EX-99.2 3 ex992ifs3312021.htm EX-99.2
INVESTOR FINANCIAL SUPPLEMENT
March 31, 2021
Measures used in these financial statements and exhibits that are not based on generally accepted accounting principles ("non-GAAP") are denoted with an asterisk (*) the first time they appear in this document. These measures are defined within the Discussion of Non-GAAP and Other Financial Measures section and are reconciled to the most directly comparable generally accepted accounting principles ("GAAP") measure herein.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

|  | As of April 20, 2021 |  |  |  |  |  |
Address: |  |  |  |  |  |  |  |
One Hartford Plaza |  |  |  | A.M. Best |  | Standard & Poor’s |  | Moody’s
Hartford, CT 06155 |  | Insurance Financial Strength Ratings: |  |  |  |  |  |
|  | Hartford Fire Insurance Company |  | A+ |  | A+ |  | A1
|  | Hartford Life and Accident Insurance Company |  | A+ |  | A+ |  | A2
|  | Navigators Insurance Company |  | A+ |  | A |  | NR
|  | - Hartford Fire Insurance Company ratings are on stable outlook at A.M. Best, Moody’s, and Standard and Poor’s
|  | - Hartford Life and Accident Insurance Company ratings are on stable outlook at A.M. Best, Moody’s, and Standard and Poor’s
Internet address: |  | - Navigators Insurance Company ratings are on stable outlook at A.M. Best and Standard and Poor's
http://www.thehartford.com |  | NR- Not Rated
|  | Other Ratings: |  |  |  |  |  |
Contact: |  | Senior debt |  | a- |  | BBB+ |  | Baa1
Susan Spivak Bernstein |  | Junior subordinated debentures |  | bbb |  | BBB- |  | Baa2
Senior Vice President |  | Preferred stock |  | bbb |  | BBB- |  | Baa3
Investor Relations |  |  |  |  |  |  |  |
Phone (860) 547-6233 | - Hartford Financial Services Group, Inc. senior debt, junior subordinated debentures, and preferred stock are on stable outlook at A.M. Best, Standard and Poor’s, and Moody's.
|  | TRANSFER AGENT
|  | Stockholder correspondence should be mailed to: |  | Overnight correspondence should be mailed to:
|  | Computershare |  | Computershare
|  | P.O. Box 505000 |  | 462 South 4th Street, Suite 1600
|  | Louisville, KY 40233 |  | Louisville, KY 40202

Common stock and preferred stock of The Hartford Financial Services Group, Inc. are traded on the New York Stock Exchange under the symbols “HIG” and "HIG PR G", respectively.
This report is for information purposes only. It should be read in conjunction with documents filed by The Hartford Financial Services Group, Inc. with the U.S. Securities and Exchange
Commission, including, without limitation, the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTOR FINANCIAL SUPPLEMENT
TABLE OF CONTENTS

CONSOLIDATED | Consolidated Financial Results |  | 1
| Consolidated Statements of Operations |  | 2
| Operating Results by Segment |  | 3
| Consolidating Balance Sheets |  | 4
| Capital Structure |  | 5
| Statutory Capital to GAAP Stockholders’ Equity Reconciliation |  | 6
| Accumulated Other Comprehensive Income (Loss) |  | 7
PROPERTY & CASUALTY | Property & Casualty Income Statements |  | 8
| Property & Casualty Income Statements (Continued) |  | 9
| Property & Casualty Underwriting Ratios |  | 10
| Commercial Lines Income Statements |  | 11
| Commercial Lines Income Statements (Continued) |  | 12
| Commercial Lines Underwriting Ratios |  | 13
| Commercial Lines Supplemental Data |  | 14
| Personal Lines Income Statements |  | 15
| Personal Lines Income Statements (Continued) |  | 16
| Personal Lines Underwriting Ratios |  | 17
| Personal Lines Supplemental Data |  | 18
| Personal Lines Supplemental Data (Continued) |  | 19
| P&C Other Operations Income Statements |  | 20
GROUP BENEFITS | Income Statements |  | 21
| Supplemental Data |  | 22
HARTFORD FUNDS | Income Statements |  | 23
| Asset Value Rollforward - Assets Under Management By Asset Class |  | 24
CORPORATE | Income Statements |  | 25
INVESTMENTS | Investment Income Before Tax - Consolidated |  | 26
| Investment Income Before Tax - Property & Casualty |  | 27
| Investment Income Before Tax - Group Benefits |  | 28
| Net Investment Income |  | 29
| Components of Net Realized Capital Gains (Losses) |  | 30
| Composition of Invested Assets |  | 31
| Invested Asset Exposures |  | 32
APPENDIX | Basis of Presentation and Definitions |  | 33
| Discussion of Non-GAAP and Other Financial Measures |  | 34

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATED FINANCIAL RESULTS

| THREE MONTHS ENDED |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
HIGHLIGHTS |  |  |  |  |  |  |  |  |  |  |
Net income | $ | 249 |  | $ | 537 |  | $ | 459 |  | $ | 468 |  | $ | 273 |  |  |  |  |  |  |
Net income available to common stockholders [1] | $ | 244 |  | $ | 532 |  | $ | 453 |  | $ | 463 |  | $ | 268 |  |  |  |  |  |  |
Core earnings* | $ | 203 |  | $ | 636 |  | $ | 527 |  | $ | 438 |  | $ | 485 |  |  |  |  |  |  |
Total revenues | $ | 5,299 |  | $ | 5,328 |  | $ | 5,171 |  | $ | 5,068 |  | $ | 4,956 |  |  |  |  |  |  |
Total assets | $ | 74,201 |  | $ | 74,111 |  | $ | 72,319 |  | $ | 70,990 |  | $ | 68,724 |  |  |  |  |  |  |
PER SHARE AND SHARES DATA |  |  |  |  |  |  |  |  |  |  |
Basic earnings per common share |  |  |  |  |  |  |  |  |  |  |
Net income available to common stockholders | $ | 0.68 |  | $ | 1.48 |  | $ | 1.26 |  | $ | 1.29 |  | $ | 0.75 |  |  |  |  |  |  |
Core earnings* | $ | 0.57 |  | $ | 1.77 |  | $ | 1.47 |  | $ | 1.22 |  | $ | 1.35 |  |  |  |  |  |  |
Diluted earnings per common share |  |  |  |  |  |  |  |  |  |  |
Net income available to common stockholders | $ | 0.67 |  | $ | 1.47 |  | $ | 1.26 |  | $ | 1.29 |  | $ | 0.74 |  |  |  |  |  |  |
Core earnings* | $ | 0.56 |  | $ | 1.76 |  | $ | 1.46 |  | $ | 1.22 |  | $ | 1.34 |  |  |  |  |  |  |
Weighted average common shares outstanding (basic) | 358.2 |  | 358.4 |  | 358.3 |  | 358.1 |  | 358.5 |  |  |  |  |  |  |
Dilutive effect of stock compensation | 4.0 |  | 3.1 |  | 2.2 |  | 1.2 |  | 2.6 |  |  |  |  |  |  |
Weighted average common shares outstanding and dilutive potential common shares (diluted) | 362.2 |  | 361.5 |  | 360.5 |  | 359.3 |  | 361.1 |  |  |  |  |  |  |
Common shares outstanding | 357.5 |  | 358.5 |  | 358.2 |  | 358.1 |  | 357.9 |  |  |  |  |  |  |
Book value per common share | $ | 48.58 |  | $ | 50.83 |  | $ | 48.77 |  | $ | 46.74 |  | $ | 41.72 |  |  |  |  |  |  |
Per common share impact of accumulated other comprehensive income [2] | (0.74) |  | (3.27) |  | (2.39) |  | (1.34) |  | 2.68 |  |  |  |  |  |  |
Book value per common share (excluding AOCI)* | $ | 47.84 |  | $ | 47.56 |  | $ | 46.38 |  | $ | 45.40 |  | $ | 44.40 |  |  |  |  |  |  |
Book value per diluted share | $ | 48.04 |  | $ | 50.39 |  | $ | 48.47 |  | $ | 46.59 |  | $ | 41.42 |  |  |  |  |  |  |
Per diluted share impact of AOCI | (0.73) |  | (3.23) |  | (2.38) |  | (1.34) |  | 2.65 |  |  |  |  |  |  |
Book value per diluted share (excluding AOCI)* | $ | 47.31 |  | $ | 47.16 |  | $ | 46.09 |  | $ | 45.25 |  | $ | 44.07 |  |  |  |  |  |  |
Common shares outstanding and dilutive potential common shares | 361.5 |  | 361.6 |  | 360.4 |  | 359.3 |  | 360.5 |  |  |  |  |  |  |
RETURN ON COMMON STOCKHOLDER'S EQUITY ("ROE") [3] |  |  |  |  |  |  |  |  |  |  |
Net income available to common stockholders' ROE ("Net income ROE") | 10.5 | % | 10.0 | % | 10.4 | % | 11.3 | % | 11.8 | % |  |  |  |  |  |
Core earnings ROE* | 10.9 | % | 12.7 | % | 12.3 | % | 12.7 | % | 13.3 | % |  |  |  |  |  |

[1]Net income available to common stockholders includes the impact of preferred stock dividends.
[2]Accumulated other comprehensive income ("AOCI") represents net of tax unrealized gain (loss) on fixed maturities, net gain (loss) on cash flow hedging instruments, foreign currency translation adjustments, and pension and other postretirement benefit plan adjustments.
[3]For reconciliation of Net income ROE to Core earnings ROE, see Appendix beginning on page 33.
1

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS

| THREE MONTHS ENDED |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
Earned premiums | $ | 4,343 |  | $ | 4,316 |  | $ | 4,347 |  | $ | 4,234 |  | $ | 4,391 |  |  |  |  |  |  |
Fee income | 355 |  | 336 |  | 323 |  | 298 |  | 320 |  |  |  |  |  |  |
Net investment income | 509 |  | 556 |  | 492 |  | 339 |  | 459 |  |  |  |  |  |  |
Net realized capital gains (losses) | 80 |  | 102 |  | 6 |  | 109 |  | (231) |  |  |  |  |  |  |
Other revenues | 12 |  | 18 |  | 3 |  | 88 |  | 17 |  |  |  |  |  |  |
Total revenues | 5,299 |  | 5,328 |  | 5,171 |  | 5,068 |  | 4,956 |  |  |  |  |  |  |
Benefits, losses and loss adjustment expenses [1] | 3,350 |  | 3,080 |  | 2,962 |  | 2,847 |  | 2,916 |  |  |  |  |  |  |
Amortization of deferred acquisition costs ("DAC") | 416 |  | 419 |  | 421 |  | 429 |  | 437 |  |  |  |  |  |  |
Insurance operating costs and other expenses | 1,144 |  | 1,086 |  | 1,093 |  | 1,125 |  | 1,176 |  |  |  |  |  |  |
Interest expense | 57 |  | 57 |  | 58 |  | 57 |  | 64 |  |  |  |  |  |  |
Amortization of other intangible assets | 18 |  | 17 |  | 18 |  | 18 |  | 19 |  |  |  |  |  |  |
Restructuring and other costs [2] | 11 |  | 17 |  | 87 |  | — |  | — |  |  |  |  |  |  |
Total benefits, losses and expenses | 4,996 |  | 4,676 |  | 4,639 |  | 4,476 |  | 4,612 |  |  |  |  |  |  |
Income before income taxes | 303 |  | 652 |  | 532 |  | 592 |  | 344 |  |  |  |  |  |  |
Income tax expense | 54 |  | 115 |  | 73 |  | 124 |  | 71 |  |  |  |  |  |  |
Net income | 249 |  | 537 |  | 459 |  | 468 |  | 273 |  |  |  |  |  |  |
Preferred stock dividends | 5 |  | 5 |  | 6 |  | 5 |  | 5 |  |  |  |  |  |  |
Net income available to common stockholders | 244 |  | 532 |  | 453 |  | 463 |  | 268 |  |  |  |  |  |  |
Adjustments to reconcile net income available to common stockholders to core earnings: |  |  |  |  |  |  |  |  |  |  |
Net realized capital losses (gains), excluded from core earnings, before tax | (77) |  | (101) |  | (6) |  | (107) |  | 232 |  |  |  |  |  |  |
Restructuring and other costs, before tax [2] | 11 |  | 17 |  | 87 |  | — |  | — |  |  |  |  |  |  |
Integration and transaction costs associated with acquired business, before tax [3] | 9 |  | 11 |  | 14 |  | 13 |  | 13 |  |  |  |  |  |  |
Change in deferred gain on retroactive reinsurance, before tax [4] | 6 |  | 215 |  | 14 |  | 54 |  | 29 |  |  |  |  |  |  |
Income tax expense (benefit) [5] | 10 |  | (38) |  | (35) |  | 15 |  | (57) |  |  |  |  |  |  |
Core earnings | $ | 203 |  | $ | 636 |  | $ | 527 |  | $ | 438 |  | $ | 485 |  |  |  |  |  |  |

[1]The three months ended March 31, 2021 included $24 of P&C incurred losses arising from the Coronavirus Disease 2019 ("COVID-19") pandemic. In addition, for the three months ended March 31, 2021, Group Benefits included $185 of incurred losses from excess mortality, primarily caused by direct and indirect impacts of COVID-19. The three months ended March 31, 2021 and 2020 included $13 and $16, respectively of COVID-19 related losses from short-term disability and New York Paid Family Leave claims. The three months ended March 31, 2021 also included an increase in reserves for sexual molestation and sexual abuse claims, primarily related to an agreement to settle claims against the Boy Scouts of America. See note [1] on page 9 for more information.
[2]Represents restructuring costs related to the Company's Hartford Next operational transformation and cost reduction plan.
[3]The three months ended March 31, 2021 included Navigators Group acquisition integration costs of $7 and integration costs related to the 2017 acquisition of Aetna's group benefits business of $2. The three month period ended March 31, 2020 included Navigators Group acquisition transaction and integration costs of $8, as well as integration costs related to the 2017 acquisition of Aetna's group benefits business of $5.
[4]As of March 31, 2021, the Company has cumulatively ceded $215 of losses to the Navigators adverse development cover ("Navigators ADC") that reinsures adverse development on Navigators' 2018 and prior accident year reserves, including $6 ceded for the three months ended March 31, 2021. Of the $215 of cumulative losses ceded, $124 of the ceded losses has been recognized as a deferred gain within other liabilities as of March 31, 2021 since the Navigators ADC has been accounted for as retroactive reinsurance and cumulative losses ceded exceed the ceded premium paid of $91. As the Company has ceded $215 of the $300 available limit, there is $85 of remaining limit available as of March 31, 2021.
[5]Primarily represents federal income tax expense (benefit) related to before tax items not included in core earnings.
2

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
OPERATING RESULTS BY SEGMENT

| THREE MONTHS ENDED |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
Net income (loss): |  |  |  |  |  |  |  |  |  |  |
Commercial Lines | $ | 129 |  | $ | 478 |  | $ | 323 |  | $ | (66) |  | $ | 121 |  |  |  |  |  |  |
Personal Lines | 135 |  | 170 |  | 79 |  | 371 |  | 98 |  |  |  |  |  |  |
P&C Other Operations | (13) |  | (180) |  | 2 |  | 5 |  | 5 |  |  |  |  |  |  |
Property & Casualty ("P&C") | 251 |  | 468 |  | 404 |  | 310 |  | 224 |  |  |  |  |  |  |
Group Benefits | 9 |  | 59 |  | 119 |  | 101 |  | 104 |  |  |  |  |  |  |
Hartford Funds | 47 |  | 51 |  | 44 |  | 39 |  | 36 |  |  |  |  |  |  |
Sub-total | 307 |  | 578 |  | 567 |  | 450 |  | 364 |  |  |  |  |  |  |
Corporate | (58) |  | (41) |  | (108) |  | 18 |  | (91) |  |  |  |  |  |  |
Net income | 249 |  | 537 |  | 459 |  | 468 |  | 273 |  |  |  |  |  |  |
Preferred stock dividends | 5 |  | 5 |  | 6 |  | 5 |  | 5 |  |  |  |  |  |  |
Net income available to common stockholders | $ | 244 |  | $ | 532 |  | $ | 453 |  | $ | 463 |  | $ | 268 |  |  |  |  |  |  |
Core earnings (losses): |  |  |  |  |  |  |  |  |  |  |
Commercial Lines | $ | 105 |  | $ | 444 |  | $ | 349 |  | $ | (57) |  | $ | 262 |  |  |  |  |  |  |
Personal Lines | 131 |  | 164 |  | 77 |  | 364 |  | 117 |  |  |  |  |  |  |
P&C Other Operations | (15) |  | (16) |  | 2 |  | 2 |  | 11 |  |  |  |  |  |  |
P&C | 221 |  | 592 |  | 428 |  | 309 |  | 390 |  |  |  |  |  |  |
Group Benefits | (3) |  | 49 |  | 116 |  | 102 |  | 115 |  |  |  |  |  |  |
Hartford Funds | 45 |  | 46 |  | 40 |  | 33 |  | 44 |  |  |  |  |  |  |
Sub-total | 263 |  | 687 |  | 584 |  | 444 |  | 549 |  |  |  |  |  |  |
Corporate | (60) |  | (51) |  | (57) |  | (6) |  | (64) |  |  |  |  |  |  |
Core earnings | $ | 203 |  | $ | 636 |  | $ | 527 |  | $ | 438 |  | $ | 485 |  |  |  |  |  |  |

3

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATING BALANCE SHEETS

| PROPERTY & CASUALTY |  | GROUP BENEFITS |  | HARTFORD FUNDS |  | CORPORATE [1] |  | CONSOLIDATED
| Mar 31 2021 | Dec 31 2020 |  | Mar 31 2021 | Dec 31 2020 |  | Mar 31 2021 | Dec 31 2020 |  | Mar 31 2021 | Dec 31 2020 |  | Mar 31 2021 | Dec 31 2020
Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturities, available-for-sale ("AFS"), at fair value | $ | 33,288 |  | $ | 34,173 |  |  | $ | 9,927 |  | $ | 10,521 |  |  | $ | — |  | $ | — |  |  | $ | 392 |  | $ | 341 |  |  | $ | 43,607 |  | $ | 45,035 |
Equity securities, at fair value | 1,067 |  | 961 |  |  | 280 |  | 204 |  |  | 78 |  | 74 |  |  | 207 |  | 199 |  |  | 1,632 |  | 1,438 |
Mortgage loans, net | 3,212 |  | 3,133 |  |  | 1,376 |  | 1,360 |  |  | — |  | — |  |  | — |  | — |  |  | 4,588 |  | 4,493 |
Limited partnerships and other alternative investments | 1,899 |  | 1,711 |  |  | 427 |  | 371 |  |  | — |  | — |  |  | — |  | — |  |  | 2,326 |  | 2,082 |
Other investments | 154 |  | 143 |  |  | 6 |  | 7 |  |  | 31 |  | 30 |  |  | 16 |  | 21 |  |  | 207 |  | 201 |
Short-term investments | 1,155 |  | 1,086 |  |  | 207 |  | 254 |  |  | 273 |  | 238 |  |  | 1,732 |  | 1,705 |  |  | 3,367 |  | 3,283 |
Total investments | 40,775 |  | 41,207 |  |  | 12,223 |  | 12,717 |  |  | 382 |  | 342 |  |  | 2,347 |  | 2,266 |  |  | 55,727 |  | 56,532 |
Cash | 149 |  | 120 |  |  | 12 |  | 13 |  |  | 2 |  | 15 |  |  | 13 |  | 3 |  |  | 176 |  | 151 |
Restricted cash | 95 |  | 82 |  |  | 9 |  | 6 |  |  | — |  | — |  |  | — |  | — |  |  | 104 |  | 88 |
Premiums receivable and agents’ balances, net | 3,934 |  | 3,779 |  |  | 553 |  | 489 |  |  | — |  | — |  |  | — |  | — |  |  | 4,487 |  | 4,268 |
Reinsurance recoverables, net [2] | 5,520 |  | 5,461 |  |  | 256 |  | 244 |  |  | — |  | — |  |  | 307 |  | 306 |  |  | 6,083 |  | 6,011 |
DAC | 780 |  | 744 |  |  | 40 |  | 38 |  |  | 7 |  | 7 |  |  | — |  | — |  |  | 827 |  | 789 |
Deferred income taxes | (109) |  | (240) |  |  | (224) |  | (277) |  |  | 1 |  | 2 |  |  | 537 |  | 561 |  |  | 205 |  | 46 |
Goodwill | 778 |  | 778 |  |  | 723 |  | 723 |  |  | 181 |  | 181 |  |  | 229 |  | 229 |  |  | 1,911 |  | 1,911 |
Property and equipment, net | 935 |  | 961 |  |  | 80 |  | 83 |  |  | 12 |  | 12 |  |  | 65 |  | 66 |  |  | 1,092 |  | 1,122 |
Other intangible assets | 449 |  | 462 |  |  | 468 |  | 478 |  |  | 10 |  | 10 |  |  | — |  | — |  |  | 927 |  | 950 |
Other assets | 1,778 |  | 1,425 |  |  | 259 |  | 218 |  |  | 97 |  | 93 |  |  | 363 |  | 330 |  |  | 2,497 |  | 2,066 |
Assets held for sale [3] | 165 |  | 177 |  |  | — |  | — |  |  | — |  | — |  |  | — |  | — |  |  | 165 |  | 177 |
Total assets | $ | 55,249 |  | $ | 54,956 |  |  | $ | 14,399 |  | $ | 14,732 |  |  | $ | 692 |  | $ | 662 |  |  | $ | 3,861 |  | $ | 3,761 |  |  | $ | 74,201 |  | $ | 74,111 |
Unpaid losses and loss adjustment expenses | $ | 30,332 |  | $ | 29,622 |  |  | $ | 8,208 |  | $ | 8,233 |  |  | $ | — |  | $ | — |  |  | $ | — |  | $ | — |  |  | $ | 38,540 |  | $ | 37,855 |
Reserves for future policy benefits [2] | — |  | — |  |  | 415 |  | 420 |  |  | — |  | — |  |  | 226 |  | 218 |  |  | 641 |  | 638 |
Other policyholder funds and benefits payable [2] | — |  | — |  |  | 413 |  | 415 |  |  | — |  | — |  |  | 268 |  | 286 |  |  | 681 |  | 701 |
Unearned premiums | 6,919 |  | 6,589 |  |  | 39 |  | 40 |  |  | — |  | — |  |  | — |  | — |  |  | 6,958 |  | 6,629 |
Debt | — |  | — |  |  | — |  | — |  |  | — |  | — |  |  | 4,353 |  | 4,352 |  |  | 4,353 |  | 4,352 |
Other liabilities | 2,578 |  | 2,631 |  |  | 283 |  | 259 |  |  | 239 |  | 211 |  |  | 2,078 |  | 2,121 |  |  | 5,178 |  | 5,222 |
Liabilities held for sale [3] | 148 |  | 158 |  |  | — |  | — |  |  | — |  | — |  |  | — |  | — |  |  | 148 |  | 158 |
Total liabilities | 39,977 |  | 39,000 |  |  | 9,358 |  | 9,367 |  |  | 239 |  | 211 |  |  | 6,925 |  | 6,977 |  |  | 56,499 |  | 55,555 |
Common stockholders' equity, excluding AOCI* | 13,978 |  | 13,997 |  |  | 4,521 |  | 4,565 |  |  | 453 |  | 451 |  |  | (1,848) |  | (1,961) |  |  | 17,104 |  | 17,052 |
Preferred stock | — |  | — |  |  | — |  | — |  |  | — |  | — |  |  | 334 |  | 334 |  |  | 334 |  | 334 |
AOCI, net of tax | 1,294 |  | 1,959 |  |  | 520 |  | 800 |  |  | — |  | — |  |  | (1,550) |  | (1,589) |  |  | 264 |  | 1,170 |
Total stockholders' equity | 15,272 |  | 15,956 |  |  | 5,041 |  | 5,365 |  |  | 453 |  | 451 |  |  | (3,064) |  | (3,216) |  |  | 17,702 |  | 18,556 |
Total liabilities and stockholders' equity | $ | 55,249 |  | $ | 54,956 |  |  | $ | 14,399 |  | $ | 14,732 |  |  | $ | 692 |  | $ | 662 |  |  | $ | 3,861 |  | $ | 3,761 |  |  | $ | 74,201 |  | $ | 74,111 |

[1]Corporate includes fixed maturities, short-term investments, investment sales receivable and cash of $1.9 billion and $1.8 billion as of March 31, 2021 and December 31, 2020, respectively, held by the holding company of The Hartford Financial Services Group, Inc. Corporate also includes investments held by Hartford Life and Accident Insurance Company ("HLA") that support reserves for run-off structured settlement and terminal funding agreement liabilities.
[2]Corporate includes retained reserves and reinsurance recoverables for the run-off life and annuity business sold.
[3]Related to the sale of Continental Europe Operations classified as held for sale beginning in the third quarter of 2020.
4

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CAPITAL STRUCTURE

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

[1]The leverage calculation reflects adjustments related to the Company’s defined benefit plans' unfunded pension liability, the Company's rental expense on operating leases and uncollateralized letters of credit for Lloyd's of London for a total adjustment of $0.9 billion and $1.0 billion as of March 31, 2021 and 2020, respectively.
[2]Reflects 25% equity credit for the Company's outstanding junior subordinated debentures and 50% equity credit for the Company’s outstanding preferred stock.
[3]Calculated as year to date total earnings divided by year to date total fixed charges. Total earnings represent income before income taxes and total fixed charges (excluding the impact of preferred stock dividends), less undistributed earnings from limited partnerships and other alternative investments. Total fixed charges include interest expense, preferred stock dividends, interest factor attributable to rent expense, capitalized interest and amortization of debt issuance costs.
5

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
STATUTORY CAPITAL TO GAAP STOCKHOLDERS’ EQUITY RECONCILIATION
MARCH 31, 2021

| P&C | GROUP BENEFITS
U.S. statutory net income (loss) [1][6] | $ | 109 |  | $ | (40) |
U.S. statutory capital [2][6] | $ | 10,839 |  | $ | 2,504 |
U.S. GAAP adjustments [6]: |  |
DAC | 770 |  | 40 |
Non-admitted deferred tax assets [3] | 222 |  | 167 |
Deferred taxes [4] | (926) |  | (542) |
Goodwill | 127 |  | 723 |
Other intangible assets | 64 |  | 468 |
Non-admitted assets other than deferred taxes | 802 |  | 106 |
Asset valuation and interest maintenance reserve | — |  | 279 |
Benefit reserves | (85) |  | 103 |
Unrealized gains on investments | 1,581 |  | 702 |
Deferred gain on retroactive reinsurance agreements [5] | (278) |  | — |
Other, net | 971 |  | 491 |
U.S. GAAP stockholders’ equity of U.S. insurance entities [6] | 14,087 |  | 5,041 |
U.S. GAAP stockholders’ equity of international subsidiaries as well as goodwill and other intangible assets related to the acquisition of Navigators Group | 1,185 |  | — |
Total U.S. GAAP stockholders’ equity | $ | 15,272 |  | $ | 5,041 |

[1]Statutory net income (loss) is for the three months ended March 31, 2021.
[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]Represents the deferred gain on retroactive reinsurance associated with U.S. entities for losses ceded to the Navigators and A&E ADC agreements that is recognized within a special category of surplus under U.S. STAT but is recorded within other liabilities under U.S. GAAP.
[6]Excludes insurance operations in the U.K. and Continental Europe.
6

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

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

7

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
INCOME STATEMENTS

| THREE MONTHS ENDED |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
Written premiums | $ | 3,218 |  | $ | 2,870 |  | $ | 2,980 |  | $ | 2,903 |  | $ | 3,152 |  |  |  |  |  |  |
Change in unearned premium reserve | 249 |  | (128) |  | (50) |  | 52 |  | 113 |  |  |  |  |  |  |
Earned premiums | 2,969 |  | 2,998 |  | 3,030 |  | 2,851 |  | 3,039 |  |  |  |  |  |  |
Fee income | 17 |  | 17 |  | 16 |  | 14 |  | 17 |  |  |  |  |  |  |
Losses and loss adjustment expenses |  |  |  |  |  |  |  |  |  |  |
Current accident year before catastrophes [1] | 1,710 |  | 1,747 |  | 1,802 |  | 1,828 |  | 1,806 |  |  |  |  |  |  |
Current accident year catastrophes [2] | 214 |  | 55 |  | 229 |  | 248 |  | 74 |  |  |  |  |  |  |
Prior accident year development [3] | 229 |  | 184 |  | (75) |  | (268) |  | 23 |  |  |  |  |  |  |
Total losses and loss adjustment expenses | 2,153 |  | 1,986 |  | 1,956 |  | 1,808 |  | 1,903 |  |  |  |  |  |  |
Amortization of DAC | 402 |  | 405 |  | 404 |  | 412 |  | 420 |  |  |  |  |  |  |
Underwriting expenses [4] | 544 |  | 520 |  | 539 |  | 540 |  | 597 |  |  |  |  |  |  |
Amortization of other intangible assets | 8 |  | 7 |  | 8 |  | 9 |  | 8 |  |  |  |  |  |  |
Dividends to policyholders | 6 |  | 6 |  | 8 |  | 7 |  | 8 |  |  |  |  |  |  |
Underwriting gain (loss)* | (127) |  | 91 |  | 131 |  | 89 |  | 120 |  |  |  |  |  |  |
Net investment income | 378 |  | 425 |  | 371 |  | 242 |  | 334 |  |  |  |  |  |  |
Net realized capital gains (losses) | 53 |  | 54 |  | (21) |  | 74 |  | (173) |  |  |  |  |  |  |
Net servicing and other income (expense) | 2 |  | (3) |  | (4) |  | (7) |  | (3) |  |  |  |  |  |  |
Income before income taxes | 306 |  | 567 |  | 477 |  | 398 |  | 278 |  |  |  |  |  |  |
Income tax expense | 55 |  | 99 |  | 73 |  | 88 |  | 54 |  |  |  |  |  |  |
Net income | 251 |  | 468 |  | 404 |  | 310 |  | 224 |  |  |  |  |  |  |
Adjustments to reconcile net income to core earnings: |  |  |  |  |  |  |  |  |  |  |
Net realized capital losses (gains), excluded from core earnings, before tax | (51) |  | (54) |  | 20 |  | (71) |  | 173 |  |  |  |  |  |  |
Integration and transaction costs associated with an acquired business, before tax | 7 |  | 8 |  | 9 |  | 8 |  | 8 |  |  |  |  |  |  |
Change in deferred gain on retroactive reinsurance, before tax [3] | 6 |  | 215 |  | 14 |  | 54 |  | 29 |  |  |  |  |  |  |
Income tax expense (benefit) [5] | 8 |  | (45) |  | (19) |  | 8 |  | (44) |  |  |  |  |  |  |
Core earnings | $ | 221 |  | $ | 592 |  | $ | 428 |  | $ | 309 |  | $ | 390 |  |  |  |  |  |  |
ROE |  |  |  |  |  |  |  |  |  |  |
Net income available to common stockholders [6] | 11.5 | % | 10.6 | % | 10.2 | % | 11.0 | % | 12.7 | % |  |  |  |  |  |
Adjustments to reconcile net income available to common stockholders to core earnings: |  |  |  |  |  |  |  |  |  |  |
Net realized capital losses (gains), excluded from core earnings, before tax | (1.4 | %) | 0.6 | % | 0.6 | % | (0.2 | %) | (0.2 | %) |  |  |  |  |  |
Loss on reinsurance transaction, before tax | — | % | — | % | — | % | — | % | 1.0 | % |  |  |  |  |  |
Integration and transaction costs associated with an acquired business, before tax | 0.3 | % | 0.3 | % | 0.3 | % | 0.4 | % | 0.5 | % |  |  |  |  |  |
Changes in loss reserves upon acquisition of a business, before tax | — | % | — | % | — | % | — | % | 1.1 | % |  |  |  |  |  |
Change in deferred gain on retroactive reinsurance, before tax [3] | 2.6 | % | 2.6 | % | 1.0 | % | 0.9 | % | 0.5 | % |  |  |  |  |  |
Income tax expense (benefit) [5] | (0.4 | %) | (0.8 | %) | (0.4 | %) | (0.2 | %) | (0.6 | %) |  |  |  |  |  |
Impact of AOCI, excluded from core earnings ROE | 0.7 | % | 1.7 | % | 1.5 | % | 1.4 | % | 0.5 | % |  |  |  |  |  |
Core earnings [6] | 13.3 | % | 15.0 | % | 13.2 | % | 13.3 | % | 15.5 | % |  |  |  |  |  |

[1]The three months ended March 31, 2021 included $24 of COVID-19 losses and loss adjustment expenses in Commercial Lines, including $20 in workers' compensation and $4 in financial lines and other.
[2]Catastrophe losses for the three months ended March 31, 2021 of $214, included $176 from February winter storms primarily in the South, with the remaining $38 from various wind and hail events, mostly concentrated in the South and along the Pacific Coast. The $176 of losses from the February winter storms is net of a $46 reinsurance recoverable under the Company's per occurrence catastrophe treaty that covers 70% of up to $250 of losses in excess of $100 on catastrophe events occurring within a 7-day period other than from earthquakes and named hurricanes and tropical storms, subject to a $50 annual aggregate deductible.
[3]Prior accident year development does not include a benefit for the portion of losses ceded to NICO in excess of ceded premium paid under the Navigators and A&E ADC agreements which is recognized as a deferred gain under retroactive reinsurance accounting. See [4] on page 2 for more information.
[4]The three months ended March 31, 2021 and 2020 included an increase (decrease) in the ACL on premiums receivable of ($4) and $18, respectively, related to the increasing (lessening) impacts of COVID-19.
[5]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.
[6]Net income ROE and Core earnings ROE are calculated by allocating a portion of debt, interest expense, preferred stock and preferred stock dividends accounted for within Corporate to Property & Casualty.
8

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
INCOME STATEMENTS (CONTINUED)

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

[1]Three months ended March 31, 2021 includes an increase in reserves for sexual molestation and sexual abuse claims, primarily related to an agreement to settle claims against the Boy Scouts of America ("BSA"). Under the settlement agreement, the Company will pay $650, before tax, for sexual molestation and sexual abuse claims associated with policies mostly issued in the 1970s. The agreement becomes effective upon the occurrence of certain conditions, including confirmation of BSA's global resolution plan, executed releases from the local councils, and approval from the abuse claimants and bankruptcy court.
[2]See [3] on page 8 for discussion related to the deferred gain on retroactive reinsurance. For the three months ended March 31, 2021, the $6 increase in the deferred gain relates to ceding losses to the Navigators ADC in excess of ceded premium paid. For the three months ended March 31, 2021 and 2020, adverse development on Navigators 2018 and prior accident year reserves was primarily driven by marine for both periods and by commercial automobile liability in the 2021 period and prior accident year catastrophes in the 2020 period. For the three months ended December 31, 2020, the $215 increase in the deferred gain primarily represented adverse development for A&E of $210 in excess of the ceded premium paid for the A&E ADC.
9

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
UNDERWRITING RATIOS

| THREE MONTHS ENDED |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
UNDERWRITING GAIN (LOSS) | $ | (127) |  | $ | 91 |  | $ | 131 |  | $ | 89 |  | $ | 120 |  |  |  |  |  |  |
UNDERWRITING RATIOS |  |  |  |  |  |  |  |  |  |  |
Losses and loss adjustment expenses |  |  |  |  |  |  |  |  |  |  |
Current accident year before catastrophes [1] | 57.6 |  | 58.3 |  | 59.5 |  | 64.1 |  | 59.4 |  |  |  |  |  |  |
Current accident year catastrophes | 7.2 |  | 1.8 |  | 7.6 |  | 8.7 |  | 2.4 |  |  |  |  |  |  |
Prior accident year development [2] | 7.7 |  | 6.1 |  | (2.5) |  | (9.4) |  | 0.8 |  |  |  |  |  |  |
Total losses and loss adjustment expenses | 72.5 |  | 66.2 |  | 64.6 |  | 63.4 |  | 62.6 |  |  |  |  |  |  |
Expenses [3][4] | 31.6 |  | 30.5 |  | 30.9 |  | 33.2 |  | 33.2 |  |  |  |  |  |  |
Policyholder dividends | 0.2 |  | 0.2 |  | 0.3 |  | 0.2 |  | 0.3 |  |  |  |  |  |  |
Combined ratio | 104.3 |  | 97.0 |  | 95.7 |  | 96.9 |  | 96.1 |  |  |  |  |  |  |
Adjustments to reconcile combined ratio to underlying combined ratio: |  |  |  |  |  |  |  |  |  |  |
Current accident year catastrophes and prior accident year development | (14.9) |  | (7.9) |  | (5.1) |  | 0.7 |  | (3.2) |  |  |  |  |  |  |
Underlying combined ratio * | 89.4 |  | 89.0 |  | 90.6 |  | 97.6 |  | 92.9 |  |  |  |  |  |  |

[1]The three months ended March 31, 2021 included COVID-19 losses of 0.8 points. See [1] on page 8.
[2]See [3] on page 8 for discussion related to the deferred gain on retroactive reinsurance.
[3]Integration and transaction costs related to the acquisition of Navigators Group are not included in the expense ratio.
[4]The three months ended March 31, 2021 and 2020 included an increase (decrease) in the ACL on premiums receivable of ($4) and $18 respectively, related to the increasing (lessening) impacts of COVID-19 representing (0.1) points and 0.6 points of the expense ratio, respectively.
10

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMMERCIAL LINES
INCOME STATEMENTS

| THREE MONTHS ENDED |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
Written premiums | $ | 2,503 |  | $ | 2,197 |  | $ | 2,199 |  | $ | 2,165 |  | $ | 2,408 |  |  |  |  |  |  |
Change in unearned premium reserve | 268 |  | (40) |  | (52) |  | 8 |  | 143 |  |  |  |  |  |  |
Earned premiums | 2,235 |  | 2,237 |  | 2,251 |  | 2,157 |  | 2,265 |  |  |  |  |  |  |
Fee income | 9 |  | 9 |  | 8 |  | 5 |  | 8 |  |  |  |  |  |  |
Losses and loss adjustment expenses |  |  |  |  |  |  |  |  |  |  |
Current accident year before catastrophes [1] | 1,296 |  | 1,307 |  | 1,366 |  | 1,472 |  | 1,343 |  |  |  |  |  |  |
Current accident year catastrophes [2] | 175 |  | 42 |  | 107 |  | 193 |  | 55 |  |  |  |  |  |  |
Prior accident year development [3] | 238 |  | (17) |  | (57) |  | 77 |  | 41 |  |  |  |  |  |  |
Total losses and loss adjustment expenses | 1,709 |  | 1,332 |  | 1,416 |  | 1,742 |  | 1,439 |  |  |  |  |  |  |
Amortization of DAC | 344 |  | 346 |  | 344 |  | 351 |  | 356 |  |  |  |  |  |  |
Underwriting expenses | 394 |  | 373 |  | 391 |  | 387 |  | 443 |  |  |  |  |  |  |
Amortization of other intangible assets | 7 |  | 6 |  | 8 |  | 7 |  | 7 |  |  |  |  |  |  |
Dividends to policyholders | 6 |  | 6 |  | 8 |  | 7 |  | 8 |  |  |  |  |  |  |
Underwriting gain (loss) | (216) |  | 183 |  | 92 |  | (332) |  | 20 |  |  |  |  |  |  |
Net servicing income | 2 |  | 2 |  | 1 |  | — |  | 1 |  |  |  |  |  |  |
Net investment income | 327 |  | 363 |  | 316 |  | 204 |  | 277 |  |  |  |  |  |  |
Net realized capital gains (losses) | 44 |  | 45 |  | (26) |  | 64 |  | (143) |  |  |  |  |  |  |
Other expenses | (4) |  | (10) |  | (8) |  | (11) |  | (6) |  |  |  |  |  |  |
Income (loss) before income taxes | 153 |  | 583 |  | 375 |  | (75) |  | 149 |  |  |  |  |  |  |
Income tax expense (benefit) | 24 |  | 105 |  | 52 |  | (9) |  | 28 |  |  |  |  |  |  |
Net income (loss) | 129 |  | 478 |  | 323 |  | (66) |  | 121 |  |  |  |  |  |  |
Adjustments to reconcile net income to core earnings: |  |  |  |  |  |  |  |  |  |  |
Net realized capital losses (gains), excluded from core earnings, before tax | (43) |  | (46) |  | 25 |  | (61) |  | 143 |  |  |  |  |  |  |
Integration and transaction costs associated with an acquired business, before tax [4] | 7 |  | 8 |  | 9 |  | 8 |  | 8 |  |  |  |  |  |  |
Change in deferred gain on retroactive reinsurance, before tax [3] | 6 |  | 5 |  | 14 |  | 54 |  | 29 |  |  |  |  |  |  |
Income tax expense (benefit) [5] | 6 |  | (1) |  | (22) |  | 8 |  | (39) |  |  |  |  |  |  |
Core earnings (losses) | $ | 105 |  | $ | 444 |  | $ | 349 |  | $ | (57) |  | $ | 262 |  |  |  |  |  |  |

[1]See [1] on page 8 for impact related to COVID-19.
[2]Catastrophe losses for the three months ended March 31, 2021 of $175, included $154 from February winter storms primarily in the South, with the remaining $21 from various wind and hail events, mostly concentrated in the South and along the Pacific Coast. Refer to [2] on page 8 for more information.
[3]See [3] on page 8 for discussion related to the deferred gain on retroactive reinsurance. See [1] on page 9 for discussion related to general liability prior year development.
[4]Includes Navigators Group integration costs.
[5]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.
11

Table of Contents

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 |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
Auto liability | $ | — |  | $ | — |  | $ | — |  | $ | 22 |  | $ | 5 |  |  |  |  |  |  |
Professional liability | (1) |  | 2 |  | (21) |  | 4 |  | 1 |  |  |  |  |  |  |
Package business | (27) |  | (34) |  | (18) |  | (7) |  | 1 |  |  |  |  |  |  |
General liability [1] | 307 |  | 125 |  | (2) |  | 102 |  | 12 |  |  |  |  |  |  |
Marine | 6 |  | 2 |  | — |  | 1 |  | — |  |  |  |  |  |  |
Bond | — |  | (9) |  | — |  | (10) |  | — |  |  |  |  |  |  |
Assumed Reinsurance | 2 |  | 1 |  | — |  | (7) |  | — |  |  |  |  |  |  |
Commercial property | (13) |  | 2 |  | (4) |  | 5 |  | (7) |  |  |  |  |  |  |
Workers’ compensation | (40) |  | (38) |  | (34) |  | (21) |  | (17) |  |  |  |  |  |  |
Workers' compensation discount accretion | 9 |  | 8 |  | 9 |  | 9 |  | 9 |  |  |  |  |  |  |
Catastrophes | (4) |  | (77) |  | — |  | (67) |  | (5) |  |  |  |  |  |  |
Uncollectible reinsurance | (5) |  | — |  | — |  | — |  | — |  |  |  |  |  |  |
Other reserve re-estimates | (2) |  | (4) |  | (1) |  | (8) |  | 13 |  |  |  |  |  |  |
Prior accident year development before change in deferred gain | 232 |  | (22) |  | (71) |  | 23 |  | 12 |  |  |  |  |  |  |
Change in deferred gain on retroactive reinsurance included in other liabilities [2] | 6 |  | 5 |  | 14 |  | 54 |  | 29 |  |  |  |  |  |  |
Total prior accident year development | $ | 238 |  | $ | (17) |  | $ | (57) |  | $ | 77 |  | $ | 41 |  |  |  |  |  |  |

[1]See [1] on page 9 for discussion related to general liability prior year development.
[2]See [4] on page 2 for discussion related to the deferred gain on retroactive reinsurance. The change in deferred gain on retroactive reinsurance for the three months ended March 31, 2021 relates to ceding losses to the Navigators ADC in excess of ceded premium paid resulting in a deferred reinsurance benefit.
12

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMMERCIAL LINES
UNDERWRITING RATIOS

| THREE MONTHS ENDED |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
UNDERWRITING GAIN (LOSS) | $ | (216) |  | $ | 183 |  | $ | 92 |  | $ | (332) |  | $ | 20 |  |  |  |  |  |  |
UNDERWRITING RATIOS |  |  |  |  |  |  |  |  |  |  |
Losses and loss adjustment expenses |  |  |  |  |  |  |  |  |  |  |
Current accident year before catastrophes [1] | 58.0 |  | 58.4 |  | 60.7 |  | 68.2 |  | 59.3 |  |  |  |  |  |  |
Current accident year catastrophes | 7.8 |  | 1.9 |  | 4.8 |  | 8.9 |  | 2.4 |  |  |  |  |  |  |
Prior accident year development [2] | 10.6 |  | (0.8) |  | (2.5) |  | 3.6 |  | 1.8 |  |  |  |  |  |  |
Total losses and loss adjustment expenses | 76.5 |  | 59.5 |  | 62.9 |  | 80.8 |  | 63.5 |  |  |  |  |  |  |
Expenses [3] [4] | 32.9 |  | 32.0 |  | 32.7 |  | 34.3 |  | 35.2 |  |  |  |  |  |  |
Policyholder dividends | 0.3 |  | 0.3 |  | 0.4 |  | 0.3 |  | 0.4 |  |  |  |  |  |  |
Combined ratio [2] [5] | 109.7 |  | 91.8 |  | 95.9 |  | 115.4 |  | 99.1 |  |  |  |  |  |  |
Adjustments to reconcile combined ratio to underlying combined ratio: |  |  |  |  |  |  |  |  |  |  |
Current accident year catastrophes and prior accident year development | (18.4) |  | (1.1) |  | (2.3) |  | (12.5) |  | (4.2) |  |  |  |  |  |  |
Underlying combined ratio | 91.2 |  | 90.7 |  | 93.7 |  | 102.9 |  | 94.9 |  |  |  |  |  |  |
COMBINED RATIOS BY LINE OF BUSINESS |  |  |  |  |  |  |  |  |  |  |
SMALL COMMERCIAL |  |  |  |  |  |  |  |  |  |  |
Combined ratio | 95.4 |  | 80.2 |  | 89.5 |  | 97.4 |  | 93.2 |  |  |  |  |  |  |
Adjustments to reconcile combined ratio to underlying combined ratio: |  |  |  |  |  |  |  |  |  |  |
Current accident year catastrophes | (12.1) |  | (2.9) |  | (5.5) |  | (13.2) |  | (2.6) |  |  |  |  |  |  |
Prior accident year development | 5.0 |  | 9.7 |  | 3.7 |  | 8.7 |  | (1.3) |  |  |  |  |  |  |
Underlying combined ratio | 88.3 |  | 87.0 |  | 87.7 |  | 92.9 |  | 89.3 |  |  |  |  |  |  |
MIDDLE & LARGE COMMERCIAL |  |  |  |  |  |  |  |  |  |  |
Combined ratio | 98.9 |  | 86.5 |  | 101.2 |  | 124.3 |  | 103.8 |  |  |  |  |  |  |
Adjustments to reconcile combined ratio to underlying combined ratio: |  |  |  |  |  |  |  |  |  |  |
Current accident year catastrophes | (7.0) |  | 0.2 |  | (5.1) |  | (9.8) |  | (3.6) |  |  |  |  |  |  |
Prior accident year development | 3.3 |  | 6.3 |  | 1.6 |  | (1.6) |  | 0.2 |  |  |  |  |  |  |
Underlying combined ratio | 95.3 |  | 93.0 |  | 97.7 |  | 112.9 |  | 100.4 |  |  |  |  |  |  |
GLOBAL SPECIALTY |  |  |  |  |  |  |  |  |  |  |
Combined ratio [2] [5] | 92.4 |  | 95.1 |  | 99.6 |  | 113.8 |  | 102.2 |  |  |  |  |  |  |
Adjustments to reconcile combined ratio to underlying combined ratio: |  |  |  |  |  |  |  |  |  |  |
Current accident year catastrophes | (2.2) |  | (3.0) |  | (3.2) |  | (1.2) |  | (0.6) |  |  |  |  |  |  |
Prior accident year development [2] | (0.3) |  | 1.3 |  | 1.8 |  | (7.1) |  | (5.2) |  |  |  |  |  |  |
Underlying combined ratio | 89.9 |  | 93.3 |  | 98.2 |  | 105.5 |  | 96.4 |  |  |  |  |  |  |

[1]The three months ended March 31, 2021 included COVID-19 losses, of 1.1 points. See [1] on page 8.
[2]See [2] on page 9 for discussion related to the change in deferred gain on retroactive reinsurance for the three months ended March 31, 2021 and 2020.
[3]Integration and transaction costs related to the acquisition of Navigators Group are not included in the expense ratio.
[4]The three months ended March 31, 2021 and 2020 included a ($4) and $17, respectively, before-tax increase in the ACL on premiums receivable related to the increasing (lessening) impacts of COVID-19 representing (0.2) points and 0.8 points, respectively, of the expense ratio.
[5]The three months ended March 31, 2021 and 2020 included a change in deferred gain on retroactive reinsurance related to the Navigators ADC of $6 and $29, respectively, representing 0.3 and 1.3 points, respectively, of the Commercial Lines combined ratio and 1.1 points and 5.3 points, respectively, of the global specialty combined ratio.
13

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMMERCIAL LINES
SUPPLEMENTAL DATA

| THREE MONTHS ENDED |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
WRITTEN PREMIUMS |  |  |  |  |  |  |  |  |  |  |
Small Commercial | $ | 1,053 |  | $ | 873 |  | $ | 890 |  | $ | 877 |  | $ | 1,011 |  |  |  |  |  |  |
Middle & Large Commercial | 775 |  | 746 |  | 750 |  | 683 |  | 797 |  |  |  |  |  |  |
Middle Market | 662 |  | 647 |  | 653 |  | 609 |  | 680 |  |  |  |  |  |  |
National Accounts and Other | 113 |  | 99 |  | 97 |  | 74 |  | 117 |  |  |  |  |  |  |
Global Specialty [1] | 665 |  | 568 |  | 549 |  | 595 |  | 589 |  |  |  |  |  |  |
U.S. | 421 |  | 395 |  | 395 |  | 389 |  | 379 |  |  |  |  |  |  |
International | 110 |  | 107 |  | 88 |  | 119 |  | 98 |  |  |  |  |  |  |
Global Re | 134 |  | 66 |  | 66 |  | 87 |  | 112 |  |  |  |  |  |  |
Other | 10 |  | 10 |  | 10 |  | 10 |  | 11 |  |  |  |  |  |  |
Total | $ | 2,503 |  | $ | 2,197 |  | $ | 2,199 |  | $ | 2,165 |  | $ | 2,408 |  |  |  |  |  |  |
EARNED PREMIUMS |  |  |  |  |  |  |  |  |  |  |
Small Commercial | $ | 916 |  | $ | 908 |  | $ | 935 |  | $ | 877 |  | $ | 930 |  |  |  |  |  |  |
Middle & Large Commercial | 752 |  | 742 |  | 749 |  | 713 |  | 772 |  |  |  |  |  |  |
Middle Market | 653 |  | 649 |  | 646 |  | 625 |  | 673 |  |  |  |  |  |  |
National Accounts and Other | 99 |  | 93 |  | 103 |  | 88 |  | 99 |  |  |  |  |  |  |
Global Specialty [1] | 556 |  | 577 |  | 555 |  | 557 |  | 552 |  |  |  |  |  |  |
U.S. | 386 |  | 386 |  | 387 |  | 368 |  | 374 |  |  |  |  |  |  |
International | 102 |  | 99 |  | 101 |  | 117 |  | 112 |  |  |  |  |  |  |
Global Re | 68 |  | 92 |  | 67 |  | 72 |  | 66 |  |  |  |  |  |  |
Other | 11 |  | 10 |  | 12 |  | 10 |  | 11 |  |  |  |  |  |  |
Total | $ | 2,235 |  | $ | 2,237 |  | $ | 2,251 |  | $ | 2,157 |  | $ | 2,265 |  |  |  |  |  |  |
COMMERCIAL LINES STATISTICAL PREMIUM INFORMATION |  |  |  |  |  |  |  |  |  |  |
Small Commercial |  |  |  |  |  |  |  |  |  |  |
Net New Business Premium | $ | 176 |  | $ | 153 |  | $ | 129 |  | $ | 118 |  | $ | 157 |  |  |  |  |  |  |
Renewal Written Price Increases | 2.1 | % | 2.0 | % | 1.6 | % | 1.8 | % | 2.3 | % |  |  |  |  |  |
Policy Count Retention | 86 | % | 84 | % | 79 | % | 88 | % | 84 | % |  |  |  |  |  |
Policies in Force (in thousands) | 1,304 |  | 1,283 |  | 1,278 |  | 1,297 |  | 1,291 |  |  |  |  |  |  |
Middle Market [2] |  |  |  |  |  |  |  |  |  |  |
Net New Business Premium | $ | 122 |  | $ | 124 |  | $ | 131 |  | $ | 99 |  | $ | 125 |  |  |  |  |  |  |
Renewal Written Price Increases | 6.0 | % | 7.3 | % | 7.9 | % | 7.2 | % | 7.6 | % |  |  |  |  |  |
Policy Count Retention | 81 | % | 77 | % | 77 | % | 79 | % | 77 | % |  |  |  |  |  |
Policies in Force (in thousands) | 58 |  | 59 |  | 59 |  | 60 |  | 62 |  |  |  |  |  |  |
Global Specialty |  |  |  |  |  |  |  |  |  |  |
U.S. - Renewal Written Price Increases | 14.6 | % | 19.1 | % | 20.3 | % | 19.1 | % | 11.5 | % |  |  |  |  |  |
International - Renewal Written Price Increases [3] | 27.7 | % | 49.0 | % | 53.7 | % | 46.4 | % | 22.0 | % |  |  |  |  |  |
Gross New Business Premium [4] | $ | 216 |  | $ | 184 |  | $ | 185 |  | $ | 186 |  | $ | 197 |  |  |  |  |  |  |

[1]U.S. business includes a small amount of business issued by U.S. insurance entities to U.S. policyholders with international-based exposures ("multinational exposure"). International represents Navigators Group business written in either Lloyd's market or other international markets, which includes U.S.-based exposures.
[2]Middle market disclosures exclude loss sensitive and programs businesses.
[3]Excludes offshore energy policies, political violence and terrorism policies, and any business under which the managing agent of our Lloyd's Syndicate 1221 (our "Lloyd’s Syndicate") delegates underwriting authority to coverholders and other third parties.
[4]Excludes Global Re and Continental Europe Operations and is before ceded reinsurance.
14

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PERSONAL LINES
INCOME STATEMENTS

| THREE MONTHS ENDED |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
Written premiums | $ | 715 |  | $ | 673 |  | $ | 781 |  | $ | 738 |  | $ | 744 |  |  |  |  |  |  |
Change in unearned premium reserve | (19) |  | (88) |  | 2 |  | 44 |  | (30) |  |  |  |  |  |  |
Earned premiums | 734 |  | 761 |  | 779 |  | 694 |  | 774 |  |  |  |  |  |  |
Fee income | 8 |  | 8 |  | 8 |  | 9 |  | 9 |  |  |  |  |  |  |
Losses and loss adjustment expenses |  |  |  |  |  |  |  |  |  |  |
Current accident year before catastrophes | 414 |  | 440 |  | 436 |  | 356 |  | 463 |  |  |  |  |  |  |
Current accident year catastrophes [1] | 39 |  | 13 |  | 122 |  | 55 |  | 19 |  |  |  |  |  |  |
Prior accident year development | (42) |  | (42) |  | (29) |  | (349) |  | (18) |  |  |  |  |  |  |
Total losses and loss adjustment expenses | 411 |  | 411 |  | 529 |  | 62 |  | 464 |  |  |  |  |  |  |
Amortization of DAC | 58 |  | 59 |  | 60 |  | 61 |  | 64 |  |  |  |  |  |  |
Underwriting expenses | 148 |  | 144 |  | 146 |  | 150 |  | 151 |  |  |  |  |  |  |
Amortization of other intangible assets | 1 |  | 1 |  | — |  | 2 |  | 1 |  |  |  |  |  |  |
Underwriting gain | 124 |  | 154 |  | 52 |  | 428 |  | 103 |  |  |  |  |  |  |
Net servicing income | 4 |  | 4 |  | 5 |  | 3 |  | 2 |  |  |  |  |  |  |
Net investment income | 35 |  | 47 |  | 41 |  | 28 |  | 41 |  |  |  |  |  |  |
Net realized capital gains (losses) | 7 |  | 7 |  | 3 |  | 8 |  | (23) |  |  |  |  |  |  |
Other income (expense) | — |  | — |  | (2) |  | 1 |  | — |  |  |  |  |  |  |
Income before income taxes | 170 |  | 212 |  | 99 |  | 468 |  | 123 |  |  |  |  |  |  |
Income tax expense | 35 |  | 42 |  | 20 |  | 97 |  | 25 |  |  |  |  |  |  |
Net income | 135 |  | 170 |  | 79 |  | 371 |  | 98 |  |  |  |  |  |  |
Adjustments to reconcile net income to core earnings: |  |  |  |  |  |  |  |  |  |  |
Net realized capital losses (gains), excluded from core earnings, before tax | (6) |  | (6) |  | (3) |  | (8) |  | 23 |  |  |  |  |  |  |
Income tax expense (benefit) [2] | 2 |  | — |  | 1 |  | 1 |  | (4) |  |  |  |  |  |  |
Core earnings | $ | 131 |  | $ | 164 |  | $ | 77 |  | $ | 364 |  | $ | 117 |  |  |  |  |  |  |

[1]Catastrophe losses for the three months ended March 31, 2021 of $39, included $22 from February winter storms primarily in the South, with the remainder primarily from wind and hail events in the South and Pacific Coast. Refer to [2] on page 8 for more information.
[2]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.
15

Table of Contents

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 |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
Auto liability | $ | (23) |  | $ | (8) |  | $ | (32) |  | $ | (15) |  | $ | (6) |  |  |  |  |  |  |
Homeowners | (3) |  | 4 |  | 3 |  | 2 |  | (2) |  |  |  |  |  |  |
Catastrophes | (12) |  | (39) |  | — |  | (333) |  | (8) |  |  |  |  |  |  |
Other reserve re-estimates, net | (4) |  | 1 |  | — |  | (3) |  | (2) |  |  |  |  |  |  |
Total prior accident year development | $ | (42) |  | $ | (42) |  | $ | (29) |  | $ | (349) |  | $ | (18) |  |  |  |  |  |  |

16

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PERSONAL LINES
UNDERWRITING RATIOS

| THREE MONTHS ENDED |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
UNDERWRITING GAIN | $ | 124 |  | $ | 154 |  | $ | 52 |  | $ | 428 |  | $ | 103 |  |  |  |  |  |  |
UNDERWRITING RATIOS |  |  |  |  |  |  |  |  |  |  |
Losses and loss adjustment expenses |  |  |  |  |  |  |  |  |  |  |
Current accident year before catastrophes | 56.4 |  | 57.8 |  | 56.0 |  | 51.3 |  | 59.8 |  |  |  |  |  |  |
Current accident year catastrophes | 5.3 |  | 1.7 |  | 15.7 |  | 7.9 |  | 2.5 |  |  |  |  |  |  |
Prior accident year development | (5.7) |  | (5.5) |  | (3.7) |  | (50.3) |  | (2.3) |  |  |  |  |  |  |
Total losses and loss adjustment expenses | 56.0 |  | 54.0 |  | 67.9 |  | 8.9 |  | 59.9 |  |  |  |  |  |  |
Expenses | 27.1 |  | 25.8 |  | 25.4 |  | 29.4 |  | 26.7 |  |  |  |  |  |  |
Combined ratio | 83.1 |  | 79.8 |  | 93.3 |  | 38.3 |  | 86.7 |  |  |  |  |  |  |
Adjustment to reconcile combined ratio to underlying combined ratio: |  |  |  |  |  |  |  |  |  |  |
Current accident year catastrophes and prior accident year development | 0.4 |  | 3.8 |  | (12.0) |  | 42.4 |  | (0.2) |  |  |  |  |  |  |
Underlying combined ratio | 83.5 |  | 83.6 |  | 81.4 |  | 80.7 |  | 86.6 |  |  |  |  |  |  |
PRODUCT |  |  |  |  |  |  |  |  |  |  |
Automobile |  |  |  |  |  |  |  |  |  |  |
Combined ratio | 83.5 |  | 88.3 |  | 81.3 |  | 82.5 |  | 89.8 |  |  |  |  |  |  |
Adjustment to reconcile combined ratio to underlying combined ratio: |  |  |  |  |  |  |  |  |  |  |
Current accident year catastrophes | (0.5) |  | (0.5) |  | (1.5) |  | (1.8) |  | (0.3) |  |  |  |  |  |  |
Prior accident year development | 3.3 |  | 1.9 |  | 5.2 |  | 5.6 |  | 1.5 |  |  |  |  |  |  |
Underlying combined ratio | 86.3 |  | 89.6 |  | 84.9 |  | 86.3 |  | 90.9 |  |  |  |  |  |  |
Homeowners |  |  |  |  |  |  |  |  |  |  |
Combined ratio | 86.8 |  | 60.3 |  | 122.9 |  | (45.8) |  | 79.2 |  |  |  |  |  |  |
Adjustment to reconcile combined ratio to underlying combined ratio: |  |  |  |  |  |  |  |  |  |  |
Current accident year catastrophes | (15.9) |  | (4.5) |  | (47.7) |  | (20.1) |  | (7.0) |  |  |  |  |  |  |
Prior accident year development | 6.3 |  | 14.0 |  | (1.2) |  | 136.0 |  | 4.0 |  |  |  |  |  |  |
Underlying combined ratio | 77.2 |  | 69.9 |  | 74.0 |  | 70.1 |  | 76.2 |  |  |  |  |  |  |

17

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PERSONAL LINES
SUPPLEMENTAL DATA

| THREE MONTHS ENDED |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
DISTRIBUTION |  |  |  |  |  |  |  |  |  |  |
WRITTEN PREMIUMS |  |  |  |  |  |  |  |  |  |  |
AARP Direct | $ | 612 |  | $ | 564 |  | $ | 666 |  | $ | 627 |  | $ | 627 |  |  |  |  |  |  |
AARP Agency | 51 |  | 53 |  | 53 |  | 50 |  | 57 |  |  |  |  |  |  |
Other Agency | 45 |  | 51 |  | 54 |  | 54 |  | 52 |  |  |  |  |  |  |
Other | 7 |  | 5 |  | 8 |  | 7 |  | 8 |  |  |  |  |  |  |
Total | $ | 715 |  | $ | 673 |  | $ | 781 |  | $ | 738 |  | $ | 744 |  |  |  |  |  |  |
EARNED PREMIUMS |  |  |  |  |  |  |  |  |  |  |
AARP Direct | $ | 623 |  | $ | 644 |  | $ | 657 |  | $ | 581 |  | $ | 647 |  |  |  |  |  |  |
AARP Agency | 53 |  | 56 |  | 56 |  | 52 |  | 60 |  |  |  |  |  |  |
Other Agency | 51 |  | 54 |  | 57 |  | 54 |  | 60 |  |  |  |  |  |  |
Other | 7 |  | 7 |  | 9 |  | 7 |  | 7 |  |  |  |  |  |  |
Total | $ | 734 |  | $ | 761 |  | $ | 779 |  | $ | 694 |  | $ | 774 |  |  |  |  |  |  |
PRODUCT LINE |  |  |  |  |  |  |  |  |  |  |
WRITTEN PREMIUMS |  |  |  |  |  |  |  |  |  |  |
Automobile | $ | 508 |  | $ | 459 |  | $ | 529 |  | $ | 481 |  | $ | 534 |  |  |  |  |  |  |
Homeowners | 207 |  | 214 |  | 252 |  | 257 |  | 210 |  |  |  |  |  |  |
Total | $ | 715 |  | $ | 673 |  | $ | 781 |  | $ | 738 |  | $ | 744 |  |  |  |  |  |  |
EARNED PREMIUMS |  |  |  |  |  |  |  |  |  |  |
Automobile | $ | 507 |  | $ | 525 |  | $ | 541 |  | $ | 456 |  | $ | 536 |  |  |  |  |  |  |
Homeowners | 227 |  | 236 |  | 238 |  | 238 |  | 238 |  |  |  |  |  |  |
Total | $ | 734 |  | $ | 761 |  | $ | 779 |  | $ | 694 |  | $ | 774 |  |  |  |  |  |  |

18

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PERSONAL LINES
SUPPLEMENTAL DATA (CONTINUED)

| THREE MONTHS ENDED |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR) |  |  |  |  |  |
Net New Business Premium |  |  |  |  |  |  |  |  |  |  |
Automobile | $ | 53 |  | $ | 45 |  | $ | 55 |  | $ | 65 |  | $ | 58 |  |  |  |  |  |  |
Homeowners | $ | 13 |  | $ | 12 |  | $ | 16 |  | $ | 18 |  | $ | 17 |  |  |  |  |  |  |
Renewal Written Price Increases |  |  |  |  |  |  |  |  |  |  |
Automobile | 1.9 | % | 1.8 | % | 2.1 | % | 2.5 | % | 3.1 | % |  |  |  |  |  |
Homeowners | 9.4 | % | 8.7 | % | 7.1 | % | 5.1 | % | 4.7 | % |  |  |  |  |  |
Policy Count Retention |  |  |  |  |  |  |  |  |  |  |
Automobile | 85 | % | 84 | % | 84 | % | 90 | % | 86 | % |  |  |  |  |  |
Homeowners | 85 | % | 84 | % | 84 | % | 89 | % | 86 | % |  |  |  |  |  |
Policies in Force (in thousands) |  |  |  |  |  |  |  |  |  |  |
Automobile | 1,357 |  | 1,369 |  | 1,392 |  | 1,416 |  | 1,410 |  |  |  |  |  |  |
Homeowners | 815 |  | 826 |  | 846 |  | 865 |  | 868 |  |  |  |  |  |  |

19

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
P&C OTHER OPERATIONS
INCOME STATEMENTS

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

[1]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.
20

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
GROUP BENEFITS
INCOME STATEMENTS

| THREE MONTHS ENDED |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
Earned premiums | $ | 1,374 |  | $ | 1,318 |  | $ | 1,317 |  | $ | 1,378 |  | $ | 1,348 |  |  |  |  |  |  |
Fee income | 44 |  | 43 |  | 44 |  | 45 |  | 43 |  |  |  |  |  |  |
Net investment income | 127 |  | 124 |  | 117 |  | 92 |  | 115 |  |  |  |  |  |  |
Net realized capital gains (losses) | 19 |  | 18 |  | 9 |  | 3 |  | (8) |  |  |  |  |  |  |
Total revenues | 1,564 |  | 1,503 |  | 1,487 |  | 1,518 |  | 1,498 |  |  |  |  |  |  |
Benefits, losses and loss adjustment expenses [1] | 1,196 |  | 1,092 |  | 1,005 |  | 1,033 |  | 1,007 |  |  |  |  |  |  |
Amortization of DAC | 11 |  | 11 |  | 13 |  | 13 |  | 13 |  |  |  |  |  |  |
Insurance operating costs and other expenses [2] | 339 |  | 317 |  | 312 |  | 340 |  | 339 |  |  |  |  |  |  |
Amortization of other intangible assets | 10 |  | 10 |  | 10 |  | 9 |  | 11 |  |  |  |  |  |  |
Total benefits, losses and expenses | 1,556 |  | 1,430 |  | 1,340 |  | 1,395 |  | 1,370 |  |  |  |  |  |  |
Income before income taxes | 8 |  | 73 |  | 147 |  | 123 |  | 128 |  |  |  |  |  |  |
Income tax expense (benefit) | (1) |  | 14 |  | 28 |  | 22 |  | 24 |  |  |  |  |  |  |
Net income | 9 |  | 59 |  | 119 |  | 101 |  | 104 |  |  |  |  |  |  |
Adjustments to reconcile net income to core earnings: |  |  |  |  |  |  |  |  |  |  |
Net realized capital losses (gains), excluded from core earnings, before tax | (18) |  | (17) |  | (9) |  | (2) |  | 8 |  |  |  |  |  |  |
Integration and transaction costs associated with acquired business, before tax | 2 |  | 3 |  | 5 |  | 5 |  | 5 |  |  |  |  |  |  |
Income tax expense (benefit) [3] | 4 |  | 4 |  | 1 |  | (2) |  | (2) |  |  |  |  |  |  |
Core earnings (losses) | $ | (3) |  | $ | 49 |  | $ | 116 |  | $ | 102 |  | $ | 115 |  |  |  |  |  |  |
Margin |  |  |  |  |  |  |  |  |  |  |
Net income margin | 0.6 | % | 3.9 | % | 8.0 | % | 6.7 | % | 6.9 | % |  |  |  |  |  |
Core earnings margin* | (0.2 | %) | 3.3 | % | 7.9 | % | 6.9 | % | 7.8 | % |  |  |  |  |  |
ROE |  |  |  |  |  |  |  |  |  |  |
Net income available to common stockholders [4] | 6.4 | % | 8.3 | % | 11.0 | % | 12.0 | % | 13.4 | % |  |  |  |  |  |
Adjustments to reconcile net income available to common stockholders to core earnings: |  |  |  |  |  |  |  |  |  |  |
Net realized capital losses (gains), excluded from core earnings, before tax | (1.2 | %) | (0.5 | %) | (0.3 | %) | (0.4 | %) | (0.6 | %) |  |  |  |  |  |
Integration and transaction costs associated with acquired business, before tax | 0.4 | % | 0.4 | % | 0.6 | % | 0.7 | % | 0.9 | % |  |  |  |  |  |
Income tax expense (benefit) [3] | 0.2 | % | — | % | (0.1 | %) | (0.1 | %) | (0.1 | %) |  |  |  |  |  |
Impact of AOCI, excluded from core earnings ROE | 0.5 | % | 1.4 | % | 1.8 | % | 1.5 | % | 0.6 | % |  |  |  |  |  |
Core earnings [4] | 6.3 | % | 9.6 | % | 13.0 | % | 13.7 | % | 14.2 | % |  |  |  |  |  |

[1]The three months ended March 31, 2021 and 2020 included $185 and $0, respectively, of incurred losses from excess mortality, primarily caused by direct and indirect impacts of COVID-19. The three months ended March 31, 2021 and 2020 also included net losses of $13 and $16, respectively on COVID-19 related losses from short-term disability claims.
[2]The three months ended March 31, 2021 and 2020 included $4 and $1, respectively, of before tax decreases in the ACL on uncollectible premiums receivable.
[3]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.
[4]Net income ROE and core earnings ROE are calculated by allocating a portion of debt, interest expense, preferred stock and preferred stock dividends accounted for within Corporate to Group Benefits.
21

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
GROUP BENEFITS
SUPPLEMENTAL DATA

| THREE MONTHS ENDED |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
PREMIUMS |  |  |  |  |  |  |  |  |  |  |
Fully insured ongoing premiums |  |  |  |  |  |  |  |  |  |  |
Group disability | $ | 693 |  | $ | 646 |  | $ | 652 |  | $ | 672 |  | $ | 660 |  |  |  |  |  |  |
Group life | 602 |  | 601 |  | 594 |  | 605 |  | 605 |  |  |  |  |  |  |
Other [1] | 77 |  | 70 |  | 70 |  | 72 |  | 58 |  |  |  |  |  |  |
Total fully insured ongoing premiums | 1,372 |  | 1,317 |  | 1,316 |  | 1,349 |  | 1,323 |  |  |  |  |  |  |
Total buyouts [2] | 2 |  | 1 |  | 1 |  | 29 |  | 25 |  |  |  |  |  |  |
Total premiums | $ | 1,374 |  | $ | 1,318 |  | $ | 1,317 |  | $ | 1,378 |  | $ | 1,348 |  |  |  |  |  |  |
SALES (GROSS ANNUALIZED NEW PREMIUMS) |  |  |  |  |  |  |  |  |  |  |
Fully insured ongoing sales |  |  |  |  |  |  |  |  |  |  |
Group disability | $ | 321 |  | $ | 28 |  | $ | 55 |  | $ | 65 |  | $ | 213 |  |  |  |  |  |  |
Group life | 151 |  | 15 |  | 69 |  | 73 |  | 136 |  |  |  |  |  |  |
Other [1] | 40 |  | 6 |  | 10 |  | 11 |  | 36 |  |  |  |  |  |  |
Total fully insured ongoing sales | 512 |  | 49 |  | 134 |  | 149 |  | 385 |  |  |  |  |  |  |
Total buyouts [2] | 2 |  | 1 |  | 1 |  | 29 |  | 25 |  |  |  |  |  |  |
Total sales | $ | 514 |  | $ | 50 |  | $ | 135 |  | $ | 178 |  | $ | 410 |  |  |  |  |  |  |
RATIOS, EXCLUDING BUYOUTS |  |  |  |  |  |  |  |  |  |  |
Group disability loss ratio [3] | 68.4 | % | 65.1 | % | 65.3 | % | 62.6 | % | 71.5 | % |  |  |  |  |  |
Group life loss ratio [4] | 108.3 | % | 102.0 | % | 87.5 | % | 85.9 | % | 74.6 | % |  |  |  |  |  |
Total loss ratio | 84.3 | % | 80.2 | % | 73.8 | % | 72.0 | % | 71.9 | % |  |  |  |  |  |
Expense ratio [5] | 25.3 | % | 24.6 | % | 24.3 | % | 25.6 | % | 26.2 | % |  |  |  |  |  |

[1]Includes other group coverages such as retiree health insurance, critical illness, accident, hospital indemnity and participant accident coverages.
[2]Takeover of open claim liabilities and other non-recurring premium amounts. The three months ended March 31, 2020 included buyout premiums primarily from one large account.
[3]The group disability loss ratio decreased 3.1 points from first quarter 2020 to first quarter 2021, primarily due to more favorable prior incurral year development driven by higher claim recoveries and continued improving claim incidence. The three months period ending March 31, 2021 includes $13 of losses on short-term disability and New York Paid Family Leave claims related to COVID-19 as compared to $16 for the three months ended March 31, 2020.
[4]The three months ended March 31, 2021 and 2020 included 30.7 points and 0.0 points, respectively, of incurred losses from excess mortality, primarily caused by direct and indirect impacts of COVID-19.
[5]Integration and transaction costs related to the acquisition of Aetna's U.S. group life and disability business are not included in the expense ratio.
22

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
HARTFORD FUNDS
INCOME STATEMENTS

| THREE MONTHS ENDED |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
Investment management fees | $ | 208 |  | $ | 194 |  | $ | 182 |  | $ | 165 |  | $ | 178 |  |  |  |  |  |  |
Shareholder servicing fees | 24 |  | 22 |  | 22 |  | 20 |  | 22 |  |  |  |  |  |  |
Other revenue | 51 |  | 50 |  | 47 |  | 43 |  | 48 |  |  |  |  |  |  |
Net realized capital gains (losses) | 2 |  | 6 |  | 5 |  | 8 |  | (11) |  |  |  |  |  |  |
Total revenues | 285 |  | 272 |  | 256 |  | 236 |  | 237 |  |  |  |  |  |  |
Sub-advisory expense | 75 |  | 70 |  | 66 |  | 60 |  | 64 |  |  |  |  |  |  |
Employee compensation and benefits | 37 |  | 30 |  | 29 |  | 28 |  | 32 |  |  |  |  |  |  |
Distribution and service | 90 |  | 84 |  | 82 |  | 75 |  | 80 |  |  |  |  |  |  |
General, administrative and other [1] | 25 |  | 23 |  | 24 |  | 23 |  | 17 |  |  |  |  |  |  |
Total expenses | 227 |  | 207 |  | 201 |  | 186 |  | 193 |  |  |  |  |  |  |
Income before income taxes | 58 |  | 65 |  | 55 |  | 50 |  | 44 |  |  |  |  |  |  |
Income tax expense | 11 |  | 14 |  | 11 |  | 11 |  | 8 |  |  |  |  |  |  |
Net income | $ | 47 |  | $ | 51 |  | $ | 44 |  | $ | 39 |  | $ | 36 |  |  |  |  |  |  |
Adjustments to reconcile net income to core earnings: |  |  |  |  |  |  |  |  |  |  |
Net realized capital losses (gains), excluded from core earnings, before tax | (2) |  | (6) |  | (5) |  | (8) |  | 11 |  |  |  |  |  |  |
Income tax expense (benefit) [2] | — |  | 1 |  | 1 |  | 2 |  | (3) |  |  |  |  |  |  |
Core earnings | $ | 45 |  | $ | 46 |  | $ | 40 |  | $ | 33 |  | $ | 44 |  |  |  |  |  |  |
Daily average Hartford Funds AUM | $ | 143,164 |  | $ | 130,485 |  | $ | 122,528 |  | $ | 110,864 |  | $ | 119,632 |  |  |  |  |  |  |
Return on assets (bps, net of tax) [3] |  |  |  |  |  |  |  |  |  |  |
Net income | 13.1 |  | 15.6 |  | 14.4 |  | 14.1 |  | 12.0 |  |  |  |  |  |  |
Core earnings* | 12.6 |  | 14.1 |  | 13.1 |  | 11.9 |  | 14.7 |  |  |  |  |  |  |
ROE |  |  |  |  |  |  |  |  |  |  |
Net income available to common stockholders [4] | 52.9 | % | 49.9 | % | 48.2 | % | 48.2 | % | 50.2 | % |  |  |  |  |  |
Adjustments to reconcile net income available to common stockholders to core earnings: |  |  |  |  |  |  |  |  |  |  |
Net realized capital losses (gains) excluded from core earnings, before tax | (6.3 | %) | (2.4 | %) | (0.9 | %) | 0.3 | % | 3.0 | % |  |  |  |  |  |
Income tax expense (benefit) [2] | 1.2 | % | 0.3 | % | — | % | (0.3 | %) | (1.0 | %) |  |  |  |  |  |
Impact of AOCI, excluded from core earnings ROE | (0.2 | %) | 0.3 | % | 0.3 | % | 0.1 | % | (0.7 | %) |  |  |  |  |  |
Core earnings [4] | 47.6 | % | 48.1 | % | 47.6 | % | 48.3 | % | 51.5 | % |  |  |  |  |  |

[1]The three months ended March 31, 2020 included a $12 reduction in contingent consideration payable related to the 2016 acquisition of Lattice Strategies.
[2]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.
[3]Represents annualized earnings divided by daily average assets under management ("AUM"), as measured in basis points ("bps") which represents one hundredth of one percent.
[4]Net income ROE and core earnings ROE are calculated by allocating a portion of debt, interest expense, preferred stock and preferred stock dividends accounted for within Corporate to Hartford Funds.
23

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
HARTFORD FUNDS
ASSET VALUE ROLLFORWARD
ASSETS UNDER MANAGEMENT BY ASSET CLASS

| THREE MONTHS ENDED |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
Equity Funds |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 82,123 |  | $ | 70,649 |  | $ | 66,838 |  | $ | 55,076 |  | $ | 71,629 |  |  |  |  |  |  |
Sales | 6,202 |  | 4,303 |  | 3,545 |  | 5,038 |  | 5,313 |  |  |  |  |  |  |
Redemptions | (5,191) |  | (4,873) |  | (5,102) |  | (5,083) |  | (5,701) |  |  |  |  |  |  |
Net flows | 1,011 |  | (570) |  | (1,557) |  | (45) |  | (388) |  |  |  |  |  |  |
Change in market value and other | 4,322 |  | 12,044 |  | 5,368 |  | 11,807 |  | (16,165) |  |  |  |  |  |  |
Ending balance | $ | 87,456 |  | $ | 82,123 |  | $ | 70,649 |  | $ | 66,838 |  | $ | 55,076 |  |  |  |  |  |  |
Fixed Income Funds |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 17,034 |  | $ | 15,655 |  | $ | 14,771 |  | $ | 14,558 |  | $ | 16,130 |  |  |  |  |  |  |
Sales | 2,258 |  | 2,108 |  | 1,640 |  | 1,667 |  | 1,782 |  |  |  |  |  |  |
Redemptions | (1,486) |  | (1,142) |  | (1,121) |  | (2,241) |  | (2,632) |  |  |  |  |  |  |
Net flows | 772 |  | 966 |  | 519 |  | (574) |  | (850) |  |  |  |  |  |  |
Change in market value and other | (101) |  | 413 |  | 365 |  | 787 |  | (722) |  |  |  |  |  |  |
Ending balance | $ | 17,705 |  | $ | 17,034 |  | $ | 15,655 |  | $ | 14,771 |  | $ | 14,558 |  |  |  |  |  |  |
Multi-Strategy Investments Funds [1] |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 22,645 |  | $ | 21,116 |  | $ | 20,526 |  | $ | 18,407 |  | $ | 21,332 |  |  |  |  |  |  |
Sales | 738 |  | 688 |  | 693 |  | 801 |  | 1,026 |  |  |  |  |  |  |
Redemptions | (1,751) |  | (798) |  | (841) |  | (733) |  | (1,145) |  |  |  |  |  |  |
Net flows | (1,013) |  | (110) |  | (148) |  | 68 |  | (119) |  |  |  |  |  |  |
Change in market value and other | 538 |  | 1,639 |  | 738 |  | 2,051 |  | (2,806) |  |  |  |  |  |  |
Ending balance | $ | 22,170 |  | $ | 22,645 |  | $ | 21,116 |  | $ | 20,526 |  | $ | 18,407 |  |  |  |  |  |  |
Exchange-traded Products ("ETP") AUM |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 2,825 |  | $ | 2,621 |  | $ | 2,586 |  | $ | 2,574 |  | $ | 3,442 |  |  |  |  |  |  |
Net flows | 4 |  | (5) |  | (80) |  | (124) |  | (67) |  |  |  |  |  |  |
Change in market value and other | 94 |  | 209 |  | 115 |  | 136 |  | (801) |  |  |  |  |  |  |
Ending balance | $ | 2,923 |  | $ | 2,825 |  | $ | 2,621 |  | $ | 2,586 |  | $ | 2,574 |  |  |  |  |  |  |
Mutual Fund and ETP AUM |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 124,627 |  | $ | 110,041 |  | $ | 104,721 |  | $ | 90,615 |  | $ | 112,533 |  |  |  |  |  |  |
Sales - mutual fund | 9,198 |  | 7,099 |  | 5,878 |  | 7,506 |  | 8,121 |  |  |  |  |  |  |
Redemptions - mutual fund | (8,428) |  | (6,813) |  | (7,064) |  | (8,057) |  | (9,478) |  |  |  |  |  |  |
Net flows - ETP | 4 |  | (5) |  | (80) |  | (124) |  | (67) |  |  |  |  |  |  |
Net flows - mutual fund and ETP | 774 |  | 281 |  | (1,266) |  | (675) |  | (1,424) |  |  |  |  |  |  |
Change in market value and other | 4,853 |  | 14,305 |  | 6,586 |  | 14,781 |  | (20,494) |  |  |  |  |  |  |
Ending balance | 130,254 |  | 124,627 |  | 110,041 |  | 104,721 |  | 90,615 |  |  |  |  |  |  |
Talcott Resolution life and annuity separate account AUM [2] | 14,944 |  | 14,809 |  | 13,669 |  | 13,123 |  | 11,538 |  |  |  |  |  |  |
Hartford Funds AUM | $ | 145,198 |  | $ | 139,436 |  | $ | 123,710 |  | $ | 117,844 |  | $ | 102,153 |  |  |  |  |  |  |

[1]Includes balanced, allocation, and alternative investment products.
[2]Represents AUM of the life and annuity business sold in May 2018 that is still managed by the Company's Hartford Funds segment.
24

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CORPORATE
INCOME STATEMENTS

| THREE MONTHS ENDED |  |  |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
Fee income | $ | 12 |  | $ | 11 |  | $ | 13 |  | $ | 12 |  | $ | 13 |  |  |  |  |  |  |
Other revenue (loss) [1] | (8) |  | (1) |  | (21) |  | 73 |  | 2 |  |  |  |  |  |  |
Net investment income | 3 |  | 6 |  | 3 |  | 4 |  | 9 |  |  |  |  |  |  |
Net realized capital gains (losses) | 6 |  | 24 |  | 13 |  | 24 |  | (39) |  |  |  |  |  |  |
Total revenues | 13 |  | 40 |  | 8 |  | 113 |  | (15) |  |  |  |  |  |  |
Benefits, losses and loss adjustment expenses [2] | 1 |  | 2 |  | 1 |  | 6 |  | 6 |  |  |  |  |  |  |
Insurance operating costs and other expenses | 13 |  | 17 |  | 9 |  | 29 |  | 21 |  |  |  |  |  |  |
Interest expense | 57 |  | 57 |  | 58 |  | 57 |  | 64 |  |  |  |  |  |  |
Restructuring and other costs | 11 |  | 17 |  | 87 |  | — |  | — |  |  |  |  |  |  |
Total expenses | 82 |  | 93 |  | 155 |  | 92 |  | 91 |  |  |  |  |  |  |
Income (loss) before income taxes | (69) |  | (53) |  | (147) |  | 21 |  | (106) |  |  |  |  |  |  |
Income tax expense (benefit) | (11) |  | (12) |  | (39) |  | 3 |  | (15) |  |  |  |  |  |  |
Net income (loss) | (58) |  | (41) |  | (108) |  | 18 |  | (91) |  |  |  |  |  |  |
Preferred stock dividends | 5 |  | 5 |  | 6 |  | 5 |  | 5 |  |  |  |  |  |  |
Net income (loss) available to common stockholders | (63) |  | (46) |  | (114) |  | 13 |  | (96) |  |  |  |  |  |  |
Adjustments to reconcile net income available to common stockholders to core earnings: |  |  |  |  |  |  |  |  |  |  |
Net realized capital losses (gains), excluded from core earnings, before tax | (6) |  | (24) |  | (12) |  | (26) |  | 40 |  |  |  |  |  |  |
Restructuring and other costs, before tax | 11 |  | 17 |  | 87 |  | — |  | — |  |  |  |  |  |  |
Income tax expense (benefit) [3] | (2) |  | 2 |  | (18) |  | 7 |  | (8) |  |  |  |  |  |  |
Core losses | $ | (60) |  | $ | (51) |  | $ | (57) |  | $ | (6) |  | $ | (64) |  |  |  |  |  |  |

[1]The three months ended March 31, 2021 and 2020 include $(8) and $(4), respectively, of loss before tax from the Company's retained 9.7% equity interest in the limited partnership that acquired the life and annuity business sold in May 2018.
[2]Includes benefits, losses and loss adjustment expenses for run-off structured settlement and terminal funding agreement liabilities.
[3]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.
25

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTMENT INCOME BEFORE TAX
CONSOLIDATED

| THREE MONTHS ENDED |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
Net Investment Income (Loss) |  |  |  |  |  |  |  |  |  |  |
Fixed maturities [1] |  |  |  |  |  |  |  |  |  |  |
Taxable | $ | 279 |  | $ | 280 |  | $ | 287 |  | $ | 280 |  | $ | 298 |  |  |  |  |  |  |
Tax-exempt | 70 |  | 69 |  | 72 |  | 77 |  | 79 |  |  |  |  |  |  |
Total fixed maturities | 349 |  | 349 |  | 359 |  | 357 |  | 377 |  |  |  |  |  |  |
Equity securities | 10 |  | 12 |  | 9 |  | 6 |  | 12 |  |  |  |  |  |  |
Mortgage loans | 43 |  | 44 |  | 44 |  | 42 |  | 42 |  |  |  |  |  |  |
Limited partnerships and other alternative investments [2] | 112 |  | 152 |  | 83 |  | (71) |  | 58 |  |  |  |  |  |  |
Other [3] | 14 |  | 19 |  | 14 |  | 21 |  | (12) |  |  |  |  |  |  |
Subtotal | 528 |  | 576 |  | 509 |  | 355 |  | 477 |  |  |  |  |  |  |
Investment expense | (19) |  | (20) |  | (17) |  | (16) |  | (18) |  |  |  |  |  |  |
Total net investment income | $ | 509 |  | $ | 556 |  | $ | 492 |  | $ | 339 |  | $ | 459 |  |  |  |  |  |  |
Annualized investment yield, before tax [4] | 3.8 | % | 4.3 | % | 3.8 | % | 2.7 | % | 3.7 | % |  |  |  |  |  |
Annualized limited partnerships and other alternative investment yield, before tax [4] | 21.1 | % | 32.3 | % | 18.3 | % | (15.3 | %) | 13.2 | % |  |  |  |  |  |
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]* | 3.1 | % | 3.2 | % | 3.3 | % | 3.4 | % | 3.3 | % |  |  |  |  |  |
Annualized investment yield, net of tax [4] | 3.1 | % | 3.5 | % | 3.2 | % | 2.2 | % | 3.0 | % |  |  |  |  |  |
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]* | 2.6 | % | 2.6 | % | 2.7 | % | 2.8 | % | 2.7 | % |  |  |  |  |  |
Average reinvestment rate [5] | 2.3 | % | 2.5 | % | 2.1 | % | 2.7 | % | 2.9 | % |  |  |  |  |  |
Average sales/maturities yield [6] | 2.9 | % | 3.2 | % | 3.5 | % | 3.6 | % | 3.3 | % |  |  |  |  |  |
Portfolio duration (in years) [7] | 4.8 |  | 4.9 |  | 5.0 |  | 5.0 |  | 4.8 |  |  |  |  |  |  |

[1]Includes income on short-term investments.
[2]Other alternative investments include an insurer-owned life insurance policy, which is primarily invested in fixed income, private equity, and hedge funds.
[3]Includes changes in fair value of certain equity fund investments and income from derivatives that qualify for hedge accounting and are used to hedge fixed maturities.
[4]Represents annualized net investment income divided by the monthly average invested assets at amortized cost as applicable, excluding repurchase agreement and securities lending collateral, if any, and derivatives book value.
[5]Represents the annualized yield on fixed maturities and mortgage loans that were purchased during the respective period. Excludes U.S. Treasury securities and repurchase agreement and securities lending collateral, if any.
[6]Represents the annualized yield on fixed maturities and mortgage loans that were sold, matured, or redeemed, including calls and pay-downs, during the respective period. Excludes U.S. Treasury securities, cash equivalent securities, and repurchase agreement and securities lending collateral, if any.
[7]Excludes certain short-term investments.
26

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTMENT INCOME BEFORE TAX
PROPERTY & CASUALTY

| THREE MONTHS ENDED |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
Net Investment Income (Loss) |  |  |  |  |  |  |  |  |  |  |
Fixed maturities [1] |  |  |  |  |  |  |  |  |  |  |
Taxable | $ | 207 |  | $ | 207 |  | $ | 210 |  | $ | 206 |  | $ | 216 |  |  |  |  |  |  |
Tax-exempt | 52 |  | 52 |  | 53 |  | 57 |  | 58 |  |  |  |  |  |  |
Total fixed maturities | 259 |  | 259 |  | 263 |  | 263 |  | 274 |  |  |  |  |  |  |
Equity securities | 7 |  | 7 |  | 6 |  | 3 |  | 10 |  |  |  |  |  |  |
Mortgage loans | 30 |  | 30 |  | 31 |  | 30 |  | 29 |  |  |  |  |  |  |
Limited partnerships and other alternative investments [2] | 84 |  | 128 |  | 72 |  | (62) |  | 48 |  |  |  |  |  |  |
Other [3] | 12 |  | 15 |  | 12 |  | 19 |  | (14) |  |  |  |  |  |  |
Subtotal | 392 |  | 439 |  | 384 |  | 253 |  | 347 |  |  |  |  |  |  |
Investment expense | (14) |  | (14) |  | (13) |  | (11) |  | (13) |  |  |  |  |  |  |
Total net investment income | $ | 378 |  | $ | 425 |  | $ | 371 |  | $ | 242 |  | $ | 334 |  |  |  |  |  |  |
Annualized investment yield, before tax [4] | 3.9 | % | 4.4 | % | 3.9 | % | 2.6 | % | 3.6 | % |  |  |  |  |  |
Annualized limited partnerships and other alternative investment yield, before tax [4] | 19.2 | % | 32.9 | % | 19.2 | % | (15.9 | %) | 13.1 | % |  |  |  |  |  |
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4] | 3.2 | % | 3.2 | % | 3.3 | % | 3.5 | % | 3.2 | % |  |  |  |  |  |
Annualized investment yield, net of tax [4] | 3.2 | % | 3.6 | % | 3.3 | % | 2.2 | % | 3.0 | % |  |  |  |  |  |
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4] | 2.6 | % | 2.6 | % | 2.7 | % | 2.9 | % | 2.7 | % |  |  |  |  |  |
Average reinvestment rate [5] | 2.3 | % | 2.6 | % | 2.0 | % | 2.7 | % | 2.9 | % |  |  |  |  |  |
Average sales/maturities yield [6] | 2.8 | % | 3.0 | % | 3.4 | % | 3.5 | % | 3.2 | % |  |  |  |  |  |
Portfolio duration (in years) [7] | 4.7 |  | 4.9 |  | 5.0 |  | 4.9 |  | 4.7 |  |  |  |  |  |  |

Footnotes [1] through [7] are explained on page 26.
27

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTMENT INCOME BEFORE TAX
GROUP BENEFITS

| THREE MONTHS ENDED |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
Net Investment Income (Loss) |  |  |  |  |  |  |  |  |  |  |
Fixed maturities [1] |  |  |  |  |  |  |  |  |  |  |
Taxable | $ | 71 |  | $ | 72 |  | $ | 76 |  | $ | 73 |  | $ | 76 |  |  |  |  |  |  |
Tax-exempt | 16 |  | 16 |  | 17 |  | 18 |  | 19 |  |  |  |  |  |  |
Total fixed maturities | 87 |  | 88 |  | 93 |  | 91 |  | 95 |  |  |  |  |  |  |
Equity securities | 2 |  | 1 |  | 2 |  | 1 |  | 1 |  |  |  |  |  |  |
Mortgage loans | 13 |  | 14 |  | 13 |  | 12 |  | 13 |  |  |  |  |  |  |
Limited partnerships and other alternative investments [2] | 28 |  | 24 |  | 11 |  | (9) |  | 10 |  |  |  |  |  |  |
Other [3] | 2 |  | 3 |  | 2 |  | 2 |  | 1 |  |  |  |  |  |  |
Subtotal | 132 |  | 130 |  | 121 |  | 97 |  | 120 |  |  |  |  |  |  |
Investment expense | (5) |  | (6) |  | (4) |  | (5) |  | (5) |  |  |  |  |  |  |
Total net investment income | $ | 127 |  | $ | 124 |  | $ | 117 |  | $ | 92 |  | $ | 115 |  |  |  |  |  |  |
Annualized investment yield, before tax [4] | 4.4 | % | 4.3 | % | 4.1 | % | 3.2 | % | 4.0 | % |  |  |  |  |  |
Annualized limited partnerships and other alternative investment yield, before tax [4] | 29.8 | % | 29.4 | % | 13.8 | % | (12.4 | %) | 14.0 | % |  |  |  |  |  |
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4] | 3.5 | % | 3.5 | % | 3.8 | % | 3.6 | % | 3.7 | % |  |  |  |  |  |
Annualized investment yield, net of tax [4] | 3.5 | % | 3.5 | % | 3.3 | % | 2.6 | % | 3.3 | % |  |  |  |  |  |
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4] | 2.9 | % | 2.9 | % | 3.1 | % | 3.0 | % | 3.0 | % |  |  |  |  |  |
Average reinvestment rate [5] | 2.8 | % | 2.7 | % | 2.4 | % | 3.3 | % | 3.2 | % |  |  |  |  |  |
Average sales/maturities yield [6] | 3.3 | % | 4.0 | % | 3.8 | % | 3.9 | % | 4.0 | % |  |  |  |  |  |
Portfolio duration (in years) [7] | 5.8 |  | 6.0 |  | 6.2 |  | 6.1 |  | 5.9 |  |  |  |  |  |  |

Footnotes [1] through [7] are explained on page 26.
28

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NET INVESTMENT INCOME
CONSOLIDATED

| THREE MONTHS ENDED |  |  |  |
Net Investment Income by Segment | Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |  |  |  |
Net Investment Income |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial Lines | $ | 327 |  | $ | 363 |  | $ | 316 |  | $ | 204 |  | $ | 277 |  |  |  |  |  |  |  |  |  |
Personal Lines | 35 |  | 47 |  | 41 |  | 28 |  | 41 |  |  |  |  |  |  |  |  |  |
P&C Other Operations | 16 |  | 15 |  | 14 |  | 10 |  | 16 |  |  |  |  |  |  |  |  |  |
Total Property & Casualty | 378 |  | 425 |  | 371 |  | 242 |  | 334 |  |  |  |  |  |  |  |  |  |
Group Benefits | 127 |  | 124 |  | 117 |  | 92 |  | 115 |  |  |  |  |  |  |  |  |  |
Hartford Funds | 1 |  | 1 |  | 1 |  | 1 |  | 1 |  |  |  |  |  |  |  |  |  |
Corporate | 3 |  | 6 |  | 3 |  | 4 |  | 9 |  |  |  |  |  |  |  |  |  |
Total net investment income by segment | $ | 509 |  | $ | 556 |  | $ | 492 |  | $ | 339 |  | $ | 459 |  |  |  |  |  |  |  |  |  |
| THREE MONTHS ENDED |  |  |  |  |  |
Net Investment Income (Loss) From Limited Partnerships and Other Alternative Investments | Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |  |  |  |
Total Property & Casualty | $ | 84 |  | $ | 128 |  | $ | 72 |  | $ | (62) |  | $ | 48 |  |  |  |  |  |  |  |  |  |
Group Benefits | 28 |  | 24 |  | 11 |  | (9) |  | 10 |  |  |  |  |  |  |  |  |  |
Total net investment income (loss) from limited partnerships and other alternative investments [1] | $ | 112 |  | $ | 152 |  | $ | 83 |  | $ | (71) |  | $ | 58 |  |  |  |  |  |  |  |  |  |

[1]Amounts are included above in total net investment income by segment.
29

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMPONENTS OF NET REALIZED CAPITAL GAINS (LOSSES)
CONSOLIDATED

| THREE MONTHS ENDED |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
Net Realized Capital Gains (Losses) |  |  |  |  |  |  |  |  |  |  |
Gross gains on sales | $ | 31 |  | $ | 54 |  | $ | 27 |  | $ | 96 |  | $ | 78 |  |  |  |  |  |  |
Gross losses on sales | (31) |  | (8) |  | (12) |  | (22) |  | (8) |  |  |  |  |  |  |
Equity securities [1] | 43 |  | 55 |  | 42 |  | 75 |  | (386) |  |  |  |  |  |  |
Net credit losses on fixed maturities, AFS | 4 |  | 5 |  | (1) |  | (20) |  | (12) |  |  |  |  |  |  |
Change in ACL on mortgage loans | 4 |  | — |  | 5 |  | (22) |  | (2) |  |  |  |  |  |  |
Intent-to-sell impairments | — |  | — |  | — |  | — |  | (5) |  |  |  |  |  |  |
Other net gains (losses) [2] | 29 |  | (4) |  | (55) |  | 2 |  | 104 |  |  |  |  |  |  |
Total net realized capital gains (losses) | 80 |  | 102 |  | 6 |  | 109 |  | (231) |  |  |  |  |  |  |
Net realized capital gains, included in core earnings, before tax | (3) |  | (1) |  | — |  | (2) |  | (1) |  |  |  |  |  |  |
Total net realized capital gains (losses) excluded from core earnings, before tax | 77 |  | 101 |  | 6 |  | 107 |  | (232) |  |  |  |  |  |  |
Income tax benefit (expense) related to net realized capital gains (losses) excluded from core earnings | (15) |  | (21) |  | 5 |  | (21) |  | 48 |  |  |  |  |  |  |
Total net realized capital gains (losses) excluded from core earnings, after tax | $ | 62 |  | $ | 80 |  | $ | 11 |  | $ | 86 |  | $ | (184) |  |  |  |  |  |  |

[1]Includes all changes in fair value and trading gains and losses for equity securities.
[2]Includes changes in value of non-qualifying derivatives, including credit derivatives, interest rate derivatives used to manage duration, and equity derivatives. Also includes periodic net coupon settlements on credit derivatives, which are included in core earnings, as well as transactional foreign currency revaluation.
30

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMPOSITION OF INVESTED ASSETS
CONSOLIDATED

| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020
| Amount [1] | Percent | Amount [1] | Percent | Amount | Percent | Amount | Percent | Amount | Percent
Total investments | $ | 55,727 |  | 100.0 | % | $ | 56,532 |  | 100.0 | % | $ | 54,778 |  | 100.0 | % | $ | 53,028 |  | 100.0 | % | $ | 50,359 |  | 100.0 | %
Asset-backed securities | $ | 1,435 |  | 3.2 | % | $ | 1,564 |  | 3.5 | % | $ | 1,490 |  | 3.4 | % | $ | 1,416 |  | 3.3 | % | $ | 1,348 |  | 3.4 | %
Collateralized loan obligations | 3,049 |  | 7.0 | % | 2,780 |  | 6.2 | % | 2,449 |  | 5.6 | % | 2,187 |  | 5.2 | % | 1,989 |  | 5.0 | %
Commercial mortgage-backed securities | 4,167 |  | 9.5 | % | 4,484 |  | 9.9 | % | 4,444 |  | 10.1 | % | 4,211 |  | 10.0 | % | 4,302 |  | 10.6 | %
Corporate | 19,495 |  | 44.8 | % | 20,273 |  | 45.0 | % | 19,416 |  | 44.1 | % | 18,563 |  | 44.0 | % | 16,798 |  | 41.8 | %
Foreign government/government agencies | 868 |  | 2.0 | % | 919 |  | 2.0 | % | 984 |  | 2.2 | % | 972 |  | 2.3 | % | 1,063 |  | 2.6 | %
Municipal [2] | 9,214 |  | 21.1 | % | 9,503 |  | 21.1 | % | 9,310 |  | 21.1 | % | 9,394 |  | 22.2 | % | 9,497 |  | 23.6 | %
Residential mortgage-backed securities | 4,025 |  | 9.3 | % | 4,107 |  | 9.2 | % | 4,548 |  | 10.3 | % | 3,895 |  | 9.3 | % | 4,086 |  | 10.2 | %
U.S. Treasuries | 1,354 |  | 3.1 | % | 1,405 |  | 3.1 | % | 1,403 |  | 3.2 | % | 1,562 |  | 3.7 | % | 1,122 |  | 2.8 | %
Total fixed maturities, AFS | $ | 43,607 |  | 100.0 | % | $ | 45,035 |  | 100.0 | % | $ | 44,044 |  | 100.0 | % | $ | 42,200 |  | 100.0 | % | $ | 40,205 |  | 100.0 | %
U.S. government/government agencies | $ | 4,837 |  | 11.1 | % | $ | 5,214 |  | 11.6 | % | $ | 5,650 |  | 12.8 | % | $ | 5,204 |  | 12.3 | % | $ | 5,126 |  | 12.8 | %
AAA | 6,759 |  | 15.5 | % | 6,848 |  | 15.2 | % | 6,789 |  | 15.4 | % | 6,471 |  | 15.3 | % | 6,395 |  | 15.9 | %
AA | 8,327 |  | 19.1 | % | 8,453 |  | 18.8 | % | 8,152 |  | 18.5 | % | 8,013 |  | 19.0 | % | 7,755 |  | 19.3 | %
A | 11,109 |  | 25.5 | % | 11,595 |  | 25.7 | % | 11,414 |  | 25.9 | % | 11,289 |  | 26.8 | % | 10,541 |  | 26.2 | %
BBB | 10,359 |  | 23.7 | % | 10,856 |  | 24.1 | % | 10,291 |  | 23.4 | % | 9,590 |  | 22.7 | % | 8,962 |  | 22.3 | %
BB | 1,604 |  | 3.7 | % | 1,507 |  | 3.3 | % | 1,222 |  | 2.8 | % | 1,112 |  | 2.6 | % | 974 |  | 2.4 | %
B | 557 |  | 1.3 | % | 523 |  | 1.2 | % | 480 |  | 1.1 | % | 481 |  | 1.2 | % | 408 |  | 1.0 | %
CCC | 47 |  | 0.1 | % | 31 |  | 0.1 | % | 37 |  | 0.1 | % | 31 |  | 0.1 | % | 35 |  | 0.1 | %
CC & below | 8 |  | — | % | 8 |  | — | % | 9 |  | — | % | 9 |  | — | % | 9 |  | — | %
Total fixed maturities, AFS | $ | 43,607 |  | 100.0 | % | $ | 45,035 |  | 100.0 | % | $ | 44,044 |  | 100.0 | % | $ | 42,200 |  | 100.0 | % | $ | 40,205 |  | 100.0 | %

[1]Amount represents the value at which the assets are presented in the Consolidating Balance Sheets (page 4).
[2]Primarily comprised of $6.8 billion in Property & Casualty, $2.2 billion in Group Benefits, and $0.2 billion in Corporate as of March 31, 2021.
31

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTED ASSET EXPOSURES
MARCH 31, 2021

| Cost or Amortized Cost | Fair Value | Percent of Total Invested Assets
Top Ten Corporate Fixed Maturity, AFS and Equity Exposures by Sector |  |  |
Financial services | $ | 5,150 |  | $ | 5,372 |  | 9.6 | %
Technology and communications | 2,976 |  | 3,187 |  | 5.7 | %
Consumer non-cyclical | 2,877 |  | 3,049 |  | 5.5 | %
Utilities | 1,971 |  | 2,114 |  | 3.8 | %
Capital goods | 1,587 |  | 1,672 |  | 3.0 | %
Energy [1] | 1,523 |  | 1,626 |  | 2.9 | %
Consumer cyclical | 1,530 |  | 1,589 |  | 2.9 | %
Basic industry | 795 |  | 838 |  | 1.5 | %
Transportation | 757 |  | 803 |  | 1.4 | %
Other | 851 |  | 877 |  | 1.6 | %
Total | $ | 20,017 |  | $ | 21,127 |  | 37.9 | %
Top Ten Exposures by Issuer [2] |  |  |
Apple Inc. | $ | 217 |  | $ | 238 |  | 0.4 | %
New York State Dormitory Authority | 200 |  | 208 |  | 0.4 | %
IBM Corporation | 187 |  | 204 |  | 0.4 | %
Government of Canada | 196 |  | 199 |  | 0.4 | %
Bank of America Corporation | 186 |  | 199 |  | 0.4 | %
Citigroup Inc. | 188 |  | 195 |  | 0.4 | %
New York City Municipal Water Finance Authority | 184 |  | 194 |  | 0.3 | %
Comcast Corporation | 170 |  | 193 |  | 0.3 | %
Commonwealth of Massachusetts | 181 |  | 192 |  | 0.3 | %
Morgan Stanley | 170 |  | 184 |  | 0.3 | %
Total | $ | 1,879 |  | $ | 2,006 |  | 3.6 | %

[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.
32

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
APPENDIX
BASIS OF PRESENTATION AND DEFINITIONS
All amounts are in millions, except for per share and ratio information, unless otherwise stated. Amounts presented throughout this document have been rounded for presentation purposes.
The Hartford Financial Services Group, Inc. (the "Company", "we", or "our") currently conducts business principally in five reporting segments: Commercial Lines, Personal Lines, Property & Casualty Other Operations ("P&C Other Operations"), Group Benefits and Hartford Funds, as well as a Corporate category.
Property & Casualty ("P&C") businesses consist of three reporting segments: Commercial Lines, Personal Lines and P&C Other Operations. Commercial Lines provides workers’ compensation, property, automobile, general liability, umbrella, professional liability, bond, marine, livestock and accident and health reinsurance to businesses in the United States ("U.S.") and internationally. Commercial Lines generally consists of products written for small businesses, middle market companies as well as national and multi-national accounts, largely distributed through retail agents and brokers, wholesale agents and global and specialty reinsurance brokers. Small commercial and middle market lines within middle & large commercial are generally referred to as standard commercial lines. Global specialty provides a variety of customized insurance products, including reinsurance. Personal Lines provides automobile, homeowners and personal umbrella coverages to individuals across the U.S., including a special program designed exclusively for members of AARP. P&C Other Operations includes certain property and casualty operations, managed by the Company, that have discontinued writing new business and represent approximately 90% of the Company's asbestos and environmental exposures.
Group Benefits provides group life, accident and disability coverage, group retiree health and voluntary benefits to individual members of employer groups and associations. Group Benefits offers disability underwriting, administration, claims processing and reinsurance to other insurers and self-funded employer plans.
Hartford Funds provides investment management, administration, distribution and related services to investors through investment products in domestic markets. Mutual fund and exchange-traded products are sold primarily through retail, bank trust and registered investment advisor channels.
The Company includes in the Corporate category reserves for run-off structured settlement and terminal funding agreement liabilities, restructuring costs, capital raising activities (including equity financing, debt financing and related interest expense), transaction expenses incurred in connection with an acquisition, purchase accounting adjustments related to goodwill, and other expenses not allocated to the reporting segments. Corporate also includes investment management fees and expenses related to managing third party business, including management of the invested assets of Talcott Resolution Life, Inc. and its subsidiaries ("Talcott Resolution"). Talcott Resolution is the holding company of the life and annuity business that we sold in May 2018. In addition, Corporate includes a 9.7% ownership interest in the legal entity that acquired the life and annuity business sold.
Certain operating and statistical measures for P&C Commercial Lines and for Personal Lines have been incorporated herein to provide supplemental data that indicate current trends in the Company's business. These measures include policies in-force, net new business premium, gross new business premium, policy count retention and renewal written price increases. 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 written price increases for Commercial Lines represent the combined effect of rate changes, amount of insurance and individual risk pricing decisions per unit of exposure since the prior year on policies that renewed. For Personal Lines, renewal written price increases represent the total change in premium per policy since the prior year on those policies that renewed and includes the combined effect of rate changes, amount of insurance and other changes in exposure. For Personal Lines, other changes in exposure include, but are not limited to, the effect of changes in number of drivers, vehicles and incidents, as well as changes in customer policy elections, such as deductibles and limits. Net new business premium represents the amount of premiums charged, after ceded reinsurance, for policies issued to customers who were not insured with the Company in the previous policy term. Net new business premium plus renewal written premium equals total written premium. Gross new business premium represents the amount of premiums charged, before ceded reinsurance, for policies issued to customers who were not insured with the Company in the previous policy term. Gross new business premium plus gross renewal written premium less ceded reinsurance equals total written premium. For global specialty, gross new business premium is used by management, as it is thought to be more indicative of new business growth trends, in part because global specialty includes the Global Re assumed reinsurance book of business.
The Company, along with others in the property and casualty insurance industry, uses underwriting ratios as measures of performance. The loss and loss adjustment expense ratio is the ratio of losses and loss adjustment expenses to earned premiums. The expense ratio is the ratio of underwriting expenses less fee income to earned premiums. Underwriting expenses included in the expense ratio consists of amortization of deferred policy acquisition costs and insurance operating costs and expenses, including certain centralized services and bad debt expense, but excluding integration and transaction costs associated with an acquired business. The policyholder dividend ratio is the ratio of policyholder dividends to earned premiums. The combined ratio is the sum of the loss and loss adjustment expense ratio, the expense ratio and the policyholder dividend ratio. These ratios are relative measurements that describe the related cost of losses, expenses and policyholder dividends for every $100 of earned premiums. A combined ratio below 100 demonstrates underwriting profit; a combined ratio above 100 demonstrates underwriting losses. The current accident year catastrophe ratio (a component of the loss ratio) represents the ratio of catastrophe losses and loss adjustment expenses incurred in the current accident year to earned premiums. The prior accident year loss and loss adjustment expense ratio (a component of the loss ratio) represents the increase (decrease) in the estimated cost of settling catastrophe and non-catastrophe claims incurred in prior accident years as recorded in the current calendar year divided by earned premiums.
A catastrophe is a severe loss, resulting from natural or man-made events, including risks such as fire, earthquake, windstorm, explosion, terrorist attack, civil unrest and similar events. Each catastrophe has unique characteristics and the events are unpredictable as to timing or loss amount. Catastrophe losses are not included in either earnings or in losses and loss adjustment expense reserves prior to occurrence of the catastrophe event. The Company believes that a discussion of the effect of catastrophes is meaningful for investors to understand the variability of periodic earnings. For U.S. events, a catastrophe is an event that causes $25 or more in industry insured property losses and affects a significant number of property and casualty policyholders and insurers, as defined by the Property Claim Service office of Verisk. For international events, the Company's approach is similar, informed, in part, by how Lloyd's of London defines catastrophes. The Company does not treat incurred benefits and losses arising from the COVID-19 pandemic as catastrophe losses.
The Company, along with others in the insurance industry, uses loss and expense ratios as measures of the Group Benefits segment's performance. The loss ratio is the ratio of benefits, losses and loss adjustment expenses, excluding those related to buyout premiums, to premiums and other considerations, excluding buyout premiums. The expense ratio is the ratio of insurance operating costs and other expenses (excluding integration and transaction costs associated with an acquired business) to premiums and other considerations, excluding buyout premiums. Buyout premiums represent takeover of open claim liabilities and other non-recurring premium amounts.
The Hartford Funds segment provides supplemental data on sales, redemptions, net flows and account value that indicate current trends in that segment.
33

Table of Contents

DISCUSSION OF NON-GAAP AND OTHER FINANCIAL MEASURES
The Company uses non-GAAP and other financial measures in this Investor Financial Supplement to assist investors in analyzing the Company's operating performance. Because the Company's calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing the Company's non-GAAP and other financial measures to those of other companies. Non-GAAP measures are indicated with an asterisk the first time they appear in this document.
Core earnings- The Hartford uses the non-GAAP measure core earnings as an important measure of the Company’s operating performance. The Hartford believes that core earnings provides investors with a valuable measure of the performance of the Company’s ongoing businesses because it reveals trends in our insurance and financial services businesses that may be obscured by including the net effect of certain items. Therefore, the following items are excluded from core earnings:
•Certain realized capital gains and losses - Some realized capital gains and losses are primarily driven by investment decisions and external economic developments, the nature and timing of which are unrelated to the insurance and underwriting aspects of our business. Accordingly, core earnings excludes the effect of all realized gains and losses that tend to be highly variable from period to period based on capital market conditions. The Hartford believes, however, that some realized capital gains and losses are integrally related to our insurance operations, so core earnings includes net realized gains and losses such as net periodic settlements on credit derivatives. These net realized gains and losses are directly related to an offsetting item included in the income statement such as net investment income.
•Restructuring and other costs - Costs incurred as part of a restructuring plan are not a recurring operating expense of the business.
•Loss on extinguishment of debt - Largely consisting of make-whole payments or tender premiums upon paying debt off before maturity, these losses are not a recurring operating expense of the business.
•Gains and losses on reinsurance transactions - Gains or losses on reinsurance, such as those entered into upon sale of a business or to reinsure loss reserves, are not a recurring operating expense of the business.
•Integration and transaction costs in connection with an acquired business - As transaction costs are incurred upon acquisition of a business and integration costs are completed within a short period after an acquisition, they do not represent ongoing costs of the business.
•Change in loss reserves upon acquisition of a business - These changes in loss reserves are excluded from core earnings because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition.
•Deferred gain resulting from retroactive reinsurance and subsequent changes in the deferred gain - Retroactive reinsurance agreements economically transfer risk to the reinsurers and including the full benefit from retroactive reinsurance in core earnings provides greater insight into the economics of the business.
•Change in valuation allowance on deferred taxes related to non-core components of pre-tax income - These changes in valuation allowances are excluded from core earnings because they relate to non-core components of pre-tax income, such as tax attributes like capital loss carryforwards.
•Results of discontinued operations - These results are excluded from core earnings for businesses sold or held for sale because such results could obscure the ability to compare period over period results for our ongoing businesses.
In addition to the above components of net income available to common stockholders that are excluded from core earnings, preferred stock dividends declared, which are excluded from net income available to common stockholders, are included in the determination of core earnings. Preferred stock dividends are a cost of financing more akin to interest expense on debt and are expected to be a recurring expense as long as the preferred stock is outstanding.
Net income (loss) and net income (loss) available to common stockholders are the most directly comparable U.S. GAAP measures to core earnings. Core earnings should not be considered as a substitute for net income (loss) or net income (loss) available to common stockholders and does not reflect the overall profitability of the Company’s business. Therefore, The Hartford believes that it is useful for investors to evaluate net income (loss), net income (loss) available to common stockholders, and core earnings when reviewing the Company’s performance. A reconciliation of net income (loss) available to common stockholders to core earnings is set forth on page 2.
Core earnings per share-This is a non-GAAP per share measure calculated using the non-GAAP financial measure core earnings rather than the GAAP measure net income. The Company believes that core earnings per share provides investors with a valuable measure of the Company's operating performance for the same reasons applicable to its underlying measure, core earnings. Net income (loss) available to common stockholders per share (defined as "net income (loss) per share") is the most directly comparable U.S. GAAP measures. Core earnings per share should not be considered as a substitute for net income (loss) per share and does not reflect the overall profitability of the Company's business. Therefore, the Company believes that it is useful for investors to evaluate net income (loss) per share and core earnings per share when reviewing our performance. A reconciliation of net income (loss) available to common stockholders per share to core earnings per share is set forth below.
34

Table of Contents

BASIC EARNINGS PER SHARE

| THREE MONTHS ENDED |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
Net Income available to common stockholders per share | $ | 0.68 |  | $ | 1.48 |  | $ | 1.26 |  | $ | 1.29 |  | $ | 0.75 |  |  |  |  |  |  |
Adjustments made to reconcile net income available to common stockholders per share to core earnings per share: |  |  |  |  |  |  |  |  |  |  |
Net realized capital losses (gains), excluded from core earnings, before tax | (0.21) |  | (0.28) |  | (0.02) |  | (0.30) |  | 0.65 |  |  |  |  |  |  |
Restructuring and other costs, before tax | 0.03 |  | 0.05 |  | 0.24 |  | — |  | — |  |  |  |  |  |  |
Integration and transaction costs associated with an acquired business, before tax | 0.03 |  | 0.03 |  | 0.04 |  | 0.04 |  | 0.04 |  |  |  |  |  |  |
Change in deferred gain on retroactive reinsurance, before tax | 0.02 |  | 0.60 |  | 0.04 |  | 0.15 |  | 0.08 |  |  |  |  |  |  |
Income tax expense (benefit) on items excluded from core earnings | 0.02 |  | (0.11) |  | (0.09) |  | 0.04 |  | (0.17) |  |  |  |  |  |  |
Core earnings per share | $ | 0.57 |  | $ | 1.77 |  | $ | 1.47 |  | $ | 1.22 |  | $ | 1.35 |  |  |  |  |  |  |

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

| THREE MONTHS ENDED |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
Net Income available to common stockholders per diluted share | $ | 0.67 |  | $ | 1.47 |  | $ | 1.26 |  | $ | 1.29 |  | $ | 0.74 |  |  |  |  |  |  |
Adjustments made to reconcile net income available to common stockholders per diluted share to core earnings per diluted share: |  |  |  |  |  |  |  |  |  |  |
Net realized capital losses (gains), excluded from core earnings, before tax | (0.21) |  | (0.28) |  | (0.02) |  | (0.30) |  | 0.64 |  |  |  |  |  |  |
Restructuring and other costs, before tax | 0.03 |  | 0.05 |  | 0.24 |  | — |  | — |  |  |  |  |  |  |
Integration and transaction costs associated with an acquired business, before tax | 0.02 |  | 0.03 |  | 0.04 |  | 0.04 |  | 0.04 |  |  |  |  |  |  |
Change in deferred gain on retroactive reinsurance, before tax | 0.02 |  | 0.59 |  | 0.04 |  | 0.15 |  | 0.08 |  |  |  |  |  |  |
Income tax expense (benefit) on items excluded from core earnings | 0.03 |  | (0.10) |  | (0.10) |  | 0.04 |  | (0.16) |  |  |  |  |  |  |
Core earnings per diluted share | $ | 0.56 |  | $ | 1.76 |  | $ | 1.46 |  | $ | 1.22 |  | $ | 1.34 |  |  |  |  |  |  |

Book value per diluted share (excluding AOCI)-This is a non-GAAP per share measure that is calculated by dividing (a) common stockholders' equity, excluding AOCI, after tax, by (b) common shares outstanding and dilutive potential common shares. The Company provides this measure to enable investors to analyze the amount of the Company's net worth that is primarily attributable to the Company's business operations. The Company believes that excluding AOCI from the numerator is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Book value per diluted share is the most directly comparable U.S. GAAP measure. Reconciliations of book value per common share and book value per diluted share to book value per common share, excluding AOCI and book value per diluted share, excluding AOCI, are set forth on page 1.
Core Earnings Return on Equity- The Company provides different measures of the return on stockholders' equity (ROE). Core earnings ROE is calculated based on non-GAAP financial measures. Core earnings ROE is calculated by dividing (a) the non-GAAP measure core earnings for the prior four fiscal quarters by (b) the non-GAAP measure average common stockholders' equity, excluding AOCI. Net income ROE is the most directly comparable U.S. GAAP measure. The Company excludes AOCI in the calculation of core earnings ROE to provide investors with a measure of how effectively the Company is investing the portion of the Company's net worth that is primarily attributable to the Company's business operations. The Company provides to investors return on equity measures based on its non-GAAP core earnings financial measure for the reasons set forth in the core earnings definition. A reconciliation of Net income (loss) ROE to Core earnings ROE is set forth below:
35

Table of Contents

| LAST TWELVE MONTHS ENDED
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |
Net income ROE | 10.5 | % | 10.0 | % | 10.4 | % | 11.3 | % | 11.8 | % |  |  |
Adjustments to reconcile net income (loss) ROE to core earnings ROE: |  |  |  |  |  |  |  |
Net realized capital losses (gains), excluded from core earnings, before tax | (1.8 | %) | 0.1 | % | 0.3 | % | (0.2 | %) | — | % |  |  |
Restructuring and other costs, before tax | 0.7 | % | 0.6 | % | 0.5 | % | — | % | — | % |  |  |
Loss on extinguishment of debt, before tax | — | % | — | % | — | % | 0.6 | % | 0.6 | % |  |  |
Loss on reinsurance transaction, before tax | — | % | — | % | — | % | — | % | 0.6 | % |  |  |
Integration and transaction costs associated with an acquired business, before tax | 0.3 | % | 0.3 | % | 0.4 | % | 0.5 | % | 0.6 | % |  |  |
Changes in loss reserves upon acquisition of a business, before tax | — | % | — | % | — | % | — | % | 0.7 | % |  |  |
Change in deferred gain on retroactive reinsurance, before tax | 1.8 | % | 1.8 | % | 0.7 | % | 0.6 | % | 0.3 | % |  |  |
Income tax expense (benefit) on items not included in core earnings | (0.3 | %) | (0.7 | %) | (0.4 | %) | (0.3 | %) | (0.6 | %) |  |  |
Impact of AOCI, excluded from denominator of core earnings ROE | (0.3 | %) | 0.6 | % | 0.4 | % | 0.2 | % | (0.7 | %) |  |  |
Core earnings ROE | 10.9 | % | 12.7 | % | 12.3 | % | 12.7 | % | 13.3 | % |  |  |

Common stockholders' equity, excluding AOCI- This non-GAAP measure is calculated as total stockholders' equity less preferred stock and AOCI. Total stockholders' equity is the most directly comparable GAAP measure. The Company provides this measure to enable investors to analyze the amount of the Company's net worth that is primarily attributable to the Company's business operations. The Company believes that excluding AOCI is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. A reconciliation of common stockholders' equity to its most directly comparable GAAP measure, total stockholders' equity, is set forth on page 5.
Total capitalization, excluding AOCI, net of tax- This non-GAAP measure is calculated as total debt plus total stockholders' equity, excluding the impacts of AOCI included in shareholders’ equity. Total capitalization, including AOCI, net of tax is the most directly comparable GAAP measure. Total debt to capitalization ratio excluding, AOCI is calculated by dividing total debt to total capitalization excluding, AOCI, net of tax. The Company provides this measure to enable investors to analyze the Company’s financial leverage. The Company believes that excluding AOCI is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Reconciliations of capitalization metrics, are set forth on page 5.
Underwriting gain (loss)- The Hartford's management evaluates profitability of the Commercial and Personal Lines segments primarily on the basis of underwriting gain or loss. Underwriting gain (loss) is a before tax non-GAAP measure that represents earned premiums less incurred losses, loss adjustment expenses and underwriting expenses. Net income (loss) is the most directly comparable GAAP measure. Underwriting gain (loss) is influenced significantly by earned premium growth and the adequacy of The Hartford's pricing. Underwriting profitability over time is also greatly influenced by The Hartford's underwriting discipline, as management strives to manage exposure to loss through favorable risk selection and diversification, effective management of claims, use of reinsurance and its ability to manage its expenses. The Hartford believes that the measure underwriting gain (loss) provides investors with a valuable measure of profitability, before tax, derived from underwriting activities, which are managed separately from the Company's investing activities. Reconciliations of net income (loss) to underwriting gain (loss) for the Company's P&C businesses are set forth below.
Underlying underwriting gain (loss)-This non-GAAP measure of underwriting profitability represents underwriting gain (loss) before current accident year catastrophes, PYD and current accident year change in loss reserves upon acquisition of a business. The most directly comparable GAAP measure is net income (loss). The Company believes underlying underwriting gain (loss) is important to understand the Company’s periodic earnings because the volatile and unpredictable nature (i.e., the timing and amount) of catastrophes and prior accident year reserve development could obscure underwriting trends. The changes to loss reserves upon acquisition of a business are also excluded from underlying underwriting gain (loss) because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition as such trends are valuable to our investors' ability to assess the Company's financial performance. Reconciliation of net income (loss) to underlying underwriting gain (loss) for the Company's P&C businesses are set forth below.
36

Table of Contents

PROPERTY & CASUALTY

| THREE MONTHS ENDED |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
Net income | $ | 251 |  | $ | 468 |  | $ | 404 |  | $ | 310 |  | $ | 224 |  |  |  |  |  |  |
Adjustments to reconcile net income to underlying underwriting gain: |  |  |  |  |  |  |  |  |  |  |
Net investment income | (378) |  | (425) |  | (371) |  | (242) |  | (334) |  |  |  |  |  |  |
Net realized capital losses (gains) | (53) |  | (54) |  | 21 |  | (74) |  | 173 |  |  |  |  |  |  |
Net servicing and other expense (income) | (2) |  | 3 |  | 4 |  | 7 |  | 3 |  |  |  |  |  |  |
Income tax expense | 55 |  | 99 |  | 73 |  | 88 |  | 54 |  |  |  |  |  |  |
Underwriting gain | (127) |  | 91 |  | 131 |  | 89 |  | 120 |  |  |  |  |  |  |
Current accident year catastrophes | 214 |  | 55 |  | 229 |  | 248 |  | 74 |  |  |  |  |  |  |
Prior accident year development | 229 |  | 184 |  | (75) |  | (268) |  | 23 |  |  |  |  |  |  |
Underlying underwriting gain | $ | 316 |  | $ | 330 |  | $ | 285 |  | $ | 69 |  | $ | 217 |  |  |  |  |  |  |

COMMERCIAL LINES

| THREE MONTHS ENDED |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
Net income | $ | 129 |  | $ | 478 |  | $ | 323 |  | $ | (66) |  | $ | 121 |  |  |  |  |  |  |
Adjustments to reconcile net income to underlying underwriting gain: |  |  |  |  |  |  |  |  |  |  |
Net servicing income | (2) |  | (2) |  | (1) |  | — |  | (1) |  |  |  |  |  |  |
Net investment income | (327) |  | (363) |  | (316) |  | (204) |  | (277) |  |  |  |  |  |  |
Net realized capital losses (gains) | (44) |  | (45) |  | 26 |  | (64) |  | 143 |  |  |  |  |  |  |
Other expense | 4 |  | 10 |  | 8 |  | 11 |  | 6 |  |  |  |  |  |  |
Income tax expense (benefit) | 24 |  | 105 |  | 52 |  | (9) |  | 28 |  |  |  |  |  |  |
Underwriting gain (loss) | (216) |  | 183 |  | 92 |  | (332) |  | 20 |  |  |  |  |  |  |
Current accident year catastrophes | 175 |  | 42 |  | 107 |  | 193 |  | 55 |  |  |  |  |  |  |
Prior accident year development | 238 |  | (17) |  | (57) |  | 77 |  | 41 |  |  |  |  |  |  |
Underlying underwriting gain (loss) | $ | 197 |  | $ | 208 |  | $ | 142 |  | $ | (62) |  | $ | 116 |  |  |  |  |  |  |

37

Table of Contents

PERSONAL LINES

| THREE MONTHS ENDED |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
Net income | $ | 135 |  | $ | 170 |  | $ | 79 |  | $ | 371 |  | $ | 98 |  |  |  |  |  |  |
Adjustments to reconcile net income (loss) to underlying underwriting gain: |  |  |  |  |  |  |  |  |  |  |
Net servicing income | (4) |  | (4) |  | (5) |  | (3) |  | (2) |  |  |  |  |  |  |
Net investment income | (35) |  | (47) |  | (41) |  | (28) |  | (41) |  |  |  |  |  |  |
Net realized capital losses (gains) | (7) |  | (7) |  | (3) |  | (8) |  | 23 |  |  |  |  |  |  |
Other expense (income) | — |  | — |  | 2 |  | (1) |  | — |  |  |  |  |  |  |
Income tax expense | 35 |  | 42 |  | 20 |  | 97 |  | 25 |  |  |  |  |  |  |
Underwriting gain | 124 |  | 154 |  | 52 |  | 428 |  | 103 |  |  |  |  |  |  |
Current accident year catastrophes | 39 |  | 13 |  | 122 |  | 55 |  | 19 |  |  |  |  |  |  |
Prior accident year development | (42) |  | (42) |  | (29) |  | (349) |  | (18) |  |  |  |  |  |  |
Underlying underwriting gain | $ | 121 |  | $ | 125 |  | $ | 145 |  | $ | 134 |  | $ | 104 |  |  |  |  |  |  |

P&C OTHER OPERATIONS

| THREE MONTHS ENDED |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
Net income (loss) | $ | (13) |  | $ | (180) |  | $ | 2 |  | $ | 5 |  | $ | 5 |  |  |  |  |  |  |
Adjustments to reconcile net income to underlying underwriting gain (loss): |  |  |  |  |  |  |  |  |  |  |
Net investment income | (16) |  | (15) |  | (14) |  | (10) |  | (16) |  |  |  |  |  |  |
Net realized capital losses (gains) | (2) |  | (2) |  | (2) |  | (2) |  | 7 |  |  |  |  |  |  |
Other expense (income) | — |  | (1) |  | — |  | — |  | — |  |  |  |  |  |  |
Income tax expense (benefit) | (4) |  | (48) |  | 1 |  | — |  | 1 |  |  |  |  |  |  |
Underwriting loss | (35) |  | (246) |  | (13) |  | (7) |  | (3) |  |  |  |  |  |  |
Prior accident year development | 33 |  | 243 |  | 11 |  | 4 |  | — |  |  |  |  |  |  |
Underlying underwriting loss | $ | (2) |  | $ | (3) |  | $ | (2) |  | $ | (3) |  | $ | (3) |  |  |  |  |  |  |

Underlying combined ratio-This non-GAAP financial measure of underwriting results represents the combined ratio before catastrophes, prior accident year development and current accident year change in loss reserves upon acquisition of a business. Combined ratio is the most directly comparable GAAP measure. The underlying combined ratio represents the combined ratio for the current accident year, excluding the impact of current accident year catastrophes and current accident year change in loss reserves upon acquisition of a business. The Company believes this ratio is an important measure of the trend in profitability since it removes the impact of volatile and unpredictable catastrophe losses and prior accident year loss and loss adjustment expense reserve development. The changes to loss reserves upon acquisition of a business are excluded from underlying combined ratio because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition as such trends are valuable to our investors' ability to assess the Company's financial performance. A reconciliation of the combined ratio to the underlying combined ratio for Property & Casualty, Commercial Lines, and Personal Lines is set forth on pages 10, 13 and 17, respectively.
38

Table of Contents

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

| THREE MONTHS ENDED |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
Net income margin | 0.6 | % | 3.9 | % | 8.0 | % | 6.7 | % | 6.9 | % |  |  |  |  |  |
Adjustments to reconcile net income margin to core earnings margin: |  |  |  |  |  |  |  |  |  |  |
Net realized capital losses (gains) excluded from core earnings, before tax | (1.1) | % | (1.1) | % | (0.6) | % | (0.1) | % | 0.6 | % |  |  |  |  |  |
Integration and transaction costs associated with acquired business, before tax | 0.1 | % | 0.2 | % | 0.3 | % | 0.3 | % | 0.3 | % |  |  |  |  |  |
Income tax expense (benefit) | 0.2 | % | 0.3 | % | 0.2 | % | (0.1) | % | (0.1) | % |  |  |  |  |  |
Impact of excluding buyouts from denominator of core earnings margin | — | % | — | % | — | % | 0.1 | % | 0.1 | % |  |  |  |  |  |
Core earnings margin | (0.2) | % | 3.3 | % | 7.9 | % | 6.9 | % | 7.8 | % |  |  |  |  |  |

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

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

39

Table of Contents

Net investment income, excluding limited partnerships and other alternative investments- This non-GAAP measure is the amount of net investment income, on a Consolidated, P&C or Group Benefits level earned from invested assets, excluding the net investment income related to limited partnerships and other alternative investments. The Company believes that net investment income, excluding limited partnerships and other alternative instruments, provides investors with an important measure of the trend in investment earnings because it excludes the impact of the volatility in returns related to limited partnerships and other alternative instruments. Net investment income is the most directly comparable GAAP measure. A reconciliation of net investment income to net investment income, excluding limited partnerships and other alternative investments is set forth below.
CONSOLIDATED

| THREE MONTHS ENDED |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
Total net investment income | $ | 509 |  | $ | 556 |  | $ | 492 |  | $ | 339 |  | $ | 459 |  |  |  |  |  |  |
Adjustment for loss (gain) from limited partnerships and other alternative investments | (112) |  | (152) |  | (83) |  | 71 |  | (58) |  |  |  |  |  |  |
Net investment income excluding limited partnerships and other alternative investments | $ | 397 |  | $ | 404 |  | $ | 409 |  | $ | 410 |  | $ | 401 |  |  |  |  |  |  |

PROPERTY & CASUALTY

| THREE MONTHS ENDED |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
Total net investment income | $ | 378 |  | $ | 425 |  | $ | 371 |  | $ | 242 |  | $ | 334 |  |  |  |  |  |  |
Adjustment for loss (gain) from limited partnerships and other alternative investments | (84) |  | (128) |  | (72) |  | 62 |  | (48) |  |  |  |  |  |  |
Net investment income excluding limited partnerships and other alternative investments | $ | 294 |  | $ | 297 |  | $ | 299 |  | $ | 304 |  | $ | 286 |  |  |  |  |  |  |

GROUP BENEFITS

| THREE MONTHS ENDED |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
Total net investment income | $ | 127 |  | $ | 124 |  | $ | 117 |  | $ | 92 |  | $ | 115 |  |  |  |  |  |  |
Adjustment for loss (gain) from limited partnerships and other alternative investments | (28) |  | (24) |  | (11) |  | 9 |  | (10) |  |  |  |  |  |  |
Net investment income excluding limited partnerships and other alternative investments | $ | 99 |  | $ | 100 |  | $ | 106 |  | $ | 101 |  | $ | 105 |  |  |  |  |  |  |

40

Table of Contents

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

| THREE MONTHS ENDED |  |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
Annualized investment yield | 3.8 | % | 4.3 | % | 3.8 | % | 2.7 | % | 3.7 | % |  |  |  |  |  |
Adjustment for loss (gain) from limited partnerships and other alternative investments | (0.7) | % | (1.1) | % | (0.5) | % | 0.7 | % | (0.4) | % |  |  |  |  |  |
Annualized investment yield excluding limited partnerships and other alternative investments | 3.1 | % | 3.2 | % | 3.3 | % | 3.4 | % | 3.3 | % |  |  |  |  |  |

PROPERTY & CASUALTY

| THREE MONTHS ENDED |  |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
Annualized investment yield | 3.9 | % | 4.4 | % | 3.9 | % | 2.6 | % | 3.6 | % |  |  |  |  |  |
Adjustment for loss (gain) from limited partnerships and other alternative investments | (0.7) | % | (1.2) | % | (0.6) | % | 0.9 | % | (0.4) | % |  |  |  |  |  |
Annualized investment yield excluding limited partnerships and other alternative investments | 3.2 | % | 3.2 | % | 3.3 | % | 3.5 | % | 3.2 | % |  |  |  |  |  |

GROUP BENEFITS

| THREE MONTHS ENDED |  |
| Mar 31 2021 | Dec 31 2020 | Sept 30 2020 | Jun 30 2020 | Mar 31 2020 |  |  |  |  |  |
Annualized investment yield | 4.4 | % | 4.3 | % | 4.1 | % | 3.2 | % | 4.0 | % |  |  |  |  |  |
Adjustment for loss (gain) from limited partnerships and other alternative investments | (0.9) | % | (0.8) | % | (0.3) | % | 0.4 | % | (0.3) | % |  |  |  |  |  |
Annualized investment yield excluding limited partnerships and other alternative investments | 3.5 | % | 3.5 | % | 3.8 | % | 3.6 | % | 3.7 | % |  |  |  |  |  |

41