDED
	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Sept 30 2019			Sept 30 2018
Total net investment income	$	358		$	348		$	323		$	308		$	311		$	301		$	322			$	1,029		$	934
Limited partnerships and other alternative investments	(52		)	(50		)	(46		)	(37		)	(35		)	(33		)	(58		)		(148		)	(126		)
Net investment income excluding limited partnerships and other alternative investments	$	306		$	298		$	277		$	271		$	276		$	268		$	264			$	881		$	808

GROUP BENEFITS

	THREE MONTHS ENDED																						NINE MONTHS ENDED
	Sept 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sept 30 2018			Jun 30 2018			Mar 31 2018				Sept 30 2019			Sept 30 2018
Total net investment income	$	121		$	121		$	121		$	121		$	117		$	115		$	121			$	363		$	353
Limited partnerships and other alternative investments	(13		)	(10		)	(10		)	(11		)	(10		)	(6		)	(15		)		(33		)	(31		)
Net investment income excluding limited partnerships and other alternative investments	$	108		$	111		$	111		$	110		$	107		$	109		$	106			$	330		$	322

37

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															NINE MONTHS ENDED
	Sept 30 2019		Jun 30 2019		Mar 31 2019		Dec 31 2018		Sept 30 2018		Jun 30 2018		Mar 31 2018			Sept 30 2019		Sept 30 2018
Annualized investment yield	4.0	%	4.2	%	4.1	%	4.0	%	4.0	%	3.9	%	4.2	%		4.1	%	4.0	%
Limited partnerships and other alternative investments	(0.4	)%	(0.4	)%	(0.4	)%	(0.3	)%	(0.3	)%	(0.2	)%	(0.5	)%		(0.4	)%	(0.3	)%
Annualized investment yield excluding limited partnerships and other alternative investments	3.6	%	3.8	%	3.7	%	3.7	%	3.7	%	3.7	%	3.7	%		3.7	%	3.7	%

PROPERTY & CASUALTY

	THREE MONTHS ENDED															NINE MONTHS ENDED
	Sept 30 2019		Jun 30 2019		Mar 31 2019		Dec 31 2018		Sept 30 2018		Jun 30 2018		Mar 31 2018			Sept 30 2019		Sept 30 2018
Annualized investment yield	4.0	%	4.2	%	4.2	%	4.0	%	4.1	%	4.0	%	4.3	%		4.2	%	4.1	%
Limited partnerships and other alternative investments	(0.4	)%	(0.4	)%	(0.4	)%	(0.3	)%	(0.3	)%	(0.2	)%	(0.6	)%		(0.5	)%	(0.4	)%
Annualized investment yield excluding limited partnerships and other alternative investments	3.6	%	3.8	%	3.8	%	3.7	%	3.8	%	3.8	%	3.7	%		3.7	%	3.7	%

GROUP BENEFITS

	THREE MONTHS ENDED															NINE MONTHS ENDED
	Sept 30 2019		Jun 30 2019		Mar 31 2019		Dec 31 2018		Sept 30 2018		Jun 30 2018		Mar 31 2018			Sept 30 2019		Sept 30 2018
Annualized investment yield	4.2	%	4.2	%	4.2	%	4.2	%	4.1	%	4.1	%	4.3	%		4.2	%	4.2	%
Limited partnerships and other alternative investments	(0.4	)%	(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	3.8	%	3.9	%	3.9	%	3.9	%	3.9	%	3.9	%	3.8	%		3.9	%	3.9	%

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