Form 8-K HARTFORD FINANCIAL SERVI For: Apr 28

April 28, 2022 4:33 PM

NEWS RELEASE

The Hartford Announces First Quarter 2022 Financial Results

•First quarter 2022 net income available to common stockholders of $440 million ($1.30 per diluted share) increased 80% from the 2021 period, and core earnings* of $561 million (core earnings per diluted share* of $1.66) were up 176% from the prior year quarter.

•Net income ROE for the trailing 12 months of 15.4% and core earnings ROE* for the same period of 14.8%.

•Property & Casualty (P&C) written premiums rose 9% in first quarter 2022 driven by Commercial Lines premium growth of 12%.

•Commercial Lines first quarter combined ratio of 90.3 improved 19.4 points and the underlying combined ratio* of 88.3 improved 2.9 points compared with the prior year quarter.

•Group Benefits fully insured ongoing premiums were up 5%, compared with first quarter 2021, driven by an increase in exposure on existing accounts and strong persistency.

•During the quarter, The Hartford returned $530 million to shareholders, including $400 million of shares repurchased and $130 million in common stockholder dividends paid.

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

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

HARTFORD, Conn., April. 28, 2022 – The Hartford (NYSE: HIG) today announced financial results for the quarter ended March 31, 2022.

“The Hartford is off to a strong start in 2022 delivering a trailing 12-month core earnings ROE of 14.8%. Results were driven by another quarter of profitable growth and expanding margins in Commercial Lines, excellent partnership returns, and lower excess mortality in Group Benefits,” said Chairman and CEO Christopher Swift.

President, Doug Elliot added, “During the first quarter, our Property & Casualty business sustained the momentum built during 2021. Commercial underwriting results were outstanding with expanding margin contributions from each business. Commercial pricing moderated from the fourth quarter but is still exceeding loss trends across most product lines. In Personal Lines, we are pleased with the performance and a combined ratio of 90.4. Prevail is contributing to new business growth and rate filings will address inflation and supply chain pressures in both auto and homeowners. Our Property & Casualty first quarter results were strong, and we are well positioned for continued profitable growth.”

Swift continued, “The Hartford is a proven performer. Quarter after quarter results illustrate how our strategy translates into a consistent and sustainable financial performance. I am confident that the company has never been in a better position to grow, deliver on our goals and maximize value creation for our stakeholders.”

CONSOLIDATED RESULTS:


	Three Months Ended
($ in millions except per share data)	Mar 31 2022	Mar 31 2021	Change
Net income available to common stockholders	$440	$244	80%
Net income available to common stockholders per diluted share1	$1.30	$0.67	94%

Core earnings2	$561	$203	176%
Core earnings per diluted share2	$1.66	$0.56	196%

Book value per diluted share	$46.36	$48.04	(3)%
Book value per diluted share (ex. AOCI)2	$51.42	$47.31	9%

Net income available to common stockholders' return on equity (ROE)3, last 12-months	15.4%	10.5%	4.9
Core earnings ROE2,3, last 12-months	14.8%	10.9%	3.9

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

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

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

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

First quarter 2022 net income available to common stockholders was $440 million, or $1.30 per diluted share, up 80% from first quarter 2021, primarily due to a $435 million, before tax, change from an underwriting loss* to an underwriting gain in first quarter 2022 and a decrease in excess mortality in group life, partially offset by a $225 million, before tax, change to net realized losses in first quarter 2022.

First quarter core earnings of $561 million, or $1.66 per diluted share, rose 176% from first quarter 2021. The increase was primarily due to:

•Favorable P&C prior accident year development (PYD) within core earnings of $36 million, before tax, in first quarter 2022, largely driven by reserve decreases in workers’ compensation, compared with $223 million of unfavorable PYD in first quarter 2021 that was primarily due to a reserve increase for general liability driven by the initial settlement with Boy Scouts of America (BSA) related to sexual abuse claims.

•A reduction in P&C current accident year (CAY) catastrophe (CAT) losses, net of reinsurance, to $98 million, before tax, in first quarter 2022, including $27 million from the Ukraine conflict, compared with $214 million in first quarter 2021.

•An increase in earnings generated by 8% growth in P&C earned premium and 5% increase in Group Benefits fully insured ongoing premium.

•A reduction in excess mortality losses in group life with $96 million before tax of losses in first quarter 2022, compared with $185 million in first quarter 2021.

•A reduction in P&C CAY COVID-19 incurred losses with no losses in first quarter 2022 compared with $24 million, before tax, of losses in first quarter 2021.

•A decrease in the Commercial Lines underlying loss and loss adjustment expense ratio before COVID-19 incurred losses* of 0.8 points to 56.1% in first quarter 2022 from 56.9% in first quarter 2021.

•An increase in earnings from Hartford Funds driven by higher assets under management

Partially offset by:

•An increase in the group disability loss ratio primarily reflecting less favorable prior incurral year development on long-term disability and an increase in the group life loss ratio before considering excess mortality claims due to a higher loss ratio under group accidental death claims business.

•An increase in the Personal Lines underlying loss ratio* of 4.4 points to 60.8% in first quarter 2022 from 56.4% in first quarter 2021, driven by an increase in auto claim frequency and severity.

•An increase in insurance operating costs and other expenses, primarily driven by higher technology costs, higher claim costs to handle elevated claim levels resulting from the pandemic and a decrease in the allowance for credit losses on premiums receivable in the 2021 period, partially offset by incremental savings from the Hartford Next program and a reduction in AARP direct marketing costs.

Net investment income was flat in first quarter 2022 compared with the prior year period as greater income from limited partnerships and other alternative investments (LP’s) and the effect of a higher level of invested assets was offset by a lower yield on fixed maturities resulting from reinvesting at lower rates during the 2021 calendar year.

March 31, 2022, book value per diluted share of $46.36 decreased 10% from $51.36 at Dec. 31, 2021, principally due to a change from net unrealized gains to net unrealized losses on investments within AOCI as a result of an increase in interest rates and wider credit spreads.

Book value per diluted share (excluding AOCI)* of $51.42 as of March 31, 2022, increased from $50.86 at Dec. 31, 2021, as the impact from net income in excess of stockholder dividends during the first quarter of 2022 was partially offset by the dilutive effect of share repurchases.

In first quarter 2022, The Hartford returned $530 million to stockholders, consisting of $130 million in common stockholder dividends paid and $400 million of common share repurchases.

Net income available to common stockholders' ROE (net income ROE) was 15.4% for the twelve month period ending March 31, 2022.

Core earnings ROE for the twelve month period ending March 31, 2022 was 14.8%, an increase of 3.9 points from first quarter 2021 due to higher trailing 12-month core earnings, partially offset by higher average common stockholder's equity ex AOCI.

BUSINESS RESULTS:

Commercial Lines


	Three Months Ended
($ in millions, unless otherwise noted)	Mar 31 2022	Mar 31 2021	Change
Net income	$383	$129	197%
Core earnings	$456	$105	NM
Written premiums	$2,809	$2,503	12%
Underwriting gain (loss)1	$242	$(216)	NM
Underlying underwriting gain1	$290	$197	47%
Losses and loss adjustment expense ratio
Current accident year before catastrophes	56.1	58.0	(1.9)
Current accident year catastrophes	3.3	7.8	(4.5)
Unfavorable (favorable) prior accident year development	(1.3)	10.6	(11.9)
Expenses	31.9	32.9	(1.0)
Policyholder dividends	0.3	0.3	—

Combined ratio	90.3	109.7	(19.4)
Impact of catastrophes and PYD on combined ratio	(2.0)	(18.4)	16.4

Underlying combined ratio1	88.3	91.2	(2.9)

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

First quarter 2022 net income of $383 million increased from net income of $129 million in first quarter 2021, principally due to a $458 million, before tax, change from an underwriting loss to an underwriting gain, partially offset by a $135 million, before tax, change to net realized losses in first quarter 2022.

Commercial Lines core earnings of $456 million in first quarter 2022 increased by $351 million from first quarter 2021, primarily from:

•Favorable P&C prior accident year development (PYD) within core earnings of $33 million, before tax, in first quarter 2022, driven by reserve decreases in workers’ compensation, compared with $232 million of unfavorable PYD in first quarter 2021 that was primarily due to a reserve increase for general liability driven by the initial settlement with BSA on sexual abuse claims.

•A $94 million, before tax, decrease in CAY CAT losses, net of reinsurance, with first quarter 2022 losses including $27 million from the Ukraine conflict with the remainder from tornado, wind and hail events in the Southeast and winter storms along the East Coast. The $27 million before tax of catastrophe losses in first quarter 2022 related to the Ukraine conflict, largely recorded within Global Specialty, consisted of exposures under political violence and terrorism policies including aviation war, and under credit and political risk insurance policy exposures.

•An increase in earnings generated by 11% growth in earned premium.

•There were no current accident year COVID-19 incurred losses in first quarter 2022 compared with $24 million in the first quarter 2021.

•A decrease in the underlying combined ratio before COVID-19* losses of 1.8 points, including a lower expense ratio of 1.0 points and a lower underlying loss and loss adjustment expense ratio before COVID-19 losses of 0.8 points, driven by earned pricing exceeding loss trends in several lines.

Combined ratio was 90.3 in first quarter 2022, 19.4 points lower than 109.7 in first quarter 2021, primarily due to an 11.9 point change to net favorable PYD, 4.5 points of lower CAY CAT losses, and a 2.9 point improvement in the underlying combined ratio.

Underlying combined ratio was 88.3, improving 2.9 points from first quarter 2021 due to COVID-19 losses incurred in first quarter 2021, a lower underwriting expense ratio and lower loss ratios before COVID 19.

•Small Commercial underlying combined ratio of 85.9 improved by 2.4 points from first quarter 2021 driven primarily by COVID-19 losses incurred in first quarter 2021 and a lower expense ratio.

•Middle & Large Commercial underlying combined ratio of 91.5 improved by 3.8 points from first quarter 2021 primarily due to lower non-CAT property losses, COVID-19 losses incurred in first quarter 2021, and a lower expense ratio.

•Global Specialty underlying combined ratio of 88.2 improved by 1.7 points from first quarter 2021 primarily due to a lower expense ratio, COVID-19 losses incurred in first quarter 2021 and lower loss ratios in U.S. lines of business, partially offset by a higher loss ratio in international, primarily due to a non-catastrophe marine loss in the quarter.

The decrease in the expense ratio was driven by the impact of higher earned premium and incremental savings from the Hartford Next program, partially offset by higher technology costs and a decrease in the allowance for credit losses on premiums receivable in the 2021 period.

First quarter 2022 written premiums of $2.8 billion were up 12% from first quarter 2021, reflecting higher policy count retention across all lines, new business premium growth in small commercial, the effect of renewal written price increases across all lines and higher audit and endorsement premiums from a larger exposure base, including due to higher payrolls.

Personal Lines


	Three Months Ended
($ in millions, unless otherwise noted)	Mar 31 2022	Mar 31 2021	Change
Net income	$77	$135	(43%)
Core earnings	$84	$131	(36%)
Written premiums	$707	$715	(1)%
Underwriting gain	$69	$124	(44%)
Underlying underwriting gain	$83	$121	(31%)
Losses and loss adjustment expense ratio
Current accident year before catastrophes	60.8	56.4	4.4
Current accident year catastrophes	2.4	5.3	(2.9)
Unfavorable (favorable) prior accident year development	(0.4)	(5.7)	5.3
Expenses	27.6	27.1	0.5
Combined ratio	90.4	83.1	7.3
Impact of catastrophes and PYD on combined ratio	(2.0)	0.4	(2.4)
Underlying combined ratio	88.5	83.5	5.0

Net income of $77 million in first quarter 2022 was down $58 million from first quarter 2021 largely driven by a $55 million before tax decrease in underwriting gain and a $16 million before tax change to net realized losses in first quarter 2022.

Personal Lines core earnings of $84 million decreased by $47 million due to:

•Lower net favorable PYD, with $3 million before tax of favorable PYD in first quarter of 2022 driven by auto liability reserve releases compared with $42 million of favorable PYD in first quarter 2021 that included higher reserve releases for auto liability and catastrophes

•A decrease in underlying underwriting gain, largely driven by higher auto claim frequency and severity and a decrease in earnings associated with a 2% decline in earned premium

•Partially offset by lower CAY CAT losses with catastrophes of $17 million before tax in first quarter 2022 driven by tornado, wind and hail events in the Southeast and winter storms along the East Coast.

Combined ratio of 90.4 in first quarter 2022 increased 7.3 points relative to first quarter 2021, primarily due to lower net favorable PYD and a higher underlying combined ratio, partially offset by lower CAY CAT losses.

Underlying combined ratio of 88.5 was 5.0 points higher than first quarter 2021, primarily due to higher auto loss costs and, to a lesser extent, a higher expense ratio.

•The auto underlying combined ratio of 93.3 increased 7.0 points from first quarter 2021, primarily due to higher auto frequency and severity and a higher expense ratio, partially offset by an increase in earned pricing

•The homeowners underlying combined ratio of 77.4 was relatively flat from 77.2 in first quarter 2021 due to a slight increase in the expense ratio. The underlying loss and loss adjustment expense ratio was flat as an increase in severity was offset by lower frequency of weather claims and the effect of earned pricing increases.

•The increase in the expense ratio to 27.6 was driven by higher technology costs and the effect of a decline in earned premium, partially offset by lower AARP direct marketing costs and incremental savings from the Hartford Next program.

Written premiums in first quarter 2022 were $707 million compared with $715 million in first quarter 2021 primarily due to:

•A reduction in auto as non-renewed premium exceeded new business despite an increase in new business over first quarter 2021

•An increase in homeowners primarily due to an increase in new business and the effect of written pricing increases, partially offset by slightly lower policy count retention

•Higher renewal written price increases in auto in response to recent increases in loss cost trends

•Renewal written price increases in homeowners of 8.8% in first quarter 2022

Group Benefits


	Three Months Ended
($ in millions, unless otherwise noted)	Mar 31 2022	Mar 31 2021	Change
Net income (loss)	($6)	$9	(167)%
Core earnings (loss)	$8	($3)	NM
Fully insured ongoing premiums (ex. buyout premiums)	$1,438	$1,372	5%
Loss ratio	81.9%	84.3%	(2.4)
Expense ratio	25.9%	25.3%	0.6
Net income margin	(0.4)%	0.6%	(1.0)
Core earnings margin	0.5%	(0.2)%	0.7

Net income (loss) decreased to a $6 million loss in first quarter 2022 from $9 million of income in first quarter 2021, primarily driven by a change from $19 million before tax of net realized gains in first quarter 2021 to $16 million before tax of net realized losses in first quarter 2022.

Core earnings of $8 million in first quarter 2022 improved from a loss of $3 million in first quarter 2021 primarily due to lower excess mortality losses in group life and the effect of higher fully insured ongoing premiums, partially offset by a higher loss ratio before considering excess mortality, higher operating expenses and modestly lower net investment income.

Fully insured ongoing premiums were up 5%, compared with first quarter 2021, driven by an increase in exposure on existing accounts and strong persistency. Fully insured ongoing sales were $389 million in first quarter 2022, down 24% as the prior year period benefited from expansion of paid family medical leave programs in several states.

Loss ratio of 81.9% decreased 2.4 points from first quarter 2021 with a decrease in group life due to lower excess mortality, partially offset by an increase in group disability:

•Total group life loss ratio improved 9.9 points, to 98.4%, primarily due to lower excess mortality, primarily caused by direct and indirect impacts of COVID-19. Excess mortality losses were $96 million before tax in first quarter 2022 compared with $185 million in first quarter 2021. The $96 million of excess mortality losses in the first quarter of 2022 included $122 million of losses with dates of loss in the first quarter and a $26 net decrease of estimated losses from prior incurral years. Apart from excess mortality claims, the group life loss ratio increased primarily due to a higher loss ratio under group accidental death business.

•Total disability loss ratio of 73.2% increased 4.8 points compared with first quarter 2021, primarily due to less favorable prior incurral year development on long-term disability as the 2021 period benefitted from low incidence levels from earlier in the pandemic. The three month period ending March 31, 2022 included $9 million, or 1.1 points, of losses

on short-term disability claims related to COVID-19 as compared with $13 million, or 1.8 points, for the three months ended March 31, 2021.

Expense ratio of 25.9% increased 0.6 points from first quarter 2021, primarily driven by higher claim costs to handle elevated claim levels resulting from the pandemic and an increase in technology costs, partially offset by expense savings from the Hartford Next operational transformation and cost reduction program, and higher earned premiums.

Hartford Funds


	Three Months Ended
($ in millions, unless otherwise noted)	Mar 31 2022	Mar 31 2021	Change
Net income	$42	$47	(11)%
Core earnings	$50	$45	11%
Daily average Hartford Funds AUM	$150,131	$143,164	5%
Mutual Funds and exchange-traded funds (ETF) net flows	$(424)	$774	(155)%
Total Hartford Funds assets under management (AUM)	$148,046	$145,198	2%

Net income of $42 million in first quarter 2022 decreased from $47 million in first quarter 2021, largely due to a change from net realized gains to net realized losses related to investments in funds seeded by the company, partially offset by higher fee income.

Core earnings of $50 million increased from $45 million in first quarter 2021 as an increase in fee income, mostly attributable to higher daily average Hartford Funds AUM, and a higher tax benefit in the 2022 period for stock-based compensation was partially offset by higher variable expenses.

Daily average AUM of $150 billion in first quarter 2022 rose 5% from first quarter 2021 driven by net inflows and an increase in market values over the previous twelve months.

Despite net inflows over the previous four quarters, first quarter 2022 mutual fund and ETF net outflows totaled $424 million, compared with net inflows of $774 million in first quarter 2021. While market values of the funds increased over the previous twelve months, there was a net decrease in market value of $8.2 billion in the three months ended March 31, 2022.

Corporate


	Three Months Ended
($ in millions, unless otherwise noted)	Mar 31 2022	Mar 31 2021	Change
Net loss	$(59)	$(58)	(2)%
Net loss available to common stockholders	$(64)	$(63)	(2)%
Core loss	$(48)	$(60)	20%
Other revenue (loss)	$1	$(8)	NM
Net investment income, before tax	$3	$3	—%


Interest expense and preferred dividends, before tax	$67	$62	8%

Net loss of $59 million in first quarter 2022 compared with a net loss of $58 million in first quarter 2021, driven, in part, by a change to net realized losses in first quarter 2022, partially offset by lower restructuring costs related to Hartford Next of $5 million, before tax, in first quarter of 2022 compared with $11 million, before tax, in the 2021 period.

First quarter 2022 core loss of $48 million decreased $12 million compared with first quarter 2021 core loss of $60 million primarily due to a loss of $8 million before tax in the 2021 period from the company’s previously owned equity interest in Talcott Resolution and a higher tax benefit in the 2022 period for stock-based compensation, partially offset by an increase in interest expense.

INVESTMENT INCOME AND PORTFOLIO DATA:


	Three Months Ended
($ in millions, unless otherwise noted)	Mar 31 2022	Mar 31 2021	Change

Net investment income, before tax	$509	$509	—%
Annualized investment yield, before tax	3.6%	3.8%	(0.2)
Annualized investment yield, before tax, excluding LPs*	2.9%	3.1%	(0.2)
Annualized LP yield, before tax	14.6%	21.1%	(6.5)
Annualized investment yield, after tax	2.9%	3.1%	(0.2)

First quarter 2022 consolidated net investment income of $509 million was flat to first quarter 2021 as greater income from limited partnerships and other alternative investments and the effect of a higher level of invested assets was offset by a lower yield on fixed maturities resulting from reinvesting at lower rates in 2021.

Income from LPs was $126 million, before tax, in first quarter 2022, increasing from $112 million, before tax, in first quarter 2021, mostly driven by the sale of an underlying real estate property in the 2022 period and higher real estate fund valuations, partially offset by lower returns on private equity funds in the 2022 period. Income from LPs, including from private equity and other funds, is generally reported on a three-month lag.

The three months ended March 31, 2022 included $12 million before tax of credit losses on fixed maturities, available for sale, with $9 million driven by four issuers with Russian exposure. The company’s investments with Russian exposure have an amortized cost of $16 million and a fair value of $7 million. The company does not have any investments with exposure in Belarus or Ukraine.

Total invested assets of $56.0 billion decreased 3% from Dec. 31, 2021, primarily due to a decrease in valuations of fixed maturities driven by higher interest rates and wider credit spreads. The decrease in fair value of fixed maturities was partially offset by an increase in other asset classes, including mortgage loans and LPs with the increase in LP’s primarily driven by increased valuations and additional investments in real estate joint ventures.

CONFERENCE CALL

The Hartford will discuss its first quarter 2022 financial results on a webcast at 9:00 a.m. EDT on Friday, April 29, 2022. The call can be accessed via a live listen-only webcast or as a replay through the Investor Relations section of The Hartford's website at https://ir.thehartford.com. The replay will be accessible approximately one hour after the conclusion of the call and be available along with a transcript of the event for at least one year.

More detailed financial information can be found in The Hartford's Investor Financial Supplement for March 31, 2022, and the first quarter 2022 Financial Results Presentation, both of which are available at https://ir.thehartford.com.

About The Hartford

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

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

HIG-F

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

Media Contacts: Investor Contact:

Michelle Loxton Susan Spivak Bernstein

860-547-7413 860-547-6233

michelle.loxton@thehartford.com susan.spivak@thehartford.com

Matthew Sturdevant

860-547-8664

matthew.sturdevant@thehartford.com


THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATING INCOME STATEMENTS
Three Months Ended March 31, 2022
($ in millions)
	Commercial Lines		Personal Lines		P&C Other Ops		Group Benefits		Hartford Funds		Corporate		Consolidated
Earned premiums	$	2,486	$	720	$	—	$	1,445	$	—	$	—	$	4,651
Fee income	9		8		—		45		287		13		362
Net investment income	333		33		16		123		1		3		509
Other revenue	(2)		17		—		—		—		1		16
Net realized gains (losses)	(91)		(9)		(4)		(16)		(9)		(16)		(145)
Total revenues	2,735		769		12		1,597		279		1		5,393
Benefits, losses, and loss adjustment expenses	1,443		452		—		1,221		—		2		3,118
Amortization of DAC	371		57		—		9		3		—		440
Insurance operating costs and other expenses	436		162		3		367		226		13		1,207


Restructuring and other costs	—		—		—		—		—		5		5
Interest expense	—		—		—		—		—		62		62
Amortization of other intangible assets	7		1		—		10		—		—		18
Total benefits and expenses	2,257		672		3		1,607		229		82		4,850
Income (loss) before income taxes	478		97		9		(10)		50		(81)		543
Income tax expense (benefit)	95		20		1		(4)		8		(22)		98


Net income (loss)	383		77		8		(6)		42		(59)		445
Preferred stock dividends	—		—		—		—		—		5		5
Net Income (loss) available to common stockholders	383		77		8		(6)		42		(64)		440
Adjustments to reconcile net income (loss) available to common stockholders to core earnings (losses)
Net realized losses (gains), excluded from core earnings, before tax	93		9		4		16		9		15		146


Restructuring costs, before tax	—		—		—		—		—		5		5
Integration and other non-recurring M&A costs, before tax	3		—		—		2		—		—		5


Income tax expense (benefit)	(23)		(2)		(1)		(4)		(1)		(4)		(35)

Core earnings (losses)	$	456	$	84	$	11	$	8	$	50	$	(48)	$	561


THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATING INCOME STATEMENTS
Three Months Ended March 31, 2021
($ in millions)
	Commercial Lines	Personal Lines	P&C Other Ops	Group Benefits	Hartford Funds	Corporate	Consolidated
Earned premiums	2,235	734	—	1,374	—	—	4,343
Fee income	9	8	—	44	282	12	355
Net investment income	327	35	16	127	1	3	509
Other revenue	1	19	—	—	—	(8)	12
Net realized gains (losses)	44	7	2	19	2	6	80
Total revenues	2,616	803	18	1,564	285	13	5,299
Benefits, losses, and loss adjustment expenses	1,709	411	33	1,196	—	1	3,350
Amortization of DAC	344	58	—	11	3	—	416
Insurance operating costs and other expenses	403	163	2	339	224	13	1,144

Restructuring and other costs	—	—	—	—	—	11	11
Interest expense	—	—	—	—	—	57	57
Amortization of other intangible assets	7	1	—	10	—	—	18
Total benefits and expenses	2,463	633	35	1,556	227	82	4,996
Income (loss) before income taxes	153	170	(17)	8	58	(69)	303
Income tax expense (benefit)	24	35	(4)	(1)	11	(11)	54


Net income (loss)	129	135	(13)	9	47	(58)	249
Preferred stock dividends	—	—	—	—	—	5	5
Net income (loss) available to common stockholders	129	135	(13)	9	47	(63)	244
Adjustments to reconcile net income (loss) available to common stockholders to core earnings (losses)
Net realized losses (gains), excluded from core earnings, before tax	(43)	(6)	(2)	(18)	(2)	(6)	(77)


Restructuring costs, before tax	—	—	—	—	—	11	11
Integration and other non-recurring M&A costs, before tax	7	—	—	2	—	—	9

Change in deferred gain on retroactive reinsurance, before tax	6	—	—	—	—	—	6
Income tax expense (benefit)	6	2	—	4	—	(2)	10

Core earnings (losses)	105	131	(15)	(3)	45	(60)	203

DISCUSSION OF NON-GAAP FINANCIAL MEASURES

The Hartford uses non-GAAP financial measures in this press release to assist investors in analyzing the company's operating performance for the periods presented herein. Because The Hartford's calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing The Hartford's non-GAAP financial measures to those of other companies. Definitions and calculations of other financial measures used in this press release can be found below and in The Hartford's Investor Financial Supplement for first quarter 2022, which is available on The Hartford's website, https://ir.thehartford.com.

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


	Three Months Ended
	Mar 31 2022		Mar 31 2021		Mar 31 2022		Mar 31 2021		Mar 31 2022		Mar 31 2021
	Consolidated				P&C				Group Benefits
Annualized investment yield, before tax	3.6	%	3.8	%	3.7	%	3.9	%	4.2	%	4.4	%
Impact on annualized investment yield of limited partnerships and other alternative investments, before tax	(0.7)	%	(0.7)	%	(0.8)	%	(0.7)	%	(0.8)	%	(0.9)	%
Annualized investment yield excluding limited partnerships and other alternative investments, before tax	2.9	%	3.1	%	2.9	%	3.2	%	3.4	%	3.5	%

Book value per diluted share (excluding AOCI) - This is a non-GAAP per share measure that is calculated by dividing (a) common stockholders' equity, excluding AOCI, after tax, by (b) common shares outstanding and dilutive potential common shares. The Company provides this measure to enable investors to analyze the amount of the Company's net worth that is primarily attributable to the Company's business operations. The Company believes that excluding AOCI from the numerator is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Book value per diluted share is the most directly comparable U.S. GAAP measure.


	As of
	Mar 31 2022	Mar 31 2021	Change
Book value per diluted share	$46.36	$48.04	(3%)
Per diluted share impact of AOCI	$5.06	$(0.73)	NM
Book value per diluted share (excluding AOCI)	$51.42	$47.31	9%

Core earnings - The Hartford uses the non-GAAP measure core earnings as an important measure of the Company’s operating performance. The Hartford believes that core earnings provides investors with a valuable measure of the performance of the Company’s ongoing businesses because it reveals trends in our insurance and financial services businesses that may be obscured by including the net effect of certain items. Therefore, the following items are excluded from core earnings:

•Certain realized gains and losses - Some realized gains and losses are primarily driven by investment decisions and external economic developments, the nature and timing of which are unrelated to the insurance and underwriting aspects of our business. Accordingly, core earnings excludes the effect of all realized gains and losses that tend to be highly variable from period to period based on capital market conditions. The Hartford believes, however, that some realized gains and losses are integrally related to our insurance operations, so core earnings includes net realized gains and losses such as net periodic settlements on credit derivatives. These net realized gains and losses are directly related to an offsetting item included in the income statement such as net investment income.

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

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

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

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

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

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

•Change in valuation allowance on deferred taxes related to non-core components of before tax income - These changes in valuation allowances are excluded from core earnings because they relate to non-core components of before 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) to core earnings for the quarterly periods ended March 31, 2022 and 2021, is included in this press release. A reconciliation of net income (loss) to core earnings for individual reporting segments can be found in this press release under the heading "The Hartford Financial Services Group, Inc. Consolidating Income Statements" and in The Hartford's Investor Financial Supplement for the quarter ended March 31, 2022.

Core earnings margin - The Hartford uses the non-GAAP measure core earnings margin to evaluate, and believes it is an important measure of, the Group Benefits segment's operating performance. Core earnings margin is calculated by dividing core earnings by revenues, excluding buyouts and realized gains (losses). Net income margin, calculated by dividing net income by revenues, is the most directly comparable U.S. GAAP measure. The Company believes that core earnings margin provides investors with a valuable measure of the performance of Group Benefits because it reveals trends in the business that may be obscured by the effect of buyouts and realized gains (losses) as well as other items excluded in the calculation of core earnings. Core earnings margin should not be considered as a substitute for net income margin and does not reflect the overall profitability of Group Benefits. Therefore, the Company believes it is important for investors to evaluate both core earnings margin and net income margin when reviewing performance. A reconciliation of net income margin to core earnings margin for the quarterly periods ended March 31, 2022 and 2021, is set forth below.


	Three Months Ended
Margin	Mar 31 2022	Mar 31 2021	Change
Net income margin	(0.4)%	0.6%	(1.0)
Adjustments to reconcile net income margin to core earnings margin:
Net realized losses (gains) excluded from core earnings, before tax	1.0%	(1.1)%	2.1
Integration and other non-recurring M&A costs, before tax	0.1%	0.1%	—
Income tax expense (benefit)	(0.2)%	0.2%	(0.4)

Core earnings margin	0.5%	(0.2)%	0.7

Core earnings per diluted share - This non-GAAP per share measure is calculated using the non-GAAP financial measure core earnings rather than the GAAP measure net income. The Company believes that core earnings per diluted share provides investors with a valuable measure of the Company's operating performance for the same reasons applicable to its underlying measure, core earnings. Net income (loss) available to common stockholders per diluted common share is the most directly comparable GAAP measures. Core earnings per diluted share should not be considered as a substitute for net income (loss) available to common stockholders per diluted common share and does not reflect the overall profitability of the Company's business. Therefore, the Company believes that it is useful for investors to evaluate net income (loss) available to common stockholders per diluted common share and core earnings per diluted share when reviewing the Company's performance. A reconciliation of net income (loss) available to common stockholders per diluted common share to core earnings per diluted share for the quarterly periods ended March 31, 2022 and 2021 is provided in the table below.


	Three Months Ended
	Mar 31 2022	Mar 31 2021	Change
PER SHARE DATA
Diluted earnings per common share:
Net income available to common stockholders per share1	$1.30	$0.67	94%


Adjustment made to reconcile net income available to common stockholders per share to core earnings per diluted share:
Net realized losses (gains), excluded from core earnings, before tax	0.43	(0.21)	NM




Restructuring and other costs, before tax	0.01	0.03	(67)%

Integration and other non-recurring M&A costs, before tax	0.01	0.02	(50)%
Change in deferred gain on retroactive reinsurance, before tax	—	0.02	(100)%

Income tax expense (benefit) on items excluded from core earnings	(0.09)	0.03	NM
Core earnings per diluted share	$1.66	$0.56	196%

[1] Net income (loss) available to common stockholders includes dilutive potential common shares

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 quantitative reconciliation of net income ROE to core earnings ROE is not calculable on a forward-looking basis because it is not possible to provide a reliable forecast of realized capital gains and losses, which typically vary substantially from period to period.

A reconciliation of consolidated net income (loss) ROE to Consolidated Core earnings ROE is set forth below.


	Last Twelve Months Ended
	Mar 31 2022	Mar 31 2021
Net income (loss) available to common stockholders ROE	15.4%	10.5%
Adjustments to reconcile net income (loss) available to common stockholders ROE to core earnings ROE:

Net realized losses (gains) excluded from core earnings, before tax	(1.7)%	(1.8)%
Restructuring and other costs, before tax	—%	0.7%




Integration and other non-recurring M&A costs, before tax	0.3%	0.3%

Change in deferred gain on retroactive reinsurance, before tax	1.5%	1.8%
Income tax expense (benefit) on items not included in core earnings	(0.1)%	(0.3)%

Impact of AOCI, excluded from core earnings ROE	(0.6)%	(0.3)%
Core earnings ROE	14.8%	10.9%

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


	Three Months Ended
	Mar 31 2022	Mar 31 2021	Mar 31 2022	Mar 31 2021	Mar 31 2022	Mar 31 2021
	Consolidated		P&C		Group Benefits
Total net investment income	$509	$509	$382	$378	$123	$127
Loss (income) from limited partnerships and other alternative assets	(126)	(112)	(97)	(84)	(29)	(28)
Net investment income excluding limited partnerships and other alternative investments	$383	$397	$285	$294	$94	$99

Underlying combined ratio- This non-GAAP financial measure of underwriting results represents the combined ratio before catastrophes, prior accident year development and current accident year change in loss reserves upon acquisition of a business. Combined ratio is the most directly comparable GAAP measure. The underlying combined ratio represents the combined ratio for the current accident year, excluding the impact of current accident year catastrophes and current accident year change in loss reserves upon acquisition of a business. The Company believes this ratio is an important measure of the trend in profitability since it removes the impact of volatile and unpredictable catastrophe losses and prior accident year loss and loss adjustment expense reserve development. The changes to loss reserves upon acquisition of a business are excluded from underlying combined ratio because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition as such trends are valuable to our investors' ability to assess the Company's financial performance. A reconciliation of the combined ratio to the underlying combined ratio for individual reporting segments can be found in this press release under the heading "Business Results" for Commercial Lines" and "Personal Lines"

Underwriting gain (loss) - The Hartford's management evaluates profitability of the Commercial and Personal Lines segments primarily on the basis of underwriting gain or loss. Underwriting gain (loss) is a before tax non-GAAP measure that represents earned premiums less incurred losses, loss adjustment expenses and underwriting expenses. Net income (loss) is the most directly comparable GAAP measure. Underwriting gain (loss) is influenced significantly by earned premium growth and the adequacy of The Hartford's pricing. Underwriting profitability over time is also greatly influenced by The Hartford's underwriting discipline, as management strives to manage exposure to loss through favorable risk selection and diversification, effective management of claims, use of reinsurance and its ability to manage its expenses. The Hartford believes that the measure underwriting gain (loss) provides investors with a valuable measure of profitability, before tax, derived from underwriting activities, which are managed separately from the Company's investing activities. A reconciliation of net income to underwriting results for the quarterly periods ended March 31, 2022 and 2021, is set forth below.

Underlying underwriting gain (loss) - This non-GAAP measure of underwriting profitability represents underwriting gain (loss) before current accident year catastrophes, PYD and current accident year change in loss reserves upon acquisition of a business. The most directly comparable GAAP measure is net income (loss). The Company believes underlying underwriting gain (loss) is important to understand the Company’s periodic earnings because the volatile and unpredictable nature (i.e., the timing and amount) of catastrophes and prior accident year reserve development could obscure underwriting trends. The changes to loss reserves upon acquisition of a business are also excluded from underlying underwriting gain (loss) because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition as such trends are valuable to our investors' ability to assess the Company's financial performance. A reconciliation of net income (loss) to underlying underwriting gain (loss) for individual reporting segments for the quarterly periods ended March 31, 2022 and 2021, is set forth below.

COMMERCIAL LINES


	Three Months Ended
	Mar 31 2022		Mar 31 2021
Net income	$	383	$	129
Adjustments to reconcile net income to underwriting gain
Net servicing income	(1)		(2)
Net investment income	(333)		(327)
Net realized gains (losses)	91		(44)
Other expense	7		4

Income tax expense	95		24
Underwriting gain (loss)	242		(216)
Adjustments to reconcile underwriting gain (loss) to underlying underwriting gain
Current accident year catastrophes	81		175
Prior accident year development	(33)		238

Underlying underwriting gain	$	290	$	197

PERSONAL LINES


	Three Months Ended
	Mar 31 2022		Mar 31 2021
Net income	$	77	$	135
Adjustments to reconcile net income to underwriting gain
Net servicing income	(4)		(4)
Net investment income	(33)		(35)
Net realized gains (losses)	9		(7)

Income tax expense	20		35
Underwriting gain	69		124
Adjustments to reconcile underwriting gain to underlying underwriting gain
Current accident year catastrophes	17		39
Prior accident year development	(3)		(42)
Underlying underwriting gain	$	83	$	121

PROPERTY & CASUALTY


	Three Months Ended
	Mar 31 2022		Mar 31 2021
Net income	$	468	$	251
Adjustments to reconcile net income to underwriting gain (loss)
Net investment income	(382)		(378)
Net realized gains (losses)	104		(53)
Net servicing and other expense	2		(2)

Income tax expense	116		55
Underwriting gain (loss)	308		(127)
Adjustments to reconcile underwriting gain to underlying underwriting gain
Current accident year catastrophes	98		214
Prior accident year development	(36)		229

Underlying underwriting gain	$	370	$	316

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

Commercial Lines


	Three Months Ended
	Mar 31 2022	Mar 31 2021	Change
Combined Ratio
Combined Ratio	90.3	109.7	(19.4)
Current accident year catastrophes	(3.3)	(7.8)	4.5
Prior accident year development	1.3	(10.6)	11.9
Underlying Combined Ratio	88.3	91.2	(2.9)
COVID-19 losses	—	(1.1)	1.1
Underlying combined ratio before COVID-19 losses	88.3	90.1	(1.8)

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

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

Commercial Lines


	Three Months Ended
	Mar 31 2022	Mar 31 2021	Change
Loss and loss adjustment expense ratio
Total losses and loss adjustment expenses	58.0	76.5	(18.5)
Current accident year catastrophes	(3.3)	(7.8)	4.5
Prior accident year development	1.3	(10.6)	11.9
Underlying loss and loss adjustment expenses	56.1	58.0	(1.9)
COVID-19 losses	—	(1.1)	1.1
Underlying loss and loss adjustment expenses before COVID-19 losses	56.1	56.9	(0.8)

SAFE HARBOR STATEMENT

Certain of the statements contained herein are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “projects,” and similar references to future periods.

Forward-looking statements are based on management's current expectations and assumptions regarding future economic, competitive, legislative and other developments and their potential effect upon The Hartford Financial Services Group, Inc. and its subsidiaries (collectively, the "Company" or "The Hartford"). Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual results could differ materially from expectations depending on the evolution of various factors, including the risks and uncertainties identified below, as well as factors described in such forward-looking statements; or in The Hartford’s 2021 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and our other filings with the Securities and Exchange Commission.

Risks relating to the continued COVID-19 pandemic, including impacts to the Company's insurance and product-related, regulatory/legal, recessionary and other global economic, capital and liquidity and operational risks

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

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

ability to market, distribute and provide insurance products and investment advisory services through current and future distribution channels and advisory firms; the uncertain effects of emerging claim and coverage issues; political instability, politically motivated violence or civil unrest, may increase the frequency and severity of insured losses;

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

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

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

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

Any forward-looking statement made by the Company in this document speaks only as of the date of this release. Factors or events that could cause the Company’s actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise.

INVESTOR FINANCIAL SUPPLEMENT

March 31, 2022

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 27, 2022

Address:

One Hartford Plaza

A.M. Best

Standard & Poor’s

Moody’s

Hartford, CT 06155

Insurance Financial Strength Ratings:

Hartford Fire Insurance Company

A+

Hartford Life and Accident Insurance Company

A+

Navigators Insurance Company

A+

- 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

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

- The 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

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 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 2022			Dec 31 2021			Sept 30 2021			Jun 30 2021			Mar 31 2021
HIGHLIGHTS

Net income	$	445		$	729		$	482		$	905		$	249
Net income available to common stockholders [1]	$	440		$	724		$	476		$	900		$	244
Core earnings*	$	561		$	697		$	442		$	836		$	203
Total revenues	$	5,393		$	5,816		$	5,686		$	5,589		$	5,299
Total assets	$	75,252		$	76,578		$	76,290		$	74,732		$	74,201
PER SHARE AND SHARES DATA
Basic earnings per common share

Net income available to common stockholders	$	1.32		$	2.14		$	1.38		$	2.54		$	0.68
Core earnings*	$	1.69		$	2.06		$	1.28		$	2.36		$	0.57
Diluted earnings per common share

Net income available to common stockholders	$	1.30		$	2.10		$	1.36		$	2.51		$	0.67
Core earnings*	$	1.66		$	2.02		$	1.26		$	2.33		$	0.56
Weighted average common shares outstanding (basic)	332.3			338.8			345.6			353.7			358.2
Dilutive effect of stock compensation	5.0			6.0			5.1			4.8			4.0

Weighted average common shares outstanding and dilutive potential common shares (diluted)	337.3			344.8			350.7			358.5			362.2
Common shares outstanding	330.7			334.9			341.8			349.0			357.5
Book value per common share	$	47.06		$	52.28		$	51.28		$	51.32		$	48.58
Per common share impact of accumulated other comprehensive income [2]	5.14			(0.51)			(0.90)			(1.64)			(0.74)
Book value per common share (excluding AOCI)*	$	52.20		$	51.77		$	50.38		$	49.68		$	47.84
Book value per diluted share	$	46.36		$	51.36		$	50.53		$	50.62		$	48.04
Per diluted share impact of AOCI	5.06			(0.50)			(0.89)			(1.61)			(0.73)
Book value per diluted share (excluding AOCI)*	$	51.42		$	50.86		$	49.64		$	49.01		$	47.31
Common shares outstanding and dilutive potential common shares	335.7			340.9			346.9			353.8			361.5
RETURN ON COMMON STOCKHOLDER'S EQUITY ("ROE") [3]
Net income available to common stockholders' ROE ("Net income ROE")	15.4		%	13.1		%	12.3		%	12.3		%	10.5		%
Core earnings ROE*	14.8		%	12.7		%	12.5		%	13.1		%	10.9		%

[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.

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS


	THREE MONTHS ENDED
	Mar 31 2022		Dec 31 2021		Sept 30 2021		Jun 30 2021		Mar 31 2021
Earned premiums	$	4,651	$	4,631	$	4,565	$	4,460	$	4,343
Fee income	362		381		377		375		355
Net investment income	509		573		650		581		509





Net realized gains (losses)	(145)		212		70		147		80
Other revenues	16		19		24		26		12
Total revenues	5,393		5,816		5,686		5,589		5,299
Benefits, losses and loss adjustment expenses [1]	3,118		3,173		3,420		2,786		3,350
Amortization of deferred acquisition costs ("DAC")	440		428		419		417		416
Insurance operating costs and other expenses	1,207		1,233		1,200		1,202		1,144


Interest expense	62		62		58		57		57
Amortization of other intangible assets	18		18		18		17		18
Restructuring and other costs [2]	5		2		(12)		—		11
Total benefits, losses and expenses	4,850		4,916		5,103		4,479		4,996
Income before income taxes	543		900		583		1,110		303
Income tax expense	98		171		101		205		54


Net income	445		729		482		905		249
Preferred stock dividends	5		5		6		5		5
Net income available to common stockholders	440		724		476		900		244

Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized losses (gains), excluded from core earnings, before tax	146		(212)		(68)		(148)		(77)
Restructuring and other costs, before tax [2]	5		2		(12)		—		11




Integration and other non-recurring M&A costs, before tax [3]	5		5		8		36		9


Change in deferred gain on retroactive reinsurance, before tax	—		173		28		39		6
Income tax expense (benefit) [4]	(35)		5		10		9		10

Core earnings	$	561	$	697	$	442	$	836	$	203

[1]P&C incurred losses in the current accident year arising from the Coronavirus Disease 2019 ("COVID-19") pandemic were $24 for the three months ended March 31, 2021. Incurred losses in Group Benefits from excess mortality, primarily caused by direct and indirect impacts of COVID-19, were $96 for the three months ended March 31, 2022 and were $185 for the three months ended March 31, 2021. COVID-19 related losses (benefits) from short-term disability claims were $9 for the three ended March 31, 2022 and were $13 for the three months ended March 31, 2021. The three months ended March 31, 2021 also included an increase in reserves for sexual molestation and sexual abuse claims, primarily related to claims against the Boy Scouts of America. See note [1] on page 9 for more information.

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

[3]The three months ended March 31, 2022 included Navigators Group acquisition integration costs of $3 and integration costs related to the 2017 acquisition of Aetna's group benefits business of $2. The three month period ended March 31, 2021 included Navigators Group acquisition transaction and integration costs of $7, as well as integration costs related to the 2017 acquisition of Aetna's group benefits business of $2.

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

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

OPERATING RESULTS BY SEGMENT


	THREE MONTHS ENDED
	Mar 31 2022		Dec 31 2021		Sept 30 2021		Jun 30 2021		Mar 31 2021
Net income (loss):
Commercial Lines	$	383	$	702	$	357	$	569	$	129
Personal Lines	77		81		51		118		135
P&C Other Operations	8		(121)		22		17		(13)
Property & Casualty ("P&C")	468		662		430		704		251
Group Benefits	(6)		42		28		170		9
Hartford Funds	42		62		56		52		47
Sub-total	504		766		514		926		307

Corporate	(59)		(37)		(32)		(21)		(58)
Net income	445		729		482		905		249
Preferred stock dividends	5		5		6		5		5
Net income available to common stockholders	$	440	$	724	$	476	$	900	$	244

Core earnings (losses):
Commercial Lines	$	456	$	622	$	344	$	560	$	105
Personal Lines	84		70		48		113		131
P&C Other Operations	11		(2)		20		15		(15)
P&C	551		690		412		688		221
Group Benefits	8		(12)		19		149		(3)
Hartford Funds	50		60		58		51		45
Sub-total	609		738		489		888		263

Corporate	(48)		(41)		(47)		(52)		(60)
Core earnings	$	561	$	697	$	442	$	836	$	203

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATING BALANCE SHEETS


	PROPERTY & CASUALTY				GROUP BENEFITS				HARTFORD FUNDS				CORPORATE [1]				CONSOLIDATED
	Mar 31 2022		Dec 31 2021		Mar 31 2022		Dec 31 2021		Mar 31 2022		Dec 31 2021		Mar 31 2022		Dec 31 2021		Mar 31 2022		Dec 31 2021
Investments
Fixed maturities, available-for-sale ("AFS"), at fair value	$	31,201	$	33,019	$	8,695	$	9,451	$	—	$	—	$	337	$	377	$	40,233	$	42,847
Fixed maturities, at fair value using the fair value option	241		124		47		36		—		—		—		—		288		160
Equity securities, at fair value	1,285		1,410		342		338		70		116		213		230		1,910		2,094
Mortgage loans, net	4,125		3,908		1,574		1,475		—		—		—		—		5,699		5,383
Limited partnerships and other alternative investments	2,925		2,689		734		664		—		—		—		—		3,659		3,353
Other investments	162		165		7		9		56		29		—		12		225		215
Short-term investments	1,682		1,332		389		352		295		251		1,571		1,762		3,937		3,697
Total investments	41,621		42,647		11,788		12,325		421		396		2,121		2,381		55,951		57,749
Cash	198		176		20		15		3		3		2		11		223		205
Restricted cash	72		121		11		11		—		—		—		—		83		132
Premiums receivable and agents’ balances, net	4,191		3,924		596		521		—		—		—		—		4,787		4,445
Reinsurance recoverables, net [2]	6,101		5,997		251		250		—		—		274		276		6,626		6,523
DAC	899		843		35		31		7		7		—		—		941		881

Deferred income taxes	324		(22)		(121)		(228)		2		—		501		520		706		270
Goodwill	778		778		723		723		181		181		229		229		1,911		1,911
Property and equipment, net	856		883		68		71		11		11		60		62		995		1,027
Other intangible assets	397		410		428		438		10		10		—		—		835		858
Other assets	1,474		1,856		222		285		96		112		402		324		2,194		2,577

Total assets	$	56,911	$	57,613	$	14,021	$	14,442	$	731	$	720	$	3,589	$	3,803	$	75,252	$	76,578
Unpaid losses and loss adjustment expenses	$	31,617	$	31,449	$	8,142	$	8,210	$	—	$	—	$	—	$	—	$	39,759	$	39,659
Reserves for future policy benefits [2]	—		—		394		399		—		—		188		197		582		596
Other policyholder funds and benefits payable [2]	—		—		422		426		—		—		255		261		677		687
Unearned premiums	7,511		7,154		39		40		—		—		—		—		7,550		7,194
Debt	—		—		—		—		—		—		4,945		4,944		4,945		4,944
Other liabilities	3,081		3,047		514		355		252		229		1,995		2,024		5,842		5,655

Total liabilities	42,209		41,650		9,511		9,430		252		229		7,383		7,426		59,355		58,735
Common stockholders' equity, excluding AOCI*	14,996		14,845		4,504		4,530		479		491		(2,717)		(2,529)		17,262		17,337
Preferred stock	—		—		—		—		—		—		334		334		334		334
AOCI, net of tax	(294)		1,118		6		482		—		—		(1,411)		(1,428)		(1,699)		172
Total stockholders' equity	14,702		15,963		4,510		5,012		479		491		(3,794)		(3,623)		15,897		17,843
Total liabilities and stockholders' equity	$	56,911	$	57,613	$	14,021	$	14,442	$	731	$	720	$	3,589	$	3,803	$	75,252	$	76,578

[1]Corporate includes fixed maturities, short-term investments, investment sales receivable and cash of $1.7 billion and $1.9 billion as of March 31, 2022 and December 31 2021, 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.

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CAPITAL STRUCTURE


	Mar 31 2022			Dec 31 2021			Sept 30 2021			Jun 30 2021			Mar 31 2021
DEBT
Short-term debt	$	591		$	—		$	—		$	—		$	—
Senior notes	3,855			3,854			3,853			3,264			3,263
Junior subordinated debentures	499			1,090			1,090			1,090			1,090
Total debt	$	4,945		$	4,944		$	4,943		$	4,354		$	4,353
STOCKHOLDERS’ EQUITY
Total stockholders’ equity	$	15,897		$	17,843		$	17,862		$	18,244		$	17,702
Less: Preferred stock	334			334			334			334			334
Less: AOCI	(1,699)			172			307			570			264
Common stockholders' equity, excluding AOCI	$	17,262		$	17,337		$	17,221		$	17,340		$	17,104
CAPITALIZATION
Total capitalization, including AOCI, net of tax	$	20,842		$	22,787		$	22,805		$	22,598		$	22,055
Total capitalization, excluding AOCI, net of tax*	$	22,541		$	22,615		$	22,498		$	22,028		$	21,791
DEBT TO CAPITALIZATION RATIOS
Total debt to capitalization, including AOCI	23.7		%	21.7		%	21.7		%	19.3		%	19.7		%
Total debt to capitalization, excluding AOCI*	21.9		%	21.9		%	22.0		%	19.8		%	20.0		%
Total debt and preferred stock to capitalization, including AOCI	25.3		%	23.2		%	23.1		%	20.7		%	21.3		%
Total debt and preferred stock to capitalization, excluding AOCI*	23.4		%	23.3		%	23.5		%	21.3		%	21.5		%
Total rating agency adjusted debt to capitalization [1] [2]	25.1		%	23.1		%	24.3		%	22.0		%	22.6		%
FIXED CHARGE COVERAGE RATIOS
Total earnings to total fixed charges [3]	8.0:1			10.9:1			9.8:1			10.7:1			4.8:1

[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 $0.5 billion and $0.9 billion as of March 31, 2022 and 2021, respectively.

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

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

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

STATUTORY CAPITAL TO GAAP STOCKHOLDERS’ EQUITY RECONCILIATION

MARCH 31, 2022


	P&C		GROUP BENEFITS
U.S. statutory net income (loss) [1][2]	$	486	$	(11)
U.S. statutory capital [2][3]	$	12,028	$	2,392
U.S. GAAP adjustments [2]:
DAC	865		35
Non-admitted deferred tax assets [4]	168		143
Deferred taxes [5]	(488)		(418)
Goodwill	133		723
Other intangible assets	55		428
Non-admitted assets other than deferred taxes	816		79
Asset valuation and interest maintenance reserve	—		366
Benefit reserves	(100)		180
Unrealized gains (losses) on investments	(345)		60
Deferred gain on retroactive reinsurance agreements [6]	(524)		—
Other, net	1,003		522
U.S. GAAP stockholders’ equity of U.S. insurance entities [2]	13,611		4,510
U.S. GAAP stockholders’ equity of international subsidiaries as well as goodwill and other intangible assets related to the acquisition of Navigators Group	1,091		—
Total U.S. GAAP stockholders’ equity	$	14,702	$	4,510

[1]Statutory net income (loss) is for the three months ended March 31, 2022.

[2]Excludes insurance operations based in the U.K.

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

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

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

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

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)


	AS OF
	Mar 31 2022		Dec 31 2021		Sept 30 2021		Jun 30 2021		Mar 31 2021
Net unrealized gain (loss) on fixed maturities, AFS	$	(266)	$	1,616	$	1,930	$	2,204	$	1,909
Unrealized loss on fixed maturities, AFS with allowance for credit losses ("ACL")	(2)		(2)		(2)		(2)		(2)

Net gains on cash flow hedging instruments	5		6		13		12		17
Total net unrealized gain (loss)	$	(263)	$	1,620	$	1,941	$	2,214	$	1,924
Foreign currency translation adjustments	41		41		42		46		44
Pension and other postretirement plan adjustments	(1,477)		(1,489)		(1,676)		(1,690)		(1,704)
Total AOCI	$	(1,699)	$	172	$	307	$	570	$	264

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PROPERTY & CASUALTY

INCOME STATEMENTS


	THREE MONTHS ENDED
	Mar 31 2022			Dec 31 2021			Sept 30 2021			Jun 30 2021			Mar 31 2021
Written premiums [1]	$	3,516		$	3,180		$	3,297		$	3,254		$	3,218
Change in unearned premium reserve	310			(71)			104			172			249
Earned premiums [1]	3,206			3,251			3,193			3,082			2,969
Fee income	17			17			16			16			17
Losses and loss adjustment expenses
Current accident year before catastrophes [2]	1,833			1,921			1,830			1,786			1,710
Current accident year catastrophes [3]	98			22			300			128			214
Prior accident year development [4]	(36)			29			90			(149)			229
Total losses and loss adjustment expenses	1,895			1,972			2,220			1,765			2,153
Amortization of DAC	428			417			405			404			402
Underwriting expenses	577			608			588			561			544
Amortization of other intangible assets	8			8			8			7			8
Dividends to policyholders	7			7			5			6			6
Underwriting gain (loss)*	308			256			(17)			355			(127)
Net investment income	382			427			487			442			378
Net realized gains (losses)	(104)			136			57			56			53

Net servicing and other income (expense)	(2)			3			2			6			2
Income before income taxes	584			822			529			859			306
Income tax expense	116			160			99			155			55


Net income	468			662			430			704			251
Adjustments to reconcile net income to core earnings:
Net realized losses (gains), excluded from core earnings, before tax	106			(139)			(56)			(56)			(51)

Integration and other non-recurring M&A costs, before tax	3			4			5			4			7

Change in deferred gain on retroactive reinsurance, before tax [4]	—			173			28			39			6
Income tax expense (benefit) [5]	(26)			(10)			5			(3)			8
Core earnings	$	551		$	690		$	412		$	688		$	221
ROE
Net income available to common stockholders [6]	18.4		%	15.3		%	14.0		%	13.8		%	11.5		%
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized losses (gains), excluded from core earnings, before tax	(1.3		%)	(2.4		%)	(1.8		%)	(1.2		%)	(1.4		%)

Integration and other non-recurring M&A costs, before tax	0.1		%	0.2		%	0.2		%	0.2		%	0.3		%

Change in deferred gain on retroactive reinsurance, before tax [4]	2.1		%	2.0		%	2.4		%	2.2		%	2.6		%
Income tax expense (benefit) [5]	(0.3		%)	—		%	(0.3		%)	(0.5		%)	(0.4		%)


Impact of AOCI, excluded from core earnings ROE	0.6		%	1.7		%	1.8		%	2.0		%	0.7		%
Core earnings [6]	19.6		%	16.8		%	16.3		%	16.5		%	13.3		%

[1]The three months ended March 31, 2022 included a provision for reinstatement premium of $11 as a result of estimated ceded incurred losses related to the Ukraine conflict. Refer to note [3] below.

[2]The three months ended March 31, 2021 included $24 of COVID-19 losses and loss adjustment expenses, including $20 for workers' compensation and $4 for financial lines and other.

[3]The three months ended March 31, 2022 included $27 of incurred catastrophe losses net of reinsurance related to the Ukraine conflict, primarily representing losses from political violence and terrorism insurance, including aviation war, and from credit and political risk insurance coverages.

[4]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.

[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.

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PROPERTY & CASUALTY

INCOME STATEMENTS (CONTINUED)


	THREE MONTHS ENDED
	Mar 31 2022		Dec 31 2021		Sept 30 2021		Jun 30 2021		Mar 31 2021
UNFAVORABLE (FAVORABLE) PRIOR ACCIDENT YEAR DEVELOPMENT
Auto liability - Commercial Lines	$	—	$	—	$	9	$	—	$	—
Auto liability - Personal Lines	(5)		(17)		(30)		(20)		(23)
Homeowners	—		1		1		4		(3)

Marine	—		1		(1)		(5)		6
Professional liability	—		5		—		(6)		(1)
Package business	(11)		(25)		(20)		(19)		(27)
General liability [1]	12		3		144		—		307
Bond	—		—		(12)		(14)		—
Assumed Reinsurance	12		(6)		—		(2)		2
Commercial property	(15)		(2)		(4)		(7)		(13)


Net asbestos and environmental reserves	—		—		—		—		—
Workers’ compensation	(45)		(77)		(30)		(43)		(40)

Workers' compensation discount accretion	9		9		8		9		9
Catastrophes	(3)		(56)		—		(82)		(16)
Uncollectible reinsurance	—		4		—		(1)		(9)
Other reserve re-estimates	10		16		(3)		(2)		31

Prior accident year development before change in deferred gain	(36)		(144)		62		(188)		223
Change in deferred gain on retroactive reinsurance included in other liabilities [2]	—		173		28		39		6
Total prior accident year development	$	(36)	$	29	$	90	$	(149)	$	229

[1]The three months ended March 31, 2021 included an increase in reserves for sexual molestation and sexual abuse claims, primarily related to an initial agreement to settle claims against the Boy Scouts of America ("BSA"). On September 14, 2021, the Company announced that it entered into a new agreement-in-principle with the BSA under which The Hartford will pay $787, before tax, for claims associated with policies mostly issued in the 1970s.

[2]For the three months ended March 31, 2021, an increase in deferred gain on retroactive reinsurance of $6 was recognized relating to ceding losses to the Navigators ADC in excess of ceded premium paid and was primarily driven by marine and commercial automobile liability.

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PROPERTY & CASUALTY

UNDERWRITING RATIOS


	THREE MONTHS ENDED
	Mar 31 2022		Dec 31 2021		Sept 30 2021		Jun 30 2021		Mar 31 2021
UNDERWRITING GAIN (LOSS)	$	308	$	256	$	(17)	$	355	$	(127)
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1]	57.2		59.1		57.3		57.9		57.6
Current accident year catastrophes	3.1		0.7		9.4		4.2		7.2
Prior accident year development	(1.1)		0.9		2.8		(4.8)		7.7
Total losses and loss adjustment expenses	59.1		60.7		69.5		57.3		72.5
Expenses [2]	31.1		31.3		30.8		31.0		31.6
Policyholder dividends	0.2		0.2		0.2		0.2		0.2
Combined ratio	90.4		92.1		100.5		88.5		104.3
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development	(2.0)		(1.6)		(12.2)		0.6		(14.9)

Underlying combined ratio *	88.5		90.6		88.3		89.2		89.4

[1]The three months ended March 31, 2021 included 0.8 points of COVID-19 losses. See [2] on page 8.

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

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

INCOME STATEMENTS


	THREE MONTHS ENDED
	Mar 31 2022		Dec 31 2021		Sept 30 2021		Jun 30 2021		Mar 31 2021
Written premiums [1]	$	2,809	$	2,512	$	2,532	$	2,494	$	2,503
Change in unearned premium reserve	323		(1)		83		150		268
Earned premiums [1]	2,486		2,513		2,449		2,344		2,235
Fee income	9		9		8		8		9
Losses and loss adjustment expenses
Current accident year before catastrophes [2]	1,395		1,421		1,351		1,339		1,296
Current accident year catastrophes [3]	81		6		222		93		175
Prior accident year development	(33)		(114)		122		(105)		238
Total losses and loss adjustment expenses	1,443		1,313		1,695		1,327		1,709
Amortization of DAC	371		360		348		346		344
Underwriting expenses	425		447		432		405		394
Amortization of other intangible assets	7		8		7		7		7
Dividends to policyholders	7		7		5		6		6
Underwriting gain (loss)	242		387		(30)		261		(216)
Net servicing income	1		2		2		7		2
Net investment income	333		372		421		382		327
Net realized gains (losses)	(91)		118		51		47		44

Other expenses	(7)		(3)		(5)		(6)		(4)
Income before income taxes	478		876		439		691		153
Income tax expense	95		174		82		122		24


Net income	383		702		357		569		129
Adjustments to reconcile net income to core earnings:
Net realized losses (gains), excluded from core earnings, before tax	93		(120)		(50)		(47)		(43)
Integration and other non-recurring M&A costs, before tax [4]	3		4		5		4		7

Change in deferred gain on retroactive reinsurance, before tax	—		18		28		39		6

Income tax expense (benefit) [5]	(23)		18		4		(5)		6
Core earnings	$	456	$	622	$	344	$	560	$	105

[1]Refer to [1] on page 8 for impact related to Ukraine conflict.

[2]Refer to [2] on page 8 for impact related to COVID-19.

[3]Refer to [3] on page 8 for information about catastrophe losses related to the Ukraine conflict.

[4]Includes Navigators Group integration costs.

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

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

INCOME STATEMENTS (CONTINUED)

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


	THREE MONTHS ENDED
	Mar 31 2022		Dec 31 2021		Sept 30 2021		Jun 30 2021		Mar 31 2021
Auto liability	$	—	$	—	$	9	$	—	$	—

Professional liability	—		5		—		(6)		(1)
Package business	(11)		(25)		(20)		(19)		(27)
General liability [1]	12		3		144		—		307
Marine	—		1		(1)		(5)		6
Bond	—		—		(12)		(14)		—
Assumed Reinsurance	12		(6)		—		(2)		2
Commercial property	(15)		(2)		(4)		(7)		(13)


Workers’ compensation	(45)		(77)		(30)		(43)		(40)

Workers' compensation discount accretion	9		9		8		9		9
Catastrophes	(3)		(40)		—		(53)		(4)
Uncollectible reinsurance	—		—		—		—		(5)
Other reserve re-estimates	8		—		—		(4)		(2)


Prior accident year development before change in deferred gain	(33)		(132)		94		(144)		232

Change in deferred gain on retroactive reinsurance included in other liabilities [2]	—		18		28		39		6
Total prior accident year development	$	(33)	$	(114)	$	122	$	(105)	$	238

[1]See [1] on page 9 for discussion related to general liability prior year development for the three months ended March 31, 2021.

[2]The change in deferred gain on retroactive reinsurance relates to ceding losses to the Navigators ADC in excess of ceded premium paid resulting in a deferred reinsurance benefit.

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

UNDERWRITING RATIOS


	THREE MONTHS ENDED
	Mar 31 2022		Dec 31 2021		Sept 30 2021		Jun 30 2021		Mar 31 2021
UNDERWRITING GAIN (LOSS)	$	242	$	387	$	(30)	$	261	$	(216)
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1]	56.1		56.5		55.2		57.1		58.0
Current accident year catastrophes	3.3		0.2		9.1		4.0		7.8
Prior accident year development	(1.3)		(4.5)		5.0		(4.5)		10.6
Total losses and loss adjustment expenses	58.0		52.2		69.2		56.6		76.5
Expenses [2]	31.9		32.1		31.8		32.0		32.9
Policyholder dividends	0.3		0.3		0.2		0.3		0.3
Combined ratio [3]	90.3		84.6		101.2		88.9		109.7
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development	(2.0)		4.3		(14.1)		0.5		(18.4)

Underlying combined ratio	88.3		88.9		87.2		89.4		91.2

COMBINED RATIOS BY LINE OF BUSINESS
SMALL COMMERCIAL
Combined ratio	82.9		79.0		84.5		83.6		95.4
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes	(1.9)		(0.2)		(5.0)		(3.8)		(12.1)
Prior accident year development	4.9		9.2		4.4		7.2		5.0

Underlying combined ratio	85.9		88.0		83.9		87.0		88.3
MIDDLE & LARGE COMMERCIAL
Combined ratio	94.6		83.5		108.0		92.9		98.9
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes	(2.3)		2.1		(16.3)		(5.8)		(7.0)
Prior accident year development	(0.9)		4.4		(0.4)		4.4		3.3

Underlying combined ratio	91.5		90.0		91.4		91.5		95.3
GLOBAL SPECIALTY
Combined ratio [3]	96.9		94.8		97.1		91.9		92.4
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes	(6.9)		(3.5)		(6.2)		(1.8)		(2.2)
Prior accident year development	(1.8)		(2.5)		(4.0)		0.1		(0.3)

Underlying combined ratio	88.2		88.8		86.9		90.3		89.9

[1]The three months ended March 31, 2021 included COVID-19 losses of 1.1 points. See [2] on page 8.

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

[3]The three months ended March 31, 2021 included a change in deferred gain on retroactive reinsurance related to the Navigators ADC of $6 and 0.3 points of the Commercial Lines combined ratio and 1.1 points of the global specialty combined ratio.

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

SUPPLEMENTAL DATA


	THREE MONTHS ENDED
	Mar 31 2022			Dec 31 2021			Sept 30 2021			Jun 30 2021			Mar 31 2021
WRITTEN PREMIUMS
Small Commercial	$	1,180		$	1,025		$	1,012		$	977		$	1,053
Middle & Large Commercial	853			847			884			817			775
Middle Market	724			722			765			720			662
National Accounts and Other	129			125			119			97			113
Global Specialty [1]	764			629			625			689			665
U.S.	466			457			452			466			421
International	91			109			81			113			110
Global Re	207			63			92			110			134
Other	12			11			11			11			10
Total	$	2,809		$	2,512		$	2,532		$	2,494		$	2,503
EARNED PREMIUMS
Small Commercial	$	1,034		$	1,043		$	1,015		$	956		$	916
Middle & Large Commercial	828			840			820			788			752
Middle Market	717			725			704			682			653
National Accounts and Other	111			115			116			106			99
Global Specialty [1]	613			619			604			589			556
U.S.	426			434			421			406			386
International	87			97			95			99			102
Global Re	100			88			88			84			68
Other	11			11			10			11			11
Total	$	2,486		$	2,513		$	2,449		$	2,344		$	2,235

COMMERCIAL LINES STATISTICAL PREMIUM INFORMATION
Small Commercial
Net New Business Premium	$	186		$	162		$	165		$	170		$	176
Renewal Written Price Increases	2.9		%	3.5		%	3.3		%	3.1		%	2.4		%


Policy Count Retention [2]	86		%	85		%	84		%	84		%	84		%

Policies in Force (in thousands)	1,378			1,366			1,352			1,329			1,304
Middle Market [3]
Net New Business Premium	$	120		$	124		$	139		$	147		$	122
Renewal Written Price Increases	4.8		%	5.7		%	5.8		%	6.2		%	6.0		%


Policy Count Retention [2]	84		%	83		%	84		%	82		%	80		%


Global Specialty
Gross New Business Premium [4]	$	206		$	225		$	234		$	237		$	216
Renewal Written Price Increases [5]	8.3		%	9.2		%	10.7		%	13.5		%	17.2		%

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

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

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

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

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

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

INCOME STATEMENTS


	THREE MONTHS ENDED
	Mar 31 2022		Dec 31 2021		Sept 30 2021		Jun 30 2021		Mar 31 2021
Written premiums	$	707	$	668	$	765	$	760	$	715
Change in unearned premium reserve	(13)		(70)		21		22		(19)
Earned premiums	720		738		744		738		734
Fee income	8		8		8		8		8
Losses and loss adjustment expenses
Current accident year before catastrophes	438		500		479		447		414
Current accident year catastrophes	17		16		78		35		39
Prior accident year development	(3)		(31)		(27)		(44)		(42)
Total losses and loss adjustment expenses	452		485		530		438		411
Amortization of DAC	57		57		57		58		58
Underwriting expenses	149		159		154		154		148
Amortization of other intangible assets	1		—		1		—		1
Underwriting gain	69		45		10		96		124
Net servicing income	4		4		6		5		4
Net investment income	33		38		44		40		35
Net realized gains (losses)	(9)		12		4		6		7
Other income (expense)	—		1		(1)		—		—
Income before income taxes	97		100		63		147		170
Income tax expense	20		19		12		29		35
Net income	77		81		51		118		135
Adjustments to reconcile net income to core earnings:
Net realized losses (gains), excluded from core earnings, before tax	9		(13)		(4)		(6)		(6)
Income tax expense (benefit) [1]	(2)		2		1		1		2
Core earnings	$	84	$	70	$	48	$	113	$	131

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

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 2022		Dec 31 2021		Sept 30 2021		Jun 30 2021		Mar 31 2021
Auto liability	$	(5)	$	(17)	$	(30)	$	(20)	$	(23)
Homeowners	—		1		1		4		(3)

Catastrophes	—		(16)		—		(29)		(12)
Other reserve re-estimates, net	2		1		2		1		(4)

Total prior accident year development	$	(3)	$	(31)	$	(27)	$	(44)	$	(42)

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

UNDERWRITING RATIOS


	THREE MONTHS ENDED
	Mar 31 2022		Dec 31 2021		Sept 30 2021		Jun 30 2021		Mar 31 2021
UNDERWRITING GAIN	$	69	$	45	$	10	$	96	$	124
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes	60.8		67.8		64.4		60.6		56.4
Current accident year catastrophes	2.4		2.2		10.5		4.7		5.3
Prior accident year development	(0.4)		(4.2)		(3.6)		(6.0)		(5.7)
Total losses and loss adjustment expenses	62.8		65.7		71.2		59.3		56.0
Expenses	27.6		28.2		27.4		27.6		27.1
Combined ratio	90.4		93.9		98.7		87.0		83.1
Adjustment to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development	(2.0)		2.0		(6.9)		1.3		0.4
Underlying combined ratio	88.5		95.9		91.8		88.2		83.5
PRODUCT
Automobile
Combined ratio	92.8		102.4		96.5		89.2		83.5
Adjustment to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes	(0.3)		(0.4)		(2.3)		(1.3)		(0.5)
Prior accident year development	0.9		3.4		5.5		4.2		3.3
Underlying combined ratio	93.3		105.4		99.7		92.1		86.3
Homeowners
Combined ratio	85.2		74.8		103.4		82.0		86.8
Adjustment to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes	(7.0)		(6.0)		(28.3)		(12.8)		(15.9)
Prior accident year development	(0.8)		6.2		(0.5)		10.0		6.3
Underlying combined ratio	77.4		75.1		74.6		79.2		77.2

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

SUPPLEMENTAL DATA


	THREE MONTHS ENDED
	Mar 31 2022		Dec 31 2021		Sept 30 2021		Jun 30 2021		Mar 31 2021
DISTRIBUTION
WRITTEN PREMIUMS
AARP Direct	$	610	$	566	$	659	$	653	$	612
AARP Agency	48		50		51		51		51
Other Agency	43		45		49		50		45
Other	6		7		6		6		7
Total	$	707	$	668	$	765	$	760	$	715
EARNED PREMIUMS
AARP Direct	$	617	$	631	$	635	$	629	$	623
AARP Agency	50		52		52		53		53
Other Agency	47		48		49		50		51
Other	6		7		8		6		7
Total	$	720	$	738	$	744	$	738	$	734
PRODUCT LINE
WRITTEN PREMIUMS
Automobile	$	497	$	458	$	516	$	515	$	508
Homeowners	210		210		249		245		207
Total	$	707	$	668	$	765	$	760	$	715
EARNED PREMIUMS
Automobile	$	493	$	508	$	511	$	509	$	507
Homeowners	227		230		233		229		227
Total	$	720	$	738	$	744	$	738	$	734

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

SUPPLEMENTAL DATA (CONTINUED)


	THREE MONTHS ENDED
	Mar 31 2022			Dec 31 2021			Sept 30 2021			Jun 30 2021			Mar 31 2021
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
Net New Business Premium
Automobile	$	58		$	52		$	58		$	56		$	53
Homeowners	$	15		$	14		$	17		$	16		$	13
Renewal Written Price Increases
Automobile	2.9		%	2.7		%	2.1		%	2.3		%	1.8		%
Homeowners	8.8		%	8.1		%	8.1		%	8.5		%	9.4		%



Policy Count Retention [1]
Automobile	84		%	84		%	84		%	85		%	85		%
Homeowners	84		%	84		%	84		%	85		%	85		%






Policies in Force (in thousands)
Automobile	1,315			1,317			1,328			1,339			1,357
Homeowners	765			773			786			799			815

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

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

P&C OTHER OPERATIONS

INCOME STATEMENTS


	THREE MONTHS ENDED
	Mar 31 2022		Dec 31 2021		Sept 30 2021		Jun 30 2021		Mar 31 2021



Losses and loss adjustment expenses

Prior accident year development	$	—	$	174	$	(5)	$	—	$	33
Total losses and loss adjustment expenses	—		174		(5)		—		33
Underwriting expenses	3		2		2		2		2
Underwriting gain (loss)	(3)		(176)		3		(2)		(35)

Net investment income	16		17		22		20		16
Net realized gains (losses)	(4)		6		2		3		2



Other income	—		(1)		—		—		—
Income (loss) before income taxes	9		(154)		27		21		(17)
Income tax expense (benefit)	1		(33)		5		4		(4)
Net income (loss)	8		(121)		22		17		(13)

Adjustments to reconcile net income (loss) to core earnings (losses):
Net realized losses (gains), excluded from core earnings, before tax	4		(6)		(2)		(3)		(2)

Change in deferred gain on retroactive reinsurance, before tax	—		155		—		—		—
Income tax expense (benefit) [1]	(1)		(30)		—		1		—
Core earnings (losses)	$	11	$	(2)	$	20	$	15	$	(15)

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

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

GROUP BENEFITS

INCOME STATEMENTS


	THREE MONTHS ENDED
	Mar 31 2022			Dec 31 2021			Sept 30 2021			Jun 30 2021			Mar 31 2021
Earned premiums	$	1,445		$	1,380		$	1,372		$	1,378		$	1,374
Fee income	45			47			43			49			44
Net investment income	123			128			159			136			127
Net realized gains (losses)	(16)			70			13			28			19
Total revenues	1,597			1,625			1,587			1,591			1,564
Benefits, losses and loss adjustment expenses [1]	1,221			1,198			1,199			1,019			1,196
Amortization of DAC	9			8			11			10			11
Insurance operating costs and other expenses	367			358			336			340			339
Amortization of other intangible assets	10			10			10			10			10
Total benefits, losses and expenses	1,607			1,574			1,556			1,379			1,556
Income before income taxes	(10)			51			31			212			8
Income tax expense (benefit)	(4)			9			3			42			(1)
Net income (loss)	(6)			42			28			170			9
Adjustments to reconcile net income (loss) to core earnings (losses):
Net realized losses (gains), excluded from core earnings, before tax	16			(70)			(13)			(28)			(18)
Integration and other non-recurring M&A costs, before tax	2			1			1			2			2
Income tax expense (benefit) [2]	(4)			15			3			5			4
Core earnings (losses)	$	8		$	(12)		$	19		$	149		$	(3)
Margin
Net income margin	(0.4		%)	2.6		%	1.8		%	10.7		%	0.6		%
Core earnings margin*	0.5		%	(0.8		%)	1.2		%	9.5		%	(0.2		%)
ROE
Net income available to common stockholders [3]	5.1		%	5.0		%	5.4		%	7.6		%	6.4		%
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized losses (gains), excluded from core earnings, before tax	(2.6		%)	(3.2		%)	(1.9		%)	(1.8		%)	(1.2		%)
Integration and other non-recurring M&A costs, before tax	0.2		%	0.1		%	0.2		%	0.3		%	0.4		%
Income tax expense (benefit) [2]	0.5		%	0.7		%	0.4		%	0.3		%	0.2		%
Impact of AOCI, excluded from core earnings ROE	0.3		%	0.5		%	0.8		%	1.1		%	0.5		%
Core earnings [3]	3.5		%	3.1		%	4.9		%	7.5		%	6.3		%

[1]Includes incurred losses from excess mortality, primarily caused by direct and indirect impacts of COVID-19, of $96 and $185, respectively, for the three months ended March 31, 2022 and 2021. The $96 of excess mortality losses in the first quarter of 2022 included $122 of losses with dates of loss in the first quarter and a $26 net decrease of estimated losses from prior accident years. Also includes COVID-19 related losses from short-term disability of $9 and $13, respectively, for the three months ended March 31, 2022 and 2021

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

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

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

GROUP BENEFITS

SUPPLEMENTAL DATA


	THREE MONTHS ENDED
	Mar 31 2022			Dec 31 2021			Sept 30 2021			Jun 30 2021			Mar 31 2021
PREMIUMS
Fully insured ongoing premiums
Group disability	$	754		$	708		$	702		$	696		$	693
Group life	597			591			591			603			602
Other [1]	87			81			79			79			77
Total fully insured ongoing premiums	1,438			1,380			1,372			1,378			1,372
Total buyouts [2]	7			—			—			—			2
Total premiums	$	1,445		$	1,380		$	1,372		$	1,378		$	1,374
SALES (GROSS ANNUALIZED NEW PREMIUMS)
Fully insured ongoing sales
Group disability	$	222		$	35		$	35		$	44		$	321
Group life	125			23			31			43			151
Other [1]	42			9			16			12			40
Total fully insured ongoing sales	389			67			82			99			512
Total buyouts [2]	7			—			—			—			2
Total sales	$	396		$	67		$	82		$	99		$	514
RATIOS, EXCLUDING BUYOUTS
Group disability loss ratio [3]	73.2		%	71.6		%	68.4		%	64.2		%	68.4		%
Group life loss ratio [4]	98.4		%	105.0		%	110.9		%	83.6		%	108.3		%
Total loss ratio	81.9		%	84.0		%	84.7		%	71.4		%	84.3		%
Expense ratio [5]	25.9		%	26.3		%	25.2		%	25.1		%	25.3		%

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

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

[3]Includes losses (benefits) on short-term disability claims related to COVID-19 of 1.1 points and 1.8 points, respectively, for the three months ended March 31, 2022 and 2021.

[4]Includes incurred losses from excess mortality, primarily caused by direct and indirect impacts of COVID-19, of 16.1 points and 30.7 points, respectively, for the three months ended March 31, 2022 and 2021.

[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.

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

HARTFORD FUNDS

INCOME STATEMENTS


	THREE MONTHS ENDED
	Mar 31 2022			Dec 31 2021			Sept 30 2021			Jun 30 2021			Mar 31 2021
Investment management fees	$	216		$	230		$	229		$	221		$	208
Shareholder servicing fees	25			25			26			25			24
Other revenue	47			52			53			50			51
Net realized gains (losses)	(9)			3			(3)			2			2
Total revenues	279			310			305			298			285
Sub-advisory expense	78			82			83			81			75
Employee compensation and benefits	36			32			31			33			37
Distribution and service	87			93			94			92			90
General, administrative and other	28			25			27			25			25

Total expenses	229			232			235			231			227
Income before income taxes	50			78			70			67			58
Income tax expense	8			16			14			15			11
Net income	42			62			56			52			47
Adjustments to reconcile net income to core earnings:
Net realized losses (gains), excluded from core earnings, before tax	9			(3)			3			(2)			(2)
Income tax expense (benefit) [1]	(1)			1			(1)			1			—
Core earnings	$	50		$	60		$	58		$	51		$	45
Daily average Hartford Funds AUM	$	150,131		$	156,533		$	155,041		$	150,527		$	143,164
Return on assets (bps, net of tax) [2]
Net income	11.2			15.8			14.4			13.8			13.1
Core earnings*	13.3			15.3			15.0			13.6			12.6
ROE
Net income available to common stockholders [3]	58.0		%	57.8		%	56.9		%	54.3		%	52.9		%

Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized losses (gains) excluded from core earnings, before tax	2.0		%	(1.1		%)	(2.0		%)	(4.3		%)	(6.3		%)
Income tax expense (benefit) [1]	—		%	0.3		%	0.3		%	0.9		%	1.2		%
Impact of AOCI, excluded from core earnings ROE	(0.6		%)	0.4		%	0.4		%	0.3		%	(0.2		%)
Core earnings [3]	59.4		%	57.4		%	55.6		%	51.2		%	47.6		%

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

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

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 2022		Dec 31 2021		Sept 30 2021		Jun 30 2021		Mar 31 2021
Equity Funds
Beginning balance	$	95,703	$	91,600	$	93,448	$	87,456	$	82,123
Sales	6,856		4,840		4,757		5,927		6,202
Redemptions	(6,965)		(4,938)		(5,076)		(4,461)		(5,191)
Net flows	(109)		(98)		(319)		1,466		1,011
Change in market value and other	(6,312)		4,201		(1,529)		4,526		4,322
Ending balance	$	89,282	$	95,703	$	91,600	$	93,448	$	87,456
Fixed Income Funds
Beginning balance	$	20,113	$	19,632	$	18,913	$	17,705	$	17,034
Sales	1,900		1,965		1,708		2,098		2,258
Redemptions	(2,254)		(1,498)		(996)		(1,121)		(1,486)
Net flows	(354)		467		712		977		772
Change in market value and other	(870)		14		7		231		(101)
Ending balance	$	18,889	$	20,113	$	19,632	$	18,913	$	17,705
Multi-Strategy Investments Funds [1]
Beginning balance	$	23,610	$	22,925	$	23,039	$	22,170	$	22,645
Sales	722		656		621		629		738
Redemptions	(826)		(711)		(706)		(718)		(1,751)
Net flows	(104)		(55)		(85)		(89)		(1,013)
Change in market value and other	(903)		740		(29)		958		538
Ending balance	$	22,603	$	23,610	$	22,925	$	23,039	$	22,170
Exchange-Traded Funds ("ETF") AUM
Beginning balance	$	3,206	$	3,129	$	3,111	$	2,923	$	2,825
Net flows	143		44		(13)		86		4
Change in market value and other	(138)		33		31		102		94
Ending balance	$	3,211	$	3,206	$	3,129	$	3,111	$	2,923
Mutual Fund and ETF AUM
Beginning balance	$	142,632	$	137,286	$	138,511	$	130,254	$	124,627
Sales - mutual fund	9,478		7,461		7,086		8,654		9,198
Redemptions - mutual fund	(10,045)		(7,147)		(6,778)		(6,300)		(8,428)
Net flows - ETF	143		44		(13)		86		4
Net flows - mutual fund and ETF	(424)		358		295		2,440		774
Change in market value and other	(8,223)		4,988		(1,520)		5,817		4,853
Ending balance	133,985		142,632		137,286		138,511		130,254
Talcott Resolution life and annuity separate account AUM [2]	14,061		15,263		14,800		15,282		14,944
Hartford Funds AUM	$	148,046	$	157,895	$	152,086	$	153,793	$	145,198

[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.

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CORPORATE

INCOME STATEMENTS


	THREE MONTHS ENDED
	Mar 31 2022		Dec 31 2021		Sept 30 2021		Jun 30 2021		Mar 31 2021
Fee income [1]	$	13	$	12	$	12	$	14	$	12


Other revenue (loss) [2]	1		—		—		(2)		(8)
Net investment income	3		16		2		3		3
Net realized gains (losses)	(16)		3		3		61		6
Total revenues	1		31		17		76		13
Benefits, losses and loss adjustment expenses [3]	2		3		1		2		1


Insurance operating costs and other expenses [1]	13		15		17		45		13



Interest expense	62		62		58		57		57

Restructuring and other costs	5		2		(12)		—		11
Total expenses	82		82		64		104		82
Loss before income taxes	(81)		(51)		(47)		(28)		(69)
Income tax benefit	(22)		(14)		(15)		(7)		(11)


Net loss	(59)		(37)		(32)		(21)		(58)
Preferred stock dividends	5		5		6		5		5
Net loss available to common stockholders	(64)		(42)		(38)		(26)		(63)
Adjustments to reconcile net loss available to common stockholders to core losses:
Net realized losses (gains), excluded from core earnings, before tax	15		—		(2)		(62)		(6)
Integration and other non-recurring M&A costs, before tax	—		—		2		30		—
Restructuring and other costs, before tax	5		2		(12)		—		11





Income tax expense (benefit) [4]	(4)		(1)		3		6		(2)

Core losses	$	(48)	$	(41)	$	(47)	$	(52)	$	(60)

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

[2]The three months ended March 31, 2021 included $8 of loss before tax from the Company's former retained 9.7% equity interest in Hopmeadow Holdings LP, the limited partnership that acquired Talcott Resolution in May 2018 (collectively referred to as "Talcott Resolution"). The Company sold its retained equity interest on June 30, 2021.

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

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

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTMENT INCOME BEFORE TAX

CONSOLIDATED


	THREE MONTHS ENDED
	Mar 31 2022			Dec 31 2021			Sept 30 2021			Jun 30 2021			Mar 31 2021
Net Investment Income (Loss)
Fixed maturities [1]
Taxable	$	275		$	270		$	269		$	273		$	279
Tax-exempt	56			60			63			65			70
Total fixed maturities	331			330			332			338			349
Equity securities	12			30			23			10			10
Mortgage loans	50			48			45			45			43
Limited partnerships and other alternative investments [2]	126			170			259			191			112
Other [3]	9			15			11			18			14
Subtotal	528			593			670			602			528
Investment expense	(19)			(20)			(20)			(21)			(19)
Total net investment income	$	509		$	573		$	650		$	581		$	509
Annualized investment yield, before tax [4]	3.6		%	4.1		%	4.8		%	4.4		%	3.8		%
Annualized limited partnerships and other alternative investment yield, before tax [4]	14.6		%	22.1		%	39.6		%	32.5		%	21.1		%
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]*	2.9		%	3.1		%	3.0		%	3.1		%	3.1		%
Annualized investment yield, net of tax [4]	2.9		%	3.4		%	3.9		%	3.6		%	3.1		%
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]*	2.4		%	2.5		%	2.5		%	2.5		%	2.6		%
Average reinvestment rate [5]	3.3		%	2.9		%	2.6		%	2.5		%	2.3		%
Average sales/maturities yield [6]	3.0		%	3.3		%	3.1		%	2.9		%	2.9		%
Portfolio duration (in years) [7]	4.4			4.3			4.5			4.6			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 private equity, fixed income, hedge funds and public equity.

[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 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.

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTMENT INCOME BEFORE TAX

PROPERTY & CASUALTY


	THREE MONTHS ENDED
	Mar 31 2022			Dec 31 2021			Sept 30 2021			Jun 30 2021			Mar 31 2021
Net Investment Income (Loss)
Fixed maturities [1]
Taxable	$	207		$	202		$	200		$	203		$	207
Tax-exempt	41			44			47			49			52
Total fixed maturities	248			246			247			252			259
Equity securities	9			11			18			8			7
Mortgage loans	36			35			31			32			30
Limited partnerships and other alternative investments [2]	97			137			198			151			84
Other [3]	6			13			8			15			12
Subtotal	396			442			502			458			392
Investment expense	(14)			(15)			(15)			(16)			(14)
Total net investment income	$	382		$	427		$	487		$	442		$	378
Annualized investment yield, before tax [4]	3.7		%	4.2		%	4.8		%	4.5		%	3.9		%
Annualized limited partnerships and other alternative investment yield, before tax [4]	14.1		%	22.0		%	37.3		%	31.4		%	19.2		%
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]	2.9		%	3.0		%	3.0		%	3.1		%	3.2		%
Annualized investment yield, net of tax [4]	3.0		%	3.4		%	4.0		%	3.7		%	3.2		%
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]	2.4		%	2.5		%	2.5		%	2.6		%	2.6		%
Average reinvestment rate [5]	3.2		%	2.8		%	2.6		%	2.5		%	2.3		%
Average sales/maturities yield [6]	2.9		%	3.1		%	3.0		%	2.9		%	2.8		%
Portfolio duration (in years) [7]	4.3			4.3			4.5			4.5			4.7

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

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTMENT INCOME BEFORE TAX

GROUP BENEFITS


	THREE MONTHS ENDED
	Mar 31 2022			Dec 31 2021			Sept 30 2021			Jun 30 2021			Mar 31 2021
Net Investment Income (Loss)
Fixed maturities [1]
Taxable	$	67		$	67		$	69		$	69		$	71
Tax-exempt	13			14			14			15			16
Total fixed maturities	80			81			83			84			87
Equity securities	2			3			4			1			2
Mortgage loans	14			13			14			13			13
Limited partnerships and other alternative investments [2]	29			33			61			40			28
Other [3]	3			3			2			3			2
Subtotal	128			133			164			141			132
Investment expense	(5)			(5)			(5)			(5)			(5)
Total net investment income	$	123		$	128		$	159		$	136		$	127
Annualized investment yield, before tax [4]	4.2		%	4.4		%	5.4		%	4.7		%	4.4		%
Annualized limited partnerships and other alternative investment yield, before tax [4]	16.7		%	22.3		%	49.7		%	37.1		%	29.8		%
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]	3.4		%	3.4		%	3.5		%	3.5		%	3.5		%
Annualized investment yield, net of tax [4]	3.4		%	3.5		%	4.4		%	3.8		%	3.5		%
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]	2.8		%	2.8		%	2.8		%	2.8		%	2.9		%
Average reinvestment rate [5]	3.6		%	3.1		%	2.9		%	2.7		%	2.8		%
Average sales/maturities yield [6]	3.3		%	3.7		%	3.5		%	3.4		%	3.3		%
Portfolio duration (in years) [7]	5.2			5.4			5.6			5.7			5.8

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

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NET INVESTMENT INCOME

CONSOLIDATED


	THREE MONTHS ENDED
Net Investment Income by Segment	Mar 31 2022		Dec 31 2021		Sept 30 2021		Jun 30 2021		Mar 31 2021
Net Investment Income
Commercial Lines	$	333	$	372	$	421	$	382	$	327
Personal Lines	33		38		44		40		35
P&C Other Operations	16		17		22		20		16
Total Property & Casualty	382		427		487		442		378
Group Benefits	123		128		159		136		127
Hartford Funds	1		2		2		—		1
Corporate	3		16		2		3		3
Total net investment income by segment	$	509	$	573	$	650	$	581	$	509


	THREE MONTHS ENDED
Net Investment Income From Limited Partnerships and Other Alternative Investments	Mar 31 2022		Dec 31 2021		Sept 30 2021		Jun 30 2021		Mar 31 2021
Total Property & Casualty	$	97	$	137	$	198	$	151	$	84
Group Benefits	29		33		61		40		28
Total net investment income from limited partnerships and other alternative investments [1]	$	126	$	170	$	259	$	191	$	112

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

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMPONENTS OF NET REALIZED GAINS (LOSSES)

CONSOLIDATED


	THREE MONTHS ENDED
	Mar 31 2022		Dec 31 2021		Sept 30 2021		Jun 30 2021		Mar 31 2021
Net Realized Gains (Losses)
Gross gains on sales of fixed maturities	$	23	$	157	$	63	$	68	$	31
Gross losses on sales of fixed maturities	(95)		(35)		(8)		(15)		(31)
Equity securities [1]	(107)		93		3		88		43
Net credit losses on fixed maturities, AFS	(12)		—		—		—		4
Change in ACL on mortgage loans	(2)		(3)		(2)		10		4
Intent-to-sell impairments	(3)		—		—		—		—


Other net gains (losses) [2]	51		—		14		(4)		29



Total net realized gains (losses)	(145)		212		70		147		80
Net realized gains, included in core earnings, before tax	(1)		—		(2)		1		(3)
Total net gains (losses) excluded from core earnings, before tax	(146)		212		68		148		77
Income tax benefit (expense) related to net realized gains (losses) excluded from core earnings	29		(46)		(14)		(32)		(15)
Total net realized gains (losses) excluded from core earnings, after tax	$	(117)	$	166	$	54	$	116	$	62

[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, equity derivatives, and commodity derivatives. Also includes periodic net coupon settlements on credit derivatives, which are included in core earnings, as well as transactional foreign currency revaluation.

Table of Contents

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMPOSITION OF INVESTED ASSETS

CONSOLIDATED


	Mar 31 2022				Dec 31 2021				Sept 30 2021				Jun 30 2021				Mar 31 2021
	Amount [1]		Percent		Amount [1]		Percent		Amount		Percent		Amount		Percent		Amount [1]		Percent
Total investments	$	55,951	100.0	%	$	57,749	100.0	%	$	57,574	100.0	%	$	56,787	100.0	%	$	55,727	100.0	%
Asset-backed securities	$	942	2.4	%	$	1,135	2.7	%	$	1,207	2.7	%	$	1,321	3.0	%	$	1,435	3.2	%
Collateralized loan obligations	2,971		7.4	%	3,025		7.1	%	3,011		6.9	%	3,100		7.0	%	3,049		7.0	%
Commercial mortgage-backed securities	3,722		9.3	%	4,119		9.6	%	4,191		9.5	%	4,095		9.3	%	4,167		9.5	%
Corporate	17,618		43.8	%	18,707		43.6	%	18,861		43.0	%	19,161		43.5	%	19,495		44.8	%
Foreign government/government agencies	784		1.9	%	910		2.1	%	953		2.2	%	873		2.0	%	868		2.0	%
Municipal [2]	7,594		18.8	%	8,257		19.3	%	8,878		20.2	%	9,161		20.8	%	9,214		21.1	%
Residential mortgage-backed securities	3,936		9.8	%	3,643		8.5	%	3,286		7.4	%	3,520		8.0	%	4,025		9.3	%
U.S. Treasuries	2,666		6.6	%	3,051		7.1	%	3,555		8.1	%	2,792		6.4	%	1,354		3.1	%
Total fixed maturities, AFS [3]	$	40,233	100.0	%	$	42,847	100.0	%	$	43,942	100.0	%	$	44,023	100.0	%	$	43,607	100.0	%
U.S. government/government agencies	$	5,426	13.5	%	$	5,881	13.7	%	$	6,640	15.1	%	$	6,031	13.7	%	$	4,837	11.1	%
AAA	5,728		14.2	%	6,133		14.3	%	6,183		14.1	%	6,350		14.4	%	6,759		15.5	%
AA	7,324		18.2	%	7,718		18.0	%	7,794		17.7	%	8,030		18.2	%	8,327		19.1	%
A	10,300		25.6	%	10,962		25.6	%	11,068		25.2	%	11,175		25.4	%	11,109		25.5	%
BBB	9,060		22.5	%	9,708		22.7	%	9,895		22.5	%	10,145		23.1	%	10,359		23.7	%
BB	1,799		4.5	%	1,811		4.2	%	1,769		4.0	%	1,724		3.9	%	1,604		3.7	%
B	560		1.4	%	599		1.4	%	550		1.3	%	521		1.2	%	557		1.3	%
CCC	27		0.1	%	30		0.1	%	38		0.1	%	41		0.1	%	47		0.1	%
CC & below	9		—	%	5		—	%	5		—	%	6		—	%	8		—	%
Total fixed maturities, AFS [3]	$	40,233	100.0	%	$	42,847	100.0	%	$	43,942	100.0	%	$	44,023	100.0	%	$	43,607	100.0	%

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

[2]Primarily comprised of $5.7 billion in Property & Casualty, $1.7 billion in Group Benefits, and $0.2 billion in Corporate as of March 31, 2022.

[3]Fixed maturities, at fair value using the fair value option are not included.

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTED ASSET EXPOSURES

MARCH 31, 2022



	Cost or Amortized Cost		Fair Value		Percent of Total Invested Assets
Top Ten Corporate Fixed Maturity, AFS and Equity Exposures by Sector
Financial services	$	5,526	$	5,430	9.7	%
Technology and communications	2,986		2,990		5.3	%
Consumer non-cyclical	2,562		2,532		4.5	%
Utilities	1,997		1,978		3.5	%
Energy [1]	1,429		1,435		2.6	%
Capital goods	1,436		1,427		2.5	%
Consumer cyclical	1,343		1,317		2.4	%
Basic industry	839		824		1.5	%
Transportation	736		719		1.3	%
Other	887		876		1.6	%
Total	$	19,741	$	19,528	34.9	%
Top Ten Exposures by Issuer [2]
Apple Inc.	$	290	$	298	0.5	%
Government of Canada	234		232		0.4	%
Goldman Sachs Group Inc.	209		201		0.4	%
IBM Corporation	191		195		0.4	%
Bank of America Corporation	189		187		0.3	%
Mitsubishi UFJ Financial Group	178		177		0.3	%
Comcast Corporation	168		176		0.3	%
JPMorgan Chase & Company	182		174		0.3	%
Morgan Stanley	169		170		0.3	%
Citigroup Inc.	165		164		0.3	%
Total	$	1,975	$	1,974	3.5	%

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

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

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

APPENDIX

BASIS OF PRESENTATION AND DEFINITIONS

All amounts are in millions, except for per share and ratio information, unless otherwise stated. Amounts presented throughout this document have been rounded for presentation purposes.

The Hartford Financial Services Group, Inc. (the "Company", "we", or "our") currently conducts business principally in five reporting segments: Commercial Lines, Personal Lines, Property & Casualty Other Operations ("P&C Other Operations"), Group Benefits and Hartford Funds, as well as a Corporate category.

Property & Casualty ("P&C") businesses consist of three reporting segments: Commercial Lines, Personal Lines and P&C Other Operations. Commercial Lines provides workers’ compensation, property, automobile, general liability, umbrella, professional liability, bond, marine, livestock and accident and health reinsurance to businesses in the United States ("U.S.") and internationally. Commercial Lines generally consists of products written for small businesses, middle market companies as well as national and multi-national accounts, largely distributed through retail agents and brokers, wholesale agents and global and specialty reinsurance brokers. Small commercial and middle market lines within middle & large commercial are generally referred to as standard commercial lines. Global specialty provides a variety of customized insurance products, including reinsurance. Personal Lines provides automobile, homeowners and personal umbrella coverages to individuals across the U.S., including a special program designed exclusively for members of AARP. P&C Other Operations includes certain property and casualty operations, managed by the Company, that have discontinued writing new business and represent approximately 85% 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 funds are sold primarily through retail, bank trust and registered investment advisor channels.

The Company includes in the Corporate category reserves for run-off structured settlement and terminal funding agreement liabilities, restructuring costs, capital raising activities (including equity financing, debt financing and related interest expense), transaction expenses incurred in connection with an acquisition, certain M&A costs, purchase accounting adjustments related to goodwill, and other expenses not allocated to the reporting segments. Corporate also includes investment management fees and expenses related to managing third party business, including management of a portion of the invested assets of Talcott Resolution Life, Inc. and its subsidiaries as well as certain affiliates. In addition, up until June 30, 2021 when the investment was sold, Corporate included a 9.7% ownership interest in Hopmeadow Holdings, LP, the legal entity that acquired the life and annuity business in May 2018 (Hopmeadow Holdings, LP, Talcott Resolution Life Inc., and its subsidiaries are collectively referred to as "Talcott Resolution").

Certain operating and statistical measures for P&C Commercial Lines and for Personal Lines have been incorporated herein to provide supplemental data that indicate current trends in the Company's business. These measures include policies in-force, net new business premium, gross new business premium, policy count retention, and renewal written price increases. Policy count retention represents the ratio of the number of renewal policies issued during the current year period divided by the number of policies issued in the previous calendar period before considering policies cancelled subsequent to renewal. 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 consist of amortization of deferred policy acquisition costs and insurance operating costs and expenses, including certain centralized services and bad debt expense, but excluding integration and other non-recurring M&A costs. The policyholder dividend ratio is the ratio of policyholder dividends to earned premiums. The combined ratio is the sum of the loss and loss adjustment expense ratio, the expense ratio and the policyholder dividend ratio. These ratios are relative measurements that describe the related cost of losses, expenses and policyholder dividends for every $100 of earned premiums. A combined ratio below 100 demonstrates underwriting profit; a combined ratio above 100 demonstrates underwriting losses. The current accident year catastrophe ratio (a component of the loss ratio) represents the ratio of catastrophe losses and loss adjustment expenses incurred in the current accident year to earned premiums. The prior accident year loss and loss adjustment expense ratio (a component of the loss ratio) represents the increase (decrease) in the estimated cost of settling catastrophe and non-catastrophe claims incurred in prior accident years as recorded in the current calendar year divided by earned premiums.

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

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

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DISCUSSION OF NON-GAAP AND OTHER FINANCIAL MEASURES

The Company uses non-GAAP and other financial measures in this Investor Financial Supplement to assist investors in analyzing the Company's operating performance. Because the Company's calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing the Company's non-GAAP and other financial measures to those of other companies. Non-GAAP measures are indicated with an asterisk the first time they appear in this document.

Core earnings- The Hartford uses the non-GAAP measure core earnings as an important measure of the Company’s operating performance. The Hartford believes that core earnings provides investors with a valuable measure of the performance of the Company’s ongoing businesses because it reveals trends in our insurance and financial services businesses that may be obscured by including the net effect of certain items. Therefore, the following items are excluded from core earnings:

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

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

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

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BASIC EARNINGS PER SHARE


	THREE MONTHS ENDED
	Mar 31 2022		Dec 31 2021		Sept 30 2021		Jun 30 2021		Mar 31 2021
Net Income available to common stockholders per share	$	1.32	$	2.14	$	1.38	$	2.54	$	0.68


Adjustments made to reconcile net income available to common stockholders per share to core earnings per share:
Net realized losses (gains), excluded from core earnings, before tax	0.44		(0.63)		(0.20)		(0.42)		(0.21)
Restructuring and other costs, before tax	0.02		0.01		(0.03)		—		0.03


Integration and other non-recurring M&A costs, before tax	0.02		0.01		0.02		0.10		0.03

Change in deferred gain on retroactive reinsurance, before tax	—		0.51		0.08		0.11		0.02
Income tax expense (benefit) on items excluded from core earnings	(0.11)		0.02		0.03		0.03		0.02

Core earnings per share	$	1.69	$	2.06	$	1.28	$	2.36	$	0.57

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 2022		Dec 31 2021		Sept 30 2021		Jun 30 2021		Mar 31 2021
Net Income available to common stockholders per diluted share	$	1.30	$	2.10	$	1.36	$	2.51	$	0.67


Adjustments made to reconcile net income available to common stockholders per diluted share to core earnings per diluted share:
Net realized losses (gains), excluded from core earnings, before tax	0.43		(0.61)		(0.19)		(0.41)		(0.21)
Restructuring and other costs, before tax	0.01		0.01		(0.03)		—		0.03


Integration and other non-recurring M&A costs, before tax	0.01		0.01		0.02		0.10		0.02

Change in deferred gain on retroactive reinsurance, before tax	—		0.50		0.08		0.11		0.02
Income tax expense (benefit) on items excluded from core earnings	(0.09)		0.01		0.02		0.02		0.03
Core earnings per diluted share	$	1.66	$	2.02	$	1.26	$	2.33	$	0.56

Book value per diluted share (excluding AOCI)-This is a non-GAAP per share measure that is calculated by dividing (a) common stockholders' equity, excluding AOCI, after tax, by (b) common shares outstanding and dilutive potential common shares. The Company provides this measure to enable investors to analyze the amount of the Company's net worth that is primarily attributable to the Company's business operations. The Company believes that excluding AOCI from the numerator is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Book value per diluted share is the most directly comparable U.S. GAAP measure. Reconciliations of book value per common share and book value per diluted share to book value per common share, excluding AOCI and book value per diluted share, excluding AOCI, are set forth on page 1.

Core Earnings Return on Equity- The Company provides different measures of the return on stockholders' equity (ROE). Core earnings ROE is calculated based on non-GAAP financial measures. Core earnings ROE is calculated by dividing (a) the non-GAAP measure core earnings for the prior four fiscal quarters by (b) the non-GAAP measure average common stockholders' equity, excluding AOCI. Net income ROE is the most directly comparable U.S. GAAP measure. The Company excludes AOCI in the calculation of core earnings ROE to provide investors with a measure of how effectively the Company is investing the portion of the Company's net worth that is primarily attributable to the Company's business operations. The Company provides to investors return on equity measures based on its non-GAAP core earnings financial measure for the reasons set forth in the core earnings definition. A reconciliation of Net income (loss) ROE to Core earnings ROE is set forth below:

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	LAST TWELVE MONTHS ENDED
	Mar 31 2022		Dec 31 2021		Sept 30 2021		Jun 30 2021		Mar 31 2021
Net income ROE	15.4	%	13.1	%	12.3	%	12.3	%	10.5	%

Adjustments to reconcile net income (loss) ROE to core earnings ROE:
Net realized losses (gains), excluded from core earnings, before tax	(1.7	%)	(2.8	%)	(2.3	%)	(1.9	%)	(1.8	%)

Restructuring and other costs, before tax	—	%	—	%	0.1	%	0.7	%	0.7	%



Integration and other non-recurring M&A costs, before tax	0.3	%	0.3	%	0.4	%	0.4	%	0.3	%

Change in deferred gain on retroactive reinsurance, before tax	1.5	%	1.4	%	1.6	%	1.6	%	1.8	%
Income tax expense (benefit) on items not included in core earnings	(0.1	%)	0.2	%	(0.1	%)	(0.3	%)	(0.3	%)


Impact of AOCI, excluded from denominator of core earnings ROE	(0.6	%)	0.5	%	0.5	%	0.3	%	(0.3	%)
Core earnings ROE	14.8	%	12.7	%	12.5	%	13.1	%	10.9	%

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, excluding AOCI to its most directly comparable GAAP measure, total stockholders' equity, is set forth on page 4.

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.

PROPERTY & CASUALTY


	THREE MONTHS ENDED
	Mar 31 2022		Dec 31 2021		Sept 30 2021		Jun 30 2021		Mar 31 2021
Net income	$	468	$	662	$	430	$	704	$	251
Adjustments to reconcile net income to underlying underwriting gain:
Net investment income	(382)		(427)		(487)		(442)		(378)
Net realized losses (gains)	104		(136)		(57)		(56)		(53)
Net servicing and other expense (income)	2		(3)		(2)		(6)		(2)

Income tax expense	116		160		99		155		55
Underwriting gain (loss)	308		256		(17)		355		(127)
Current accident year catastrophes	98		22		300		128		214
Prior accident year development	(36)		29		90		(149)		229

Underlying underwriting gain	$	370	$	307	$	373	$	334	$	316

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COMMERCIAL LINES


	THREE MONTHS ENDED
	Mar 31 2022		Dec 31 2021		Sept 30 2021		Jun 30 2021		Mar 31 2021
Net income	$	383	$	702	$	357	$	569	$	129
Adjustments to reconcile net income to underlying underwriting gain:
Net servicing income	(1)		(2)		(2)		(7)		(2)
Net investment income	(333)		(372)		(421)		(382)		(327)
Net realized losses (gains)	91		(118)		(51)		(47)		(44)
Other expense	7		3		5		6		4

Income tax expense	95		174		82		122		24
Underwriting gain (loss)	242		387		(30)		261		(216)
Current accident year catastrophes	81		6		222		93		175
Prior accident year development	(33)		(114)		122		(105)		238

Underlying underwriting gain (loss)	$	290	$	279	$	314	$	249	$	197

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PERSONAL LINES


	THREE MONTHS ENDED
	Mar 31 2022		Dec 31 2021		Sept 30 2021		Jun 30 2021		Mar 31 2021
Net income	$	77	$	81	$	51	$	118	$	135
Adjustments to reconcile net income (loss) to underlying underwriting gain:
Net servicing income	(4)		(4)		(6)		(5)		(4)
Net investment income	(33)		(38)		(44)		(40)		(35)
Net realized losses (gains)	9		(12)		(4)		(6)		(7)
Other expense (income)	—		(1)		1		—		—
Income tax expense	20		19		12		29		35
Underwriting gain	69		45		10		96		124
Current accident year catastrophes	17		16		78		35		39
Prior accident year development	(3)		(31)		(27)		(44)		(42)
Underlying underwriting gain	$	83	$	30	$	61	$	87	$	121

P&C OTHER OPERATIONS


	THREE MONTHS ENDED
	Mar 31 2022		Dec 31 2021		Sept 30 2021		Jun 30 2021		Mar 31 2021
Net income (loss)	$	8	$	(121)	$	22	$	17	$	(13)
Adjustments to reconcile net income to underlying underwriting gain (loss):
Net investment income	(16)		(17)		(22)		(20)		(16)
Net realized losses (gains)	4		(6)		(2)		(3)		(2)

Other income	—		1		—		—		—
Income tax expense (benefit)	1		(33)		5		4		(4)
Underwriting loss	(3)		(176)		3		(2)		(35)

Prior accident year development	—		174		(5)		—		33
Underlying underwriting loss	$	(3)	$	(2)	$	(2)	$	(2)	$	(2)

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

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


	THREE MONTHS ENDED
	Mar 31 2022		Dec 31 2021		Sept 30 2021		Jun 30 2021		Mar 31 2021
Net income margin	(0.4)	%	2.6	%	1.8	%	10.7	%	0.6	%
Adjustments to reconcile net income margin to core earnings margin:
Net realized losses (gains) excluded from core earnings, before tax	1.0	%	(4.3)	%	(0.9)	%	(1.7)	%	(1.1)	%
Integration and other non-recurring M&A costs, before tax	0.1	%	0.1	%	0.1	%	0.1	%	0.1	%
Income tax expense (benefit)	(0.2)	%	0.8	%	0.2	%	0.4	%	0.2	%

Core earnings margin	0.5	%	(0.8)	%	1.2	%	9.5	%	(0.2)	%

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 2022	Dec 31 2021	Sept 30 2021	Jun 30 2021	Mar 31 2021
Return on Assets ("ROA")	11.2	15.8	14.4	13.8	13.1
Adjustments to reconcile ROA to ROA, core earnings:
Effect of net realized losses (gains), excluded from core earnings, before tax	2.4	(0.8)	0.8	(0.5)	(0.5)
Effect of income tax expense (benefit)	(0.3)	0.3	(0.2)	0.3	—
Return on Assets ("ROA"), core earnings	13.3	15.3	15.0	13.6	12.6

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

CONSOLIDATED


	THREE MONTHS ENDED
	Mar 31 2022		Dec 31 2021		Sept 30 2021		Jun 30 2021		Mar 31 2021
Total net investment income	$	509	$	573	$	650	$	581	$	509
Adjustment for loss (income) from limited partnerships and other alternative investments	(126)		(170)		(259)		(191)		(112)
Net investment income excluding limited partnerships and other alternative investments	$	383	$	403	$	391	$	390	$	397

PROPERTY & CASUALTY


	THREE MONTHS ENDED
	Mar 31 2022		Dec 31 2021		Sept 30 2021		Jun 30 2021		Mar 31 2021
Total net investment income	$	382	$	427	$	487	$	442	$	378
Adjustment for loss (income) from limited partnerships and other alternative investments	(97)		(137)		(198)		(151)		(84)
Net investment income excluding limited partnerships and other alternative investments	$	285	$	290	$	289	$	291	$	294

GROUP BENEFITS


	THREE MONTHS ENDED
	Mar 31 2022		Dec 31 2021		Sept 30 2021		Jun 30 2021		Mar 31 2021
Total net investment income	$	123	$	128	$	159	$	136	$	127
Adjustment for loss (income) from limited partnerships and other alternative investments	(29)		(33)		(61)		(40)		(28)
Net investment income excluding limited partnerships and other alternative investments	$	94	$	95	$	98	$	96	$	99

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 2022		Dec 31 2021		Sept 30 2021		Jun 30 2021		Mar 31 2021
Annualized investment yield	3.6	%	4.1	%	4.8	%	4.4	%	3.8	%
Adjustment for loss (income) from limited partnerships and other alternative investments	(0.7)	%	(1.0)	%	(1.8)	%	(1.3)	%	(0.7)	%
Annualized investment yield excluding limited partnerships and other alternative investments	2.9	%	3.1	%	3.0	%	3.1	%	3.1	%

PROPERTY & CASUALTY


	THREE MONTHS ENDED
	Mar 31 2022		Dec 31 2021		Sept 30 2021		Jun 30 2021		Mar 31 2021
Annualized investment yield	3.7	%	4.2	%	4.8	%	4.5	%	3.9	%
Adjustment for loss (income) from limited partnerships and other alternative investments	(0.8)	%	(1.2)	%	(1.8)	%	(1.4)	%	(0.7)	%
Annualized investment yield excluding limited partnerships and other alternative investments	2.9	%	3.0	%	3.0	%	3.1	%	3.2	%

GROUP BENEFITS


	THREE MONTHS ENDED
	Mar 31 2022		Dec 31 2021		Sept 30 2021		Jun 30 2021		Mar 31 2021
Annualized investment yield	4.2	%	4.4	%	5.4	%	4.7	%	4.4	%
Adjustment for loss (income) from limited partnerships and other alternative investments	(0.8)	%	(1.0)	%	(1.9)	%	(1.2)	%	(0.9)	%
Annualized investment yield excluding limited partnerships and other alternative investments	3.4	%	3.4	%	3.5	%	3.5	%	3.5	%

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