8K Earnings Release Cover Page 06.30.13

0000874766-13-000049.txt : 20130729 0000874766-13-000049.hdr.sgml : 20130729 20130729163237 ACCESSION NUMBER: 0000874766-13-000049 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20130729 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20130729 DATE AS OF CHANGE: 20130729 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTFORD FINANCIAL SERVICES GROUP INC/DE CENTRAL INDEX KEY: 0000874766 STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [6331] IRS NUMBER: 133317783 STATE OF INCORPORATION: DE FISCAL YEAR END: 1212 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13958 FILM NUMBER: 13992867 BUSINESS ADDRESS: STREET 1: ONE HARTFORD PLAZA CITY: HARTFORD STATE: CT ZIP: 06155 BUSINESS PHONE: 8605475000 MAIL ADDRESS: STREET 1: ONE HARTFORD PLAZA CITY: HARTFORD STATE: CT ZIP: 06155 FORMER COMPANY: FORMER CONFORMED NAME: ITT HARTFORD GROUP INC /DE DATE OF NAME CHANGE: 19930328 8-K 1 a8kearningsreleasecoverpag.htm 8-K 8K Earnings Release Cover Page 06.30.13

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 29, 2013

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

(Exact name of registrant as specified in its charter)




Delaware	001-13958	13-3317783
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

The Hartford Financial Services Group, Inc. One Hartford Plaza Hartford, Connecticut		06155
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s telephone number, including area code: (860) 547-5000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:



¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)



¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)



¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))



¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))



Item 2.02	Results of Operations and Financial Condition

On July 29, 2013, The Hartford Financial Services Group, Inc. (the "Company") issued (i) a press release announcing its financial results for the quarter ended June 30, 2013, and (ii) its Investor Financial Supplement (“IFS”) relating to its financial results for the quarter ended June 30, 2013. Copies of the press release and the IFS are furnished herewith as Exhibits 99.1 and 99.2, respectively, and are incorporated herein by reference.

The information furnished pursuant to this Item 2.02, including Exhibits 99.1 and 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act.



Item 9.01	Financial Statements and Exhibits



Exhibit No.

99.1		Press Release of The Hartford Financial Services Group, Inc. dated July 29, 2013

99.2		Investor Financial Supplement of The Hartford Financial Services Group, Inc. for the quarter ended June 30, 2013

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



Date:	July 29, 2013	By:	/s/ Scott R. Lewis
		Name:	Scott R. Lewis
		Title:	Senior Vice President and Controller

EX-1.99.1 2 ex991earningsnewsrelease06.htm EXHIBIT Ex 99.1 Earnings News Release 06.30.13

NEWS RELEASE

The Hartford Reports Second Quarter 2013 Financial Results


•	Core earnings* totaled $324 million, or $0.66 per diluted share, including $95 million, or $0.19 per diluted share, of losses from prior year development


•	Net loss of $190 million, or $0.42 per diluted share, compared with net loss of $101 million, or $0.26 per diluted share, in second quarter 2012


•	Standard Commercial renewal written pricing increased 8%, in line with the last three quarters


•	P&C combined ratio, before catastrophes and prior year development*, improved to 91.8 from 93.6 in second quarter 2012


•	Annualized full surrender rates of Japan and U.S. variable annuities increased to 34.8% and 17.5%, respectively


•	Equity repurchase authorization for 2013-2014 expanded in June to $1.25 billion; repurchases totaled $118 million in second quarter 2013


•	Quarterly dividend increased by 50% to $0.15 per share

HARTFORD, Conn., July 29, 2013 – The Hartford (NYSE:HIG) reported core earnings of $324 million, or $0.66 per diluted share, for the three months ended June 30, 2013 (second quarter 2013), up 18% from $274 million, or $0.56 per diluted share, in second quarter 2012. The improvement from the prior year quarter was principally due to higher core earnings in Property & Casualty (P&C), Group Benefits and Mutual Funds and a lower core loss in Corporate.

The company reported a second quarter 2013 net loss of $190 million, or $0.42 per diluted share, which included $421 million, after-tax, of realized capital losses, principally from the company's international variable annuity (VA) hedging programs, and a $126 million, after-tax, loss from discontinued operations due to the agreement to sell Hartford Life International Limited (HLIL) for approximately $285 million in cash. Second quarter 2012 net loss totaled $101 million, or $0.26 per diluted share, and included a $587 million, after-tax, loss on extinguishment of debt and realized capital gains of $369 million, after-tax, principally from international VA hedging programs.

“The Hartford continues to deliver shareholder value through profitable growth, reduced risk and capital management,” said The Hartford's Chairman, President and CEO Liam E. McGee. “This quarter, P&C, Group Benefits and Mutual Funds margin improvements drove core earnings for those businesses up 28% compared with second quarter 2012. We remain focused on achieving renewal written price increases in P&C Commercial, which averaged 8% this quarter for Standard Commercial, in line with the last three quarters. In June, we expanded the 2013 and 2014 equity repurchase program by $750 million, to a total of $1.25 billion, and increased the quarterly dividend by 50%.”

*Denotes financial measures not calculated based on generally accepted accounting principles (“non-GAAP").

“We continue to make progress reducing the size and risk of Talcott Resolution,” said Executive Vice President and Chief Financial Officer Christopher J. Swift. “During the second quarter, variable annuity surrender activity increased, with full surrenders rising to 34.8% on the Japan block and to 17.5% in the U.S., reflecting policyholder behavior in strong markets and our management of the block. In addition, we agreed to sell our U.K. variable annuity business at attractive economics to a subsidiary of Berkshire Hathaway.”

CONSOLIDATED FINANCIAL RESULTS



($ in millions except per share data)	Three Months Ended
($ in millions except per share data)	June 30, 2013	June 30, 2012	Change²
Core earnings (losses):
Property & Casualty	$140	$101	39%
Group Benefits	$37	$34	9%
Mutual Funds	$20	$19	5%
Sub-Total	$197	$154	28%
Talcott Resolution	$196	$200	(2)%
Corporate	($69)	($80)	(14)%
Core earnings	$324	$274	18%
Net loss	($190)	($101)	88%
Net loss available to common shareholders per share	$(0.42)	$(0.26)	62%
Weighted average diluted common shares outstanding	489.0	485.8	1%
Core earnings available to common shareholders per diluted share¹	$0.66	$0.56	18%


[1]	Includes dilutive potential common shares and, in second quarter 2012, assumed conversion of preferred shares


[2]	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

Second quarter 2013 net income and core earnings included unfavorable prior year development (PYD) of $95 million, after-tax, or $0.19 per diluted share on a core earnings basis, including $91 million, after-tax, associated with the company's annual ground-up review of asbestos and environmental reserves and $52 million, after-tax, due to the closing of the New York Fund for Reopened Cases (NY25A). Second quarter catastrophe losses were in line with management's forecast at $121 million, after-tax.

Second quarter 2012 included the following items that decreased net income by $95 million, after-tax, and core earnings by $98 million, after-tax, or $0.20 per diluted share on a core earnings basis:


•	Second quarter 2012 catastrophe losses that were higher than the company's forecast by approximately $105 million, after-tax, or $0.21 per diluted share;


•	Unfavorable PYD of $32 million, after-tax, or $0.07 per diluted share on a core earnings basis, including $33 million, after-tax, associated with the company's annual ground-up review of asbestos and environmental reserves; and


•	Net income of $42 million, or $0.09 per diluted share, and core earnings of $39 million, or $0.08 per diluted share, from the Retirement Plans and Individual Life businesses that were sold in first quarter 2013, and HLIL, which was classified as a discontinued operation effective March 31, 2013.

PROPERTY & CASUALTY (CONSOLIDATED)

Second Quarter 2013 Highlights:


•	Core earnings rose 39% due to improved underwriting results compared with second quarter 2012


•	Combined ratio improved to 105.4 from 107.5 in second quarter 2012


•	Combined ratio, before catastrophes and PYD, improved to 91.8 from 93.6 in second quarter 2012



PROPERTY & CASUALTY
($ in millions)	Three Months Ended
	Jun. 30 2013	Jun. 30 2012	Change
Underwriting gain (loss) *	$(132)	$(183)	(28)%
Investment income	$338	$319	6%
Core earnings	$140	$101	39%
Net income	$136	$84	62%
Expense ratio	28.5	28.6	0.1
Combined ratio	105.4	107.5	2.1
Combined ratio before catastrophes and PYD	91.8	93.6	1.8
PYD, before tax	$146	$49	198%
Current accident year catastrophe losses, before tax	$186	$290	(36)%
Written premiums	$2,501	$2,472	1%

P&C (Consolidated) includes the consolidated financial results of the company's three P&C segments: P&C Commercial, Consumer Markets and P&C Other Operations.

Second quarter 2013 P&C (Consolidated) net income was $136 million and core earnings were $140 million, 62% and 39% increases, respectively, primarily reflecting a reduced underwriting loss and higher limited partnership and other alternative investment income compared with second quarter 2012. The improved underwriting results in P&C (Consolidated) were principally due to better Consumer Markets and P&C Commercial underwriting results driven by lower catastrophe losses and improved current accident year underwriting margins that were partially offset by increased unfavorable PYD in P&C Other Operations and, to a lesser extent, P&C Commercial.

Second quarter 2013 combined ratio and underwriting loss were 105.4 and $132 million, respectively, compared with 107.5 and $183 million in second quarter 2012. Before catastrophes and PYD, second quarter 2013 P&C (Consolidated) combined ratio improved to 91.8 compared with 93.6 in second quarter 2012, reflecting improved underwriting margins in both P&C Commercial and Consumer Markets.

Catastrophe losses totaled $186 million, before tax, in second quarter 2013 compared with $290 million, before tax, in second quarter 2012. Unfavorable PYD totaled $146 million, before tax, in second quarter 2013 compared with unfavorable PYD of $49 million, before tax, in second quarter 2012. Unfavorable PYD in second quarter 2013 was comprised of $37 million from P&C Commercial and $141 million from P&C Other Operations, principally due to the company's annual ground-up asbestos and environmental reserve study, partially offset by favorable PYD of $32 million in Consumer Markets. Second quarter 2013 P&C Commercial unfavorable PYD included $80 million for NY25A, before tax.

Second quarter 2013 P&C (Consolidated) written premiums increased 1% over the prior year period, reflecting 1% growth in P&C Commercial Markets and 2% growth in Consumer Markets.

P&C Commercial

Second Quarter 2013 Highlights:


•	Underwriting gain of $25 million compared with a $7 million underwriting loss in second quarter 2012 reflecting improved current accident year results and lower catastrophes


•	Standard Commercial renewal written price increases rose to 8% in second quarter 2013 compared with 7% in second quarter 2012


•	Middle Market workers’ compensation and property both achieved written pricing increases in the 9-10% range during second quarter 2013



P&C COMMERCIAL
($ in millions)	Three Months Ended
	June 30, 2013	June 30, 2012	Change
Underwriting gain (loss)	$25	$(7)	NM
Combined ratio	98.4	100.5	2.1
Combined ratio before catastrophes and PYD	93.1	94.5	1.4
Written premiums	$1,533	$1,516	1%
Standard commercial rate increases	8%	7%	1.0

P&C Commercial underwriting gain was $25 million in second quarter 2013 compared with an underwriting loss of $7 million in second quarter 2012. The improvement in underwriting results was due to improved current accident year results and lower catastrophes, which were slightly offset by higher unfavorable PYD. Second quarter 2013 catastrophe losses totaled $44 million, before tax, for 14 events compared with $74 million, before tax, for 13 events in second quarter 2012. Unfavorable PYD increased to $37 million, before tax, in second quarter 2013 compared with unfavorable PYD of $19 million, before tax, in second quarter 2012. Second quarter 2013 unfavorable PYD included $80 million ($52 million, after-tax) due to NY25A.

The combined ratio before catastrophes and PYD improved to 93.1 in second quarter 2013 compared with 94.5 in second quarter 2012, reflecting improved underwriting margins in Middle Market and Specialty driven by the company's pricing and underwriting initiatives since mid-year 2011.

P&C Commercial renewal written pricing continued to be strong, achieving increases in all standard commercial business lines in second quarter 2013. Standard Commercial, which is

comprised of Small Commercial and Middle Market, achieved renewal written pricing increases of 8%, a 1 point increase over second quarter 2012 and stable with first quarter 2013. Middle Market pricing increased 8%, including Middle Market workers' compensation and property pricing increases in the 9-10% range during second quarter 2013.

Written premiums grew 1% from $1,516 million in second quarter 2012 to $1,533 million in second quarter 2013, driven by growth in Small Commercial and Middle Market, up 2% and 1%, respectively. Written premium growth reflects higher pricing on renewals in Small Commercial and stronger new business production in Middle Market. Policy count retention in Small Commercial was 80% in second quarter 2013 compared with 82% in second quarter 2012. Middle Market policy count retention for second quarter 2013 was 79%, an improvement from 73% in second quarter 2012. New business premium for Small Commercial and Middle Market totaled $241 million, up 13% from $213 million in second quarter 2012 driven by Middle Market workers' compensation, property, auto and general liability.

Consumer Markets

Second Quarter 2013 Highlights:


•	Written premiums rose 2% compared with second quarter 2012 due to strong new business and improved retention


•	Combined ratio, excluding catastrophes and PYD, improved to 88.9 compared with 91.3 in second quarter 2012


•	Auto policy count retention improved 2 points and homeowners improved 1 point compared with second quarter 2012



CONSUMER MARKETS
($ in millions)	Three Months Ended
	June 30, 2013	June 30, 2012	Change
Underwriting loss	$(9)	$(114)	(92%)
Combined ratio	101.0	112.6	11.6
Combined ratio before catastrophes and PYD	88.9	91.3	2.4
Written premiums	$967	$950	2%

Consumer Markets reported an underwriting loss of $9 million in second quarter 2013, down from an underwriting loss of $114 million in second quarter 2012 due to favorable loss trends, including reduced current accident year catastrophe losses and more favorable PYD. Second quarter 2013 underwriting results included current accident year catastrophe losses of $142 million, before tax, compared with $216 million, before tax, in second quarter 2012. Favorable PYD was $32 million, before tax, in second quarter 2013 compared with favorable PYD of $23 million, before tax, in second quarter 2012. Favorable PYD in second quarter 2013 was predominantly due to favorable PYD on catastrophes driven by Storm Sandy.

Consumer Markets combined ratio, before catastrophes and PYD, was 88.9 in second quarter 2013, down from 91.3 in second quarter 2012. The improvement of 2.4 points reflects earned pricing increases, favorable loss cost trends and a 1 point improvement in the expense ratio. The auto combined ratio, before catastrophes and PYD, was down 2.2 points due to earned pricing increases and favorable auto liability frequency. The homeowners combined ratio, before

catastrophes and PYD, was 2.3 points better than second quarter 2012 driven by earned pricing increases and favorable non-catastrophe weather claim frequency.

Second quarter 2013 written premiums rose 2% from second quarter 2012 as a result of improved premium and policy count retention and a 10% increase in new written premium from AARP Direct and AARP Agency production. Auto new business premiums were up 9% while homeowners increased 13%. Second quarter 2013 policy count retention for auto and homeowners increased by 2 points and 1 point to 86% and 87%, respectively, from second quarter 2012. Premium retention for auto and homeowners each increased by 2 points to 88% and 92%, respectively.

P&C Other Operations

Second quarter 2013 underwriting loss was $148 million compared with $62 million in second quarter 2012. Second quarter 2013 results included unfavorable PYD of $141 million, before tax, while second quarter 2012 included unfavorable PYD of $53 million, before tax. The PYD was largely due to a $130 million, before tax, increase in asbestos reserves compared with $48 million, before tax, in second quarter 2012. Environmental PYD totaled $10 million, before tax, compared with $3 million in second quarter 2012. The company completes its annual review of asbestos and environmental reserves during the second quarter of each year.

GROUP BENEFITS

Second Quarter 2013 Highlights:


•	Core earnings were $37 million, up 9% from $34 million in second quarter 2012, driven by improved group long-term disability results


•	After-tax core earnings margin was 3.9% compared with 3.2% in second quarter 2012


•	Fully insured premiums declined 13% in second quarter 2013 from second quarter 2012 primarily due to pricing discipline for new and renewal business, the loss of a large account due to pricing and other considerations, and management actions specifically related to the Association block of business


•	Loss ratio improved 2.9 points from second quarter 2012 to 75.7% driven by improving long-term disability pricing and loss trends



GROUP BENEFITS
($ in millions)	Three Months Ended
	June 30, 2013	June 30, 2012	Change
Fully insured premiums¹	$822	$950	(13%)
Loss ratio	75.7%	78.6%	2.9
Core earnings	$37	$34	9%

[1] Fully insured ongoing premiums excludes buyout premiums and premium equivalents

Group Benefits second quarter 2013 net income rose 74% to $61 million compared with $35 million in second quarter 2012 due to higher realized capital gains and improved core earnings. Second quarter 2013 realized capital gains totaled $24 million, after-tax, compared with $0 million, after-tax, in second quarter 2012. Core earnings in second quarter 2013 were $37 million compared with $34 million in second quarter 2012, driven by improved group long-term disability results.

The loss ratio improved to 75.7 in second quarter 2013 compared with 78.6 in second quarter 2012, a 2.9 point improvement. The overall group disability loss ratio improved by 10.4 points from the prior year quarter, reflecting improved claims incidence and continued favorable claim recovery trends.

In second quarter 2013, fully insured premiums in Group Benefits were $822 million, a 13% decrease compared with $950 million in second quarter 2012. The reduction in premiums was primarily due to the effect of the company's pricing discipline for new business and case renewals, and management actions specifically related to the Association block of business.

MUTUAL FUNDS

Second Quarter 2013 Highlights:

•Gross sales improved 32% versus second quarter 2012


•	Core earnings were $20 million, up compared with $19 million in second quarter 2012


•	Total Mutual Funds assets under management rose 7% to $63.6 billion at June 30, 2013 from $59.3 billion at June 30, 2012



MUTUAL FUNDS
($ in millions)	Three Months Ended
	June 30, 2013	June 30, 2012	Change
Core earnings	$20	$19	5%
Total Mutual Funds assets under management	$63,608	$59,343	7%
Average Mutual Funds assets under management	$64,708	$61,302	6%
Annuity assets under management	$25,901	$26,888	(4%)
Total assets under management	$89,509	$86,231	4%
Average assets under management	$90,973	$89,318	2%

Second quarter 2013 net income for Mutual Funds totaled $20 million, up 11% compared with $18 million in second quarter 2012 due to higher revenue partially offset by increased distribution expenses and higher state taxes.

Mutual Funds second quarter 2013 core earnings were $20 million, up compared with $19 million in second quarter 2012, as average assets under management rose 2%. The growth in assets under management reflects growth in Mutual Funds that was partially offset by declines in Annuity assets. Mutual Funds assets under management increased 7% to $63.6 billion at June 30, 2013 from $59.3 billion at June 30, 2012, reflecting market appreciation of $9.5 billion, partially offset by $5.2 billion of net outflows. Mutual Funds net outflows included an expected institutional redemption as well as a portfolio rebalance at a key distributor, together totaling $2.5 billion. Annuity assets under management declined 4% at June 30, 2013 compared with June 30, 2012 as market appreciation during the last year was offset by redemptions.

TALCOTT RESOLUTION

Second Quarter 2013 Highlights:


•	Reached agreement to sell the U.K. VA business to a subsidiary of Berkshire Hathaway for approximately $285 million in cash; transaction expected to close by year-end 2013


•	Japan VA full surrender rate rose to an annualized rate of 34.8% compared with 9.6% in first quarter 2013 and 3.9% in second quarter 2012


•	Second quarter 2013 U.S. VA full surrender rate, including the impact of the Enhanced Surrender Value (ESV) program in 2013, rose to an annualized rate of 17.5% compared with 14.5% in first quarter 2013 and 13.0% in second quarter 2012



TALCOTT RESOLUTION
($ in millions)	Three Months Ended
	June 30, 2013	June 30, 2012	Change
Core earnings	$196	$200	(2%)
Net income (loss)	$(332)	$440	NM
U.S. VA annualized full surrender rate¹	17.5%	13.0%	4.5
Japan VA annualized full surrender rate¹	34.8%	3.9%	30.9
U.S. Annuity account value	$73,249	$77,766	(6%)
Japan Annuity account value	$27,289	$32,438	(16%)

[1] Full surrender rate represents full contract liquidation; excludes partial withdrawals

Talcott Resolution second quarter 2013 net loss was $332 million compared with net income of $440 million in second quarter 2012. The second quarter 2013 net loss included the following items, which are not included in core earnings:


•	Net realized capital losses of $442 million, after-tax and DAC, compared with net realized gains of $387 million, after-tax and DAC, in second quarter 2012, principally as a result of the company's International VA hedging programs;


•	Loss from discontinued operations of $124 million, after-tax, including $102 million loss on sale of the U.K. VA business; and


•	Unlock benefit for market performance and assumption changes of $36 million, after-tax, compared with a charge of $146 million, after-tax, in second quarter 2012.

Talcott Resolution second quarter 2013 core earnings were $196 million, a 2% decrease compared with $200 million in second quarter 2012. Second quarter 2012 core earnings included $39 million from the Individual Life and Retirement Plans businesses, which were sold in January 2013. Excluding these core earnings, second quarter 2013 core earnings rose 22%, primarily driven by lower DAC amortization expense in Japan and the U.S. The write-off of Japan VA DAC in first quarter 2013 eliminated DAC amortization expense in future periods, beginning with second quarter 2013. Second quarter 2013 results also included the cost of the ESV program of $23 million, after-tax and DAC. Since its launch in first quarter 2013, the total cost of the ESV program has been $48 million, after-tax and DAC.

Second quarter 2013 U.S. VA annualized full surrender rate increased to 17.5% compared to 13.0% in second quarter 2012 and 14.5% in first quarter 2013 primarily due to the success of the ESV program. Japan VA annualized full surrender rate increased sharply to 34.8% in second quarter 2013 from 3.9% in second quarter 2012 and 9.6% in first quarter 2013 due to improved market levels coupled with the aging of the block in Japan.

U.S. Annuity account values at June 30, 2013 declined 6% compared with June 30, 2012 principally due to the continued run-off of the book. U.S. VA account values declined to $62.6 billion at June 30, 2013 from $66.5 billion at June 30, 2012 due to negative net flows of $12.5 billion. Japan Annuity account values declined by 16%, also principally due to the runoff of the VA book. Japan VA account values declined to $23.9 billion at June 30, 2013 from $28.0 billion at June 30, 2012 due to negative net flows of $4.3 billion, which reflect significantly higher surrenders in first and second quarter 2013 compared with 2012.

CORPORATE

Net loss in Corporate totaled $75 million in second quarter 2013 compared with a net loss of $678 million in second quarter 2012. During second quarter 2012, the company incurred a $587 million after-tax charge for the early extinguishment of debt; there was no corresponding charge in second quarter 2013. In addition, second quarter 2013 net income included restructuring and other costs of $12 million, after-tax, compared with $18 million, after-tax, in second quarter 2012.

Second quarter 2013 Corporate core losses totaled $69 million, an $11 million decrease from core losses of $80 million in second quarter 2012 due to lower interest expense. Interest expense totaled $100 million, before tax, in the quarter, a decrease of 13% from $115 million, before tax, due to the Allianz debt refinancing in April 2012 and $800 million of debt repayment in second quarter 2013.

INVESTMENTS

Second Quarter 2013 Highlights:


•	Annualized pre-tax investment yield of 4.4%, down from 4.5% in second quarter 2012, which included investments for the Individual Life and Retirement Plans businesses that were sold in January 2013


•	Excluding limited partnerships and other alternative investments, pre-tax annualized investment yield was 4.1%, consistent with second quarter 2012, excluding sold businesses


•	Net impairment losses including mortgage loan loss reserves were $12 million, before tax, compared with $98 million, before tax, in second quarter 2012



INVESTMENTS
($ in millions)	Three Months Ended
Amounts presented before tax	June 30, 2013	June 30, 2012	Change
Net investment income, excluding trading securities	$867	$1,094	(21%)
Net impairment losses including mortgage loan loss reserves	$12	$98	(88%)
Annualized investment yield¹	4.4%	4.5%	(0.1)
Annualized investment yield, excluding limited partnerships and other alternative investments	4.1%	4.3%	(0.2)
Annualized investment yield, excluding Retirement Plans, Individual Life and limited partnerships and other alternative investments	4.1%	4.1%	—

[1] Yields, before tax, calculated using annualized net investment income (excluding income related to equity securities, trading) divided by the monthly average invested assets at cost, amortized cost, or adjusted carrying value, as applicable, excluding equity securities, trading, repurchase agreement and dollar roll collateral, and consolidated variable interest entity non-controlling interests. Yield calculations for all periods exclude income and assets associated with the disposal of the HLIL business.

Second quarter 2013 net investment income, excluding trading securities associated with the company's runoff Japan VA block, was $867 million, before tax, a 21% decrease compared with second quarter 2012. The reduction in second quarter 2013 net investment income was principally due to lower invested assets as a result of the sale of the Individual Life and Retirement Plans businesses in January 2013. Excluding the impact of these sales, net investment income decreased approximately 1% in second quarter 2013 compared to second quarter 2012.

Annualized investment yield, before tax, was 4.4% in second quarter 2013, down approximately 10 basis points as compared to second quarter 2012, including returns on limited partnerships and other alternative investments. Excluding the impact of the sold businesses, the current quarter annualized investment yield, before tax, of 4.4% was consistent with second quarter 2012 annualized yield and included higher returns on limited partnerships and other alternative investments, offset by the impact of reinvesting at lower rates.

Limited partnership and other alternative investments generated before tax income of $95 million for an annualized return of 13% in second quarter 2013 compared with $72 million, before tax, for an annualized return of 10% in second quarter 2012.

Annualized investment yield, excluding limited partnerships and other alternative investments, declined to 4.1%, before tax, in second quarter 2013 compared to 4.3% in second quarter 2012, primarily resulting as part of the sale of the Individual Life and Retirement Plan businesses. Excluding the impact of the sold businesses, the annualized investment yield, excluding limited partnerships and other alternative investments, was consistent with second quarter 2012 at 4.1%, before tax, as a modest increase in allocation to higher yielding asset classes was offset by the impact of investing in the sustained low interest rate environment.

Net impairment losses for second quarter 2013, including mortgage loan loss reserves, totaled $12 million, before tax, compared with $98 million, before tax, in second quarter 2012. Second quarter 2012 losses included impairment losses on floating-rate preferred and asset-backed securities as a result of low interest rates.

Total invested assets, excluding trading securities, were $82.2 billion as of June 30, 2013 compared with $105.3 billion at Dec. 31, 2012, a 22% reduction due principally to the sale of the Retirement Plans and Individual Life businesses. Excluding the impact of the disposition of these businesses, invested assets, excluding trading securities, declined $5.8 billion at June 30, 2013 compared with Dec. 31, 2012. Declines were driven by the impact of higher interest rates on invested assets, which are recorded at market value, hedging activity including collateral movements, reductions in dollar rolls, and capital management.

Net unrealized gains on available-for-sale securities were $2.1 billion as of June 30, 2013, down $4.1 billion from Dec. 31, 2012, with $1.4 billion resulting from the sale of the Retirement Plans and Individual Life businesses and with the remaining decrease primarily driven by rising interest rates and wider credit spreads.

STOCKHOLDERS’ EQUITY



($ in millions)	As of
	June 30, 2013	December 31, 2012	Change
Stockholders' equity	$19,013	$22,447	(15%)
Stockholders' equity (ex. AOCI)¹	$18,939	$19,604	(3%)
Book value per diluted share	$38.59	$45.80	(16%)
Book value per diluted share (ex. AOCI)*	$38.44	$40.00	(4%)

[1] Accumulated other comprehensive income (AOCI)

The Hartford’s stockholders’ equity was $19.0 billion as of June 30, 2013, a decrease of $3.4 billion, or 15%, from $22.4 billion as of Dec. 31, 2012, reflecting net losses of $431 million in the first half of 2013, share and warrant repurchases totaling $166 million, common and preferred dividends of $101 million and a decrease in AOCI from $2.8 billion at Dec. 31, 2012 to $0.1 billion at June 30, 2013.

The company repurchased 3.4 million shares and 0.9 million warrants for a total of $118 million during second quarter 2013, bringing total repurchases under the $1.25 billion equity repurchase plan to $166 million. Issued shares totaled 491.6 million and diluted common shares totaled 492.7 million at June 30, 2013 compared with 469.7 million and 490.1 million, respectively, at Dec. 31, 2012. The increase in shares was due to the April 1, 2013 conversion of the company's $575 million of Mandatory Convertible Preferred Stock, Series F into 21.2 million shares of common equity. There was no material impact on book value per diluted share as a result of this conversion. Diluted common shares for both periods include the dilutive effect of the company's common stock warrants and options.

Book value per diluted common share was $38.59 as of June 30, 2013, a decrease of 16% compared with $45.80 as of Dec. 31, 2012. Excluding AOCI, book value per diluted common share* declined 4% to $38.44 as of June 30, 2013, compared with $40.00 as of Dec. 31, 2012.

CONFERENCE CALL

The Hartford will discuss its second quarter 2013 financial results in a webcast on Tuesday, July 30, 2013 at 9 a.m. EDT. The webcast, along with a slide presentation, can be accessed live or as a replay through the investor relations section of The Hartford's website at

http://ir.thehartford.com. The slide presentation will be posted on The Hartford’s website at approximately 8:30 a.m. EDT on July 30, 2013.

More detailed financial information can be found in The Hartford's Investor Financial Supplement for June 30, 2013 and 10-Q filing for the quarter ended June 30, 2013, which are both available at http://ir.thehartford.com.

ABOUT THE HARTFORD

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

From time to time, The Hartford may use its website to disseminate material company information. Financial and other important information regarding The Hartford is routinely accessible through and posted on our website at http://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 http://ir.thehartford.com.

HIG-F

Media Contact Investor Contact

Shannon Lapierre Sabra Purtill, CFA

860-547-5624 860-547-8691

shannon.lapierre@thehartford.com sabra.purtill@thehartford.com

Sean Rourke

860-547-5688

sean.rourke@thehartford.com



THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATING INCOME STATEMENTS
($ in millions)
Three Months Ended June 30, 2013
	Property & Casualty	Group Benefits	Mutual Funds	Talcott Resolution	Corporate	Consolidated
Earned premiums	$2,453	$823	$—	$17	$—	$3,293
Fee income	—	15	170	512	2	699
Net investment income (loss)
Securities available-for-sale and other	338	100	—	429	—	867
Equity securities held for trading [1]	—	—	—	1,189	—	1,189
Total net investment income	338	100	—	1,618	—	2,056
Other revenues	65	—	—	—	—	65
Net realized capital gains (losses)	(7)	37	—	(688)	10	(648)
Total revenues	2,849	975	170	1,459	12	5,465
Benefits, losses, and loss adjustment expenses	1,883	635	—	368	—	2,886
Benefits, losses, and loss adjustment expenses – returns credited on International variable annuities [1]	—	—	—	1,188	—	1,188
Amortization of deferred policy acquisition costs	309	8	10	64	—	391
Insurance operating costs and other expenses	492	248	128	219	14	1,101
Interest expense	—	—	—	—	100	100
Restructuring and other costs	—	—	1	(1)	19	19
Total benefits and expenses	2,684	891	139	1,838	133	5,685
Income (loss) from continuing operations before income taxes	165	84	31	(379)	(121)	(220)
Income tax expense (benefit)	27	23	11	(171)	(46)	(156)
Income (loss) from continuing operations	138	61	20	(208)	(75)	(64)
Loss from discontinued operations, after tax	(2)	—	—	(124)	—	(126)
Net income (loss)	136	61	20	(332)	(75)	(190)
Less: Unlock benefit, after tax	—	—	—	36	—	36
Less: Restructuring and other costs, after tax	—	—	(1)	1	(12)	(12)
Less: Income (loss) from discontinued operations, after tax	(2)	—	—	(124)	—	(126)
Less: Net gain (loss) on dispositions, after tax	—	—	—	1	—	1
Less: Net realized gains (losses), after tax and DAC, excluded from core earnings	(2)	24	1	(442)	6	(413)
Core earnings (losses)	$140	$37	$20	$196	$(69)	$324

[1] Includes dividend income and mark-to-market effects of trading securities supporting the international variable annuity business, which are classified

in net investment income with corresponding amounts credited to policyholders within benefits, losses and loss adjustment expenses.



THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATING INCOME STATEMENTS
($ in millions)
Three Months Ended June 30, 2012
	Property & Casualty	Group Benefits	Mutual Funds	Talcott Resolution	Corporate	Consolidated
Earned premiums	$2,454	$950	$—	$(4)	$—	$3,400
Fee income	—	16	148	896	45	1,105
Net investment income (loss)
Securities available-for-sale and other	319	107	—	664	3	1,094
Equity securities held for trading [1]	—	—	—	(1,661)	—	(1,662)
Total net investment income (loss)	319	107	—	(997)	3	(568)
Other revenues	61	—	—	—	—	61
Net realized capital gains (losses)	(21)	—	(2)	573	17	567
Total revenues	2,813	1,073	146	468	65	4,565
Benefits, losses, and loss adjustment expenses	1,929	759	—	933	(1)	3,620
Benefits, losses, and loss adjustment expenses – returns credited on International variable annuities [1]	—	—	—	(1,661)	—	(1,661)
Amortization of deferred policy acquisition costs	315	8	9	222	—	554
Insurance operating costs and other expenses	471	261	108	350	63	1,253
Loss on extinguishment of debt	—	—	—	—	910	910
Interest expense	—	—	—	—	115	115
Restructuring and other costs	5	—	1	14	28	48
Total benefits and expenses	2,720	1,028	118	(142)	1,115	4,839
Income (loss) from continuing operations before income taxes	93	45	28	610	(1,050)	(274)
Income tax expense (benefit)	8	10	10	178	(372)	(166)
Income (loss) from continuing operations	85	35	18	432	(678)	(108)
Add: Income (loss) from discontinued operations, after tax	(1)	—	—	8	—	7
Net income (loss)	84	35	18	440	(678)	(101)
Less: Unlock benefit (charge), after tax	—	—	—	(146)	—	(146)
Less: Restructuring and other costs, after tax	(3)	—	(1)	(9)	(18)	(31)
Less: Loss from discontinued operations, after tax	(1)	—	—	8	—	7
Less: Loss on extinguishment of debt, after tax	—	—	—	—	(587)	(587)
Less: Net realized gains (losses), after tax and DAC, excluded from core earnings	(13)	1	—	387	7	382
Core earnings (losses)	$101	$34	$19	$200	$(80)	$274

[1] Includes dividend income and mark-to-market effects of trading securities supporting the international variable annuity business, which are classified

in net investment income with corresponding amounts credited to policyholders within benefits, losses and loss adjustment expenses.



THE HARTFORD FINANCIAL SERVICES GROUP, INC.
RESULTS BY SEGMENT
($ in millions, except per share data)

	Three Months Ended
	June 30, 2013			June 30, 2012			Change
Property & Casualty Commercial	$	198		$	162		22%
Consumer Markets	15			(47		)	NM
P&C Other Operations	(73		)	(14		)	NM
Total P&C core earnings	140			101			39%
Group Benefits core earnings	37			34			9%
Mutual Funds core earnings	20			19			5%
Sub-total	197			154			28%
Talcott Resolution core earnings	196			200			(2)%
Corporate core losses	(69		)	(80		)	(14)%
CONSOLIDATED CORE EARNINGS	324			274			18%
Add: Unlock benefit (charge), after tax	36			(146		)	NM
Add: Restructuring and other costs, after tax	(12		)	(31		)	NM
Add: Income (loss) from discontinued operations, after tax	(126		)	7			NM
Add: Loss on extinguishment of debt, after tax	—			(587		)	100%
Add: Net reinsurance gain on dispositions, after tax	1			—			100%
Add: Net realized capital gains (losses), after tax and DAC, excluded from core earnings [1]	(413		)	382			NM
Net loss	$	(190	)	$	(101	)	NM
PER SHARE DATA
Diluted earnings (losses) per common share
Core earnings available to common shareholders and assumed conversion of preferred shares	$	0.66		$	0.56		18%
Less: Difference arising from shares used for the denominator between net loss and core earnings	0.03			0.01			NM
Add: Unlock benefit (charge), after tax	0.07			(0.31		)	NM
Add: Restructuring and other costs, after tax	(0.02		)	(0.07		)	(71)%
Add: Income (loss) from discontinued operations, after tax	(0.28		)	0.01			NM
Add: Loss on extinguishment of debt, after tax	—			(1.26		)	100%
Add: Net reinsurance gain on dispositions, after tax	—			—			100%
Add: Net realized capital gains (losses), after tax and DAC, excluded from core earnings [1]	(0.82		)	0.81			NM
Less: Assumed conversion of preferred dividends	—			(0.01		)	(100)%
Net income loss available to common shareholders	$	(0.42	)	$	(0.26	)	62%

[1] NM: 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.”

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 the second quarter of 2013, which is available on The Hartford's website, http://ir.thehartford.com.

Book value per diluted common share excluding accumulated other comprehensive income ("AOCI”): Book value per diluted common share excluding AOCI is a non-GAAP financial measure based on a GAAP financial measure. It is calculated by dividing (a) common stockholders' equity excluding AOCI, after tax, by (b) common shares outstanding and dilutive potential common shares. The Hartford provides book value per diluted common share excluding AOCI to enable investors to analyze the company’s stockholders’ equity excluding the effect of changes in the value of the company’s investment portfolio and other assets due to interest rates, currency and other factors. The Hartford believes book value per diluted common share 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 market value. Book value per diluted common share is the most directly comparable GAAP measure. A reconciliation of book value per diluted common share, including AOCI to book value per diluted common share, excluding AOCI as of June 30, 2013 and December 31, 2012 is set forth below.



	As of
	June 30, 2013	December 31, 2012	Change
Book value per diluted common share, including AOCI	$38.59	$45.80	(16)%
Less: Per diluted share impact of AOCI	$0.15	$5.80	(97)%
Book value per diluted common share, excluding AOCI	$38.44	$40.00	(4)%

Combined ratio before catastrophes and prior year development: Combined ratio before catastrophes and prior year development is a non-GAAP financial measure. Combined ratio is the most directly comparable GAAP measure. The combined ratio is the sum of the loss and loss adjustment expense ratio, the expense ratio and the policyholder dividend ratio. This ratio measures the cost of losses and expenses for every $100 of earned premiums. A combined ratio below 100% demonstrates a positive underwriting result. A combined ratio above 100% indicates a negative underwriting result. The combined ratio before catastrophes and prior year development represents the combined ratio for the current accident year, excluding the impact of catastrophes and prior year development. 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. A reconciliation of the combined ratio to the combined ratio before catastrophes and prior year development is provided in the table below.



	Three Months Ended
	June 30, 2013		June 30, 2012
P&C Commercial
Combined ratio	98.4		100.5
Catastrophe ratio	2.3		2.3
Non-catastrophe prior year development	3.0		3.7
Combined ratio before PYD & catastrophes	93.1		94.5


Consumer Markets
Combined ratio	101.0		112.6
Catastrophe ratio	12.2		22.9
Non-catastrophe prior year development	(0.1	)	(1.5	)
Combined ratio before PYD & catastrophes	88.9		91.3

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 the measure 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 realized capital gains and losses, discontinued operations, loss on extinguishment of debt, gains and losses on business disposition transactions, certain restructuring charges and the impact of Unlocks to deferred policy acquisition costs ("DAC"), sales inducement assets ("SIA"), unearned revenue reserves ("URR") and death and other insurance benefit reserve balances. Some realized capital gains and losses are primarily driven by investment decisions and external economic developments, the nature and timing of which are unrelated to the insurance and underwriting aspects of our business.

Accordingly, core earnings excludes the effect of all realized gains and losses (net of tax and the effects of DAC) that tend to be highly variable from period to period based on capital market conditions. The Hartford believes, however, that some realized capital gains and losses are integrally related to our insurance operations, so core earnings includes net realized gains and losses such as net periodic settlements on credit derivatives and net periodic settlements on the Japan fixed annuity cross-currency swap. These net realized gains and losses are directly related to an offsetting item included in the income statement such as net investment income. Net income (loss) is the most directly comparable U.S. GAAP measure. Core earnings should not be considered as a substitute for net income (loss) and does not reflect the overall profitability of the company’s business. Therefore, the Hartford believes that it is useful for investors to evaluate both net income (loss) and core earnings when reviewing the company’s performance.

A reconciliation of core earnings to net income (loss) for the quarterly periods ended June 30, 2013 and 2012, is included in this press release. A reconciliation of core earnings to net income (loss) 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 June 30, 2013.

Core earnings available to common shareholders per diluted share: Core earnings available to common shareholders per diluted share is calculated based on the non-GAAP financial

measure core earnings. It is calculated by dividing (a) core earnings, by (b) diluted common shares outstanding. The Hartford believes that the measure core earnings available to common shareholders 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) per diluted common share is the most directly comparable GAAP measure. Core earnings available to common shareholders per diluted share should not be considered as a substitute for net income (loss) per diluted share and does not reflect the overall profitability of the company's business.

Therefore, The Hartford believes that it is useful for investors to evaluate both net income (loss)per diluted share and core earnings available to common shareholders per diluted share when reviewing the company's performance. A reconciliation of core earnings available to common shareholders per diluted share to net income (loss) per diluted common share for the quarterly periods ended June 30, 2013 and 2012 is included in this press release under the heading “The Hartford Financial Services Group, Inc. Results By Segment.”

Underwriting gain (loss): The Hartford's management evaluates profitability of the P&C Commercial and Consumer Markets segments primarily on the basis of underwriting gain or loss. Underwriting gain (loss) is a before-tax 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 underwriting results to net income for the quarterly periods ended June 30, 2013 and 2012, is set forth below.



	Three Months Ended
	June 30, 2013	June 30, 2012
P&C Commercial
Net income	$192	$149
Add: Loss from discontinued operations	(2)	(1)
Add: Net realized capital losses	(7)	(16)
Add: Income tax expense	63	48
Less: Net servicing income	7	4
Add: Other income	(30)	(22)
Less: Net investment income	262	239
Underwriting gain (loss)	$25	$(7)

Consumer Markets
Net income (loss)	$15	$(50)
Add: Net realized capital losses	(3)	(2)
Add (Less): Income tax expense (benefit)	2	(32)
Less: Net servicing income	6	4
Add: Other income	(16)	(11)
Less: Net investment income	39	41
Underwriting loss	$(9)	$(114)

SAFE HARBOR STATEMENT

Some of the statements in this release should be considered forward-looking statements as defined in 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 the future. Examples of forward-looking statements include, but are not limited to, statements the company makes regarding future results of operations. The Hartford cautions investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Investors should consider the important risks and uncertainties that may cause actual results to differ. These important risks and uncertainties include: challenges related to the company's current operating environment, including continuing uncertainty about the strength and speed of the recovery in the United States and other key economies and the impact of governmental stimulus and austerity initiatives, sovereign credit concerns, a sustained low interest rate environment, higher tax rates and other potentially adverse developments on financial, commodity and credit markets and consumer spending and investment and the effect of these events on our returns in investment portfolios and our hedging costs associated with our variable annuities business; the risks, challenges and uncertainties associated with our strategic realignment to focus on our property and casualty, group benefits and mutual fund businesses, place our Individual Annuity business into run-off and sell the Individual Life, Woodbury Financial Services, Retirement Plans and U.K. variable annuity businesses, including potential constraints on our ability to deploy capital as and when planned; execution risk related to the continued repositioning of our investment portfolios and refinement of our hedge program for our run-off annuity block; the future capital self-sufficiency of the company's Talcott Resolution businesses; market risks

associated with our business, including changes in interest rates, credit spreads, equity prices, market volatility and foreign exchange rates, and implied volatility levels, as well as continuing uncertainty in key sectors such as the global real estate market; the possibility of unfavorable loss development including with respect to long-tailed exposures; the possibility of a pandemic, earthquake, or other natural or man-made disaster that may adversely affect our businesses; weather and other natural physical events, including the severity and frequency of storms, hail, winter storms, hurricanes and tropical storms, as well as climate change and its potential impact on weather patterns; risk associated with the use analytical models in making decisions in key areas such as underwriting, capital, hedging, reserving, and catastrophe risk management; the uncertain effects of emerging claim and coverage issues; 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; the impact on our statutory capital of various factors, including many that are outside the company's control, which can in turn affect our credit and financial strength ratings, cost of capital, regulatory compliance and other aspects of our business and results; 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; the impact on our investment portfolio if our investment portfolio is concentrated in any particular segment of the economy; volatility in our earnings and potential material changes to our results resulting from our adjustment of our risk management program to emphasize protection of economic value; the potential for differing interpretations of the methodologies, estimations and assumptions that underlie the valuation of the company's financial instruments that could result in changes to investment valuations; the subjective determinations that underlie the company's evaluation of other-than-temporary impairments on available-for-sale securities; losses due to nonperformance or defaults by others; the potential for further acceleration of deferred policy acquisition cost amortization; the potential for further impairments of our goodwill or the potential for changes in valuation allowances against deferred tax assets; the possible occurrence of terrorist attacks and the company's ability to contain its exposure, including the effect of the absence or insufficiency of applicable terrorism legislation on coverage; the difficulty in predicting the company's potential exposure for asbestos and environmental claims; the response of reinsurance companies under reinsurance contracts and the availability, pricing and adequacy of reinsurance to protect the company against losses; actions by our competitors, many of which are larger or have greater financial resources than we do; the company's ability to distribute its products through distribution channels, both current and future; the cost and other effects of increased regulation as a result of the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which, among other effects, vests a Financial Stability Oversight Council with the power to designate “systemically important” institutions, requires central clearing of, and/or imposes margin and capital requirements on, derivatives transactions, and created a new “Federal Insurance Office” within the U.S. Department of the Treasury; unfavorable judicial or legislative developments; the potential effect of other domestic and foreign regulatory developments, including those that could adversely impact the demand for the company's products, operating costs and required capital levels; regulatory limitations on the ability of the company and certain of its subsidiaries to declare and pay dividends; 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 risk that our framework for managing operational risks may not be effective in mitigating material risk and loss to the company; the potential for difficulties arising from outsourcing relationships; the impact of changes in federal or state tax laws; regulatory requirements that could delay, deter or prevent a takeover attempt that shareholders might consider in their best interests; the impact of potential changes in accounting principles and related financial reporting requirements; the company's ability to protect its intellectual property and defend against claims of infringement; the company's ability to implement its capital plan;

and other factors described in such forward-looking statements and other factors described in The Hartford's 2012 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Form 10-Q/A and other filings The Hartford makes with the Securities and Exchange Commission.

Any forward-looking statement made by the company in this release 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.

EX-2.99.2 3 ex992ifs063013.htm EXHIBIT Ex 99.2 IFS 06.30.13

INVESTOR FINANCIAL SUPPLEMENT

June 30, 2013

THE HARTFORD FINANCIAL SERVICES GROUP, INC.




	As of July 24, 2013
Address:
One Hartford Plaza		A.M. Best	Fitch	Standard & Poor’s	Moody’s
Hartford, CT 06155	Insurance Financial Strength Ratings:
	Hartford Fire Insurance Company	A	A+	A	A2
	Hartford Life Insurance Company	A-	A-	BBB+	A3
Internet address:	Hartford Life and Accident Insurance Company	A-	A-	A-	A3
http://www.thehartford.com	Hartford Life and Annuity Insurance Company	A-	A-	BBB+	Baa2

	Other Ratings:
	The Hartford Financial Services Group, Inc.:
Contacts:	Senior debt	bbb+	BBB	BBB	Baa3
Sabra Purtill	Commercial paper	AMB-2	F2	A-2	P-3
Senior Vice President
Investor Relations
Phone (860) 547-8691


Sean Rourke	TRANSFER AGENT
Assistant Vice President	Shareholder correspondence should be mailed to:	Overnight correspondence should be mailed to:
Investor Relations	Computershare	Computershare
Phone (860) 547-5688	P.O. Box 43006	250 Royall Street
	Providence, RI 02940-3006	Canton, MA 02021
	Phone (877) 272-7740

COMMON STOCK

Common stock and warrants of The Hartford Financial Services Group, Inc. are traded on the New York Stock Exchange under the symbols “HIG” and "HIG/WS", 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 and Form 10-Q/A.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTOR FINANCIAL SUPPLEMENT

TABLE OF CONTENTS



	Basis of Presentation	i

CONSOLIDATED	Consolidated Financial Results	1	MUTUAL FUNDS	Income Statements	20
	Operating Results by Segment	2		Supplemental Data - Asset Value Rollforward - Assets Under Management - By Distribution Channel	21
	Consolidated Statements of Operations	3		Supplemental Data - Asset Value Rollforward - Assets Under Management - By Asset Class	22
	Consolidating Balance Sheets	4
	Capital Structure	5
	Statutory Capital and Surplus to GAAP Stockholders’ Equity Reconciliation	6
	Accumulated Other Comprehensive Income (Loss)	7	TALCOTT
	Deferred Policy Acquisition Costs and Present Value of Future Profits	8	RESOLUTION	Financial Highlights	23
				Supplemental Data	24
				U.S. Annuity
				Supplemental Data - Account Value Rollforward	25
				Japan Annuity
PROPERTY & CASUALTY	Income Statements	9		Supplemental Data - Account Value Rollforward	26
	Underwriting Ratios	10		Supplemental Data - Annuity Death and Living Benefits	27
	P&C Commercial
	Underwriting Results	11
	Underwriting Ratios	12
	Supplemental Data	13
	Consumer Markets		CORPORATE	Income Statements	28
	Underwriting Results	14
	Underwriting Ratios	15
	Supplemental Data	16
	P&C Other Operations		INVESTMENTS	Investment Earnings Before-tax (Consolidated)	29
	Underwriting Results	17		Investment Earnings Before-tax (Property & Casualty)	30
				Net Investment Income by Segment	31
				Components of Net Realized Capital Gains (Losses)	32
GROUP BENEFITS	Income Statements	18		Composition of Invested Assets	33
	Supplemental Data	19		Invested Asset Exposures	34

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

BASIS OF PRESENTATION

DEFINITIONS AND PRESENTATION

All amounts are in millions, except for per share and ratio information unless otherwise stated.

The Hartford Financial Services Group, Inc. (the "Company", "we", or "our") currently conducts business principally in six reporting segments, Property & Casualty Commercial, Consumer Markets, Property & Casualty Other Operations, Group Benefits, Mutual Funds and Talcott Resolution, as well as a Corporate category. In June 2013, the Company announced the signing of a definitive agreement to sell the U.K. variable annuity business of Hartford Life International Limited ("HLIL"), an indirect wholly-owned subsidiary. Accordingly, the assets and liabilities of the Company's U.K variable annuity business are presented as held for sale in the Consolidating Balance Sheets as of June 30, 2013 included herein. In addition, the results of operations of the Company's U.K. variable annuity business have been retrospectively reclassified from continuing operations and included as a discontinued operation in the Company's results of operations for all periods presented herein. Financial results for the Company's U.K. variable annuities business, as well as the former Retirement Plans and Individual Life businesses are reported in the Talcott Resolution segment which also includes U.S. Annuity, International Annuity, Institutional and Private Placement Life Insurance.

Property & Casualty ("P&C") is organized into three reporting segments; P&C Commercial, Consumer Markets and P&C Other Operations. P&C Commercial provides workers' compensation, property, automobile, liability and umbrella coverages under several different products, primarily throughout the United States (“U.S.”), within its standard commercial lines, which consists of the Company's small commercial and middle market lines of business. Additionally, a variety of customized insurance products and risk management services including workers' compensation, automobile, general liability, professional liability, fidelity, surety, livestock and specialty casualty coverages are offered through the segment's specialty lines. Consumer Markets provides standard automobile, homeowners and home-based business coverages to individuals across the U.S., including a special program designed exclusively for members of AARP. Consumer Markets also operates a member contact center for health insurance products offered through the AARP Health program. P&C Other Operations includes certain property and casualty operations, currently managed by the Company, that have discontinued writing new business and substantially all of the Company's asbestos and environmental exposures.

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

Mutual Funds offers mutual funds for retail accounts such as retirement plans and 529 college savings plans and provides investment-management and administrative services such as product design, implementation and oversight.

Corporate includes the Company's debt financing and related interest expense, as well as other capital raising activities, certain purchase accounting adjustments and other charges not allocated to the segments.

The consolidating balance sheets and certain balance sheet measures incorporated herein are presented as follows: Life consists of Talcott Resolution, Mutual Funds, Group Benefits, and an Other category. P&C consists of P&C Commercial, Consumer Markets and P&C Other Operations. Corporate consists of the Corporate category.

Certain operating and statistical measures have been incorporated herein to provide supplemental data that indicate current trends in the Company's business. These measures include sales, deposits, net flows, account value, insurance in-force, premium retention, renewal written price increases and policy count retention. Premium retention is defined as renewal premium written in the current period divided by total premium written in the prior period. Renewal written price increases represent the combined effect of rate changes and amount of insurance per unit of exposure since the prior year. Policy count retention represents the ratio of the number of policies renewed during the period divided by the number of policies from the previous policy term period.

The Company, along with others in the property and casualty insurance industry, uses underwriting ratios as measures of performance. The loss and loss adjustment expense ratio is the ratio of losses and loss adjustment expenses to earned premiums. The expense ratio is the ratio of underwriting expenses (amortization of deferred policy acquisition costs, as well as other underwriting expenses) to earned premiums. The policyholder dividend ratio is the ratio of policyholder dividends to earned premiums. The combined ratio is the sum of the loss and loss adjustment expense ratio, the expense ratio and the policyholder dividend ratio. These ratios are relative measurements that describe the related cost of losses and expenses for every $100 of earned premiums. A combined ratio below 100 demonstrates underwriting profit; a combined ratio above 100 demonstrates underwriting losses. The catastrophe ratio (a component of the loss ratio) represents the ratio of catastrophe losses to earned premiums.

The Company, along with others in the life insurance industry, uses underwriting ratios as measures of the Group Benefits segment's performance. The loss ratio is the ratio of total benefits, losses and loss adjustment expenses, excluding buyouts, to total premiums and other considerations excluding buyout premiums. The expense ratio is the ratio of insurance operating costs and other expenses to total premiums and other considerations excluding buyout premiums.

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

Mutual fund assets are an internal measure of assets under management used by the Company because a portion of revenues are based upon asset levels. Mutual funds assets are not included on the balance sheet.

Return on assets (“ROA”) is calculated using annualized earnings divided by a two-point average of assets under management.

Full surrender rates are an internal measure of contract surrenders calculated using annualized full surrenders divided by a two-point average of annuity account values. The full surrender rate represents full contract liquidation and excludes partial withdrawals.

Assets under management (“AUM”) include account values and mutual funds assets. AUM is a measure used by the Company because a significant portion of the Company's revenues are based upon asset values. These revenues increase or decrease with a rise or fall in the amount of account value whether caused by changes in capital markets or through net flows.

Yields are calculated using annualized net investment income (excluding income related to equity securities, trading) divided by the monthly average invested assets at cost, amortized cost, or adjusted carrying value, as applicable, excluding equity securities, trading, and consolidated variable interest entity non-controlling interests.

NM-Not meaningful means increases or decreases greater than or equal to 200%, or changes from a net gain to a net loss position, or vice versa.

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 for the periods presented herein. 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.

The Company uses the non-GAAP financial measure core earnings as an important measure of the Company's operating performance. We believe 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 realized capital gains and losses, discontinued operations, loss on extinguishment of debt, gains and losses from disposal of businesses, certain restructuring charges and the impact of Unlocks to deferred policy acquisition costs (“DAC”), sales inducement assets ("SIA"), unearned revenue reserve ("URR") and death and other insurance benefit reserve balances. Some realized capital gains and losses are primarily driven by investment decisions and external economic developments, the nature and timing of which are unrelated to the insurance and underwriting aspects of our business. Accordingly, core earnings excludes the effect of all realized gains and losses (after tax and the effects of DAC) that tend to be highly variable from period to period based on capital market conditions. We believe, however, that some realized capital gains and losses are integrally related to our insurance operations, so core earnings includes net realized gains and losses such as net periodic settlements on credit derivatives and net periodic settlements on the Japan fixed annuity cross-currency swap. These net realized gains and losses are directly related to an offsetting item included in the income statement such as net investment income. Net income is the most directly comparable GAAP measure. Core earnings should not be considered as a substitute for net income and does not reflect the overall profitability of the Company's business. Therefore, we believe that it is useful for investors to evaluate both net income and core earnings when reviewing the Company's performance. A reconciliation of net income to core earnings for the periods presented herein is set forth on page 2.

Core earnings per share is calculated based on the non-GAAP financial measure core earnings. We believe that the measure core earnings per share provides investors with a valuable measure of the Company's operating performance for many of the same reasons applicable to its underlying measure, core earnings. Net income per share is the most directly comparable GAAP measure. Core earnings per share should not be considered as a substitute for net income per share and does not reflect the overall profitability of the Company's business. Therefore, we believe that it is useful for investors to evaluate both net income per share and core earnings per share when reviewing our performance.

Written premiums is a statutory accounting financial measure used by the Company as an important indicator of the operating performance of the Company's P&C Commercial and Consumer Markets operations. Because written premiums represents the amount of premium charged for policies issued, net of reinsurance, during a fiscal period, the Company believes it is useful to investors because it reflects current trends in the Company's sale of property and casualty insurance products. Earned premiums, the most directly comparable GAAP measure, represents all premiums that are recognized as revenues during a fiscal period. The difference between written premiums and earned premiums is attributable to the change in unearned premium reserves. A reconciliation of written premiums to earned premiums for P&C Commercial and Consumer Markets is set forth at pages 11 and 14, respectively.

The Company's management evaluates profitability of the P&C businesses primarily on the basis of underwriting gain (loss). Underwriting gain (loss) is a before-tax measure that represents earned premiums less incurred losses, loss adjustment expenses and underwriting expenses. Underwriting gain (loss) is influenced significantly by earned premium growth and the adequacy of the Company's pricing. Underwriting profitability over time is also greatly influenced by the Company's underwriting discipline, which seeks to manage exposure to loss through favorable risk selection and diversification, its management of claims, its use of reinsurance and its ability to manage its expense ratio, which it accomplishes through economies of scale and its management of acquisition costs and other underwriting expenses. We believe that underwriting gain (loss) provides investors with a valuable measure of before-tax profitability derived from underwriting activities, which are managed separately from the Company's investing activities.

A catastrophe is a severe loss, resulting from natural or manmade events, including risks such as fire, earthquake, windstorm, explosion, terrorist attack and similar events. Each catastrophe has unique characteristics. Catastrophes are not predictable as to timing or loss amount in advance, and therefore their effects are not included in earnings or losses and loss adjustment expense reserves prior to occurrence. the Company believes that a discussion of the effect of catastrophes is meaningful for investors to understand the variability of periodic earnings.

ROA, core earnings is a non-GAAP financial measure that the Company uses to evaluate, and believes is an important measure of, certain of the segment's operating performance. ROA is the most directly comparable U.S. GAAP measure. We believe that ROA, core earnings, provides investors with a valuable measure of the performance of certain of the Company's on-going businesses because it reveals trends in our businesses that may be obscured by the effect of realized gains (losses). ROA, core earnings, should not be considered as a substitute for ROA and does not reflect the overall profitability of our businesses. Therefore, we believe it is important for investors to evaluate both ROA, core earnings, and ROA when reviewing the Company's performance.

After-tax margin, excluding buyouts and realized gains (losses), is a non-GAAP financial measure that the Company uses to evaluate, and believes is an important measure of, the Group Benefits segment's operating performance. After-tax margin is the most directly comparable U.S. GAAP measure. We believe that after-tax margin, excluding buyouts and realized gains (losses), provides investors with a valuable measure of the performance of certain of the Company's on-going businesses because it reveals trends in those businesses that may be obscured by the effect of realized gains (losses). After-tax margin, excluding buyouts and realized gains (losses), should not be considered as a substitute for after-tax margin and does not reflect the overall profitability of our businesses. Therefore, we believe it is important for investors to evaluate both after-tax margin, excluding buyouts and realized gains (losses), and after-tax margin when reviewing the Company's performance. After-tax margin, excluding buyouts and realized gains (losses) is calculated by dividing core earnings excluding buyouts and realized gains (losses) by total core revenues excluding buyouts and realized gains (losses).

Book value per common share excluding AOCI is calculated based upon a non-GAAP financial measure. It is calculated by dividing (a) common stockholders' equity, excluding AOCI, after tax, by (b) common shares outstanding. The Company provides book value per common share excluding AOCI to enable investors to analyze the amount of the Company's net worth that is primarily attributable to the Company's business operations. We believe book value per common share, 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. Book value per common share is the most directly comparable GAAP measure. A reconciliation of book value per common share to book value per common share, excluding AOCI, for the periods presented herein is set forth at page 1.

Book value per diluted share, excluding AOCI, is calculated based upon a non-GAAP financial measure. It is calculated by dividing (a) total stockholders' equity, excluding AOCI, after tax, by (b) common shares outstanding and dilutive potential common shares. The Company provides book value per diluted share excluding AOCI to enable investors to analyze the amount of the Company's net worth that is primarily attributable to the Company's business operations. We believe book value per diluted share, 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. Book value per diluted share is the most directly comparable GAAP measure. A reconciliation of book value per diluted share to book value per diluted share, excluding AOCI, for the periods presented herein is set forth at page 1.

The Company provides different measures of the return on common equity (“ROE”). ROE (core earnings last twelve months to common equity, excluding AOCI), is calculated based on non-GAAP financial measures. ROE (core earnings last twelve months to common equity, excluding AOCI) is calculated by dividing (a) core earnings for the prior four fiscal quarters by (b) average common stockholders' equity, excluding AOCI. When calculating ROE, the Mandatory Convertible preferred stock (“MCP”) is included in average common stockholders' equity and MCP dividends are added back to net income (loss) available to common shareholders and core earnings (losses) available to common shareholders. The Company provides to investors return-on-equity measures based on its non-GAAP core earnings financial measures for the reasons set forth in the related discussion above. The Company excludes AOCI in the calculation of these return-on-equity measures 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. ROE (net income last twelve months to common equity, including AOCI) is the most directly comparable GAAP measure.

iii

CONSOLIDATED

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATED FINANCIAL RESULTS



	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Jun. 30 2013			Jun. 30 2012
HIGHLIGHTS
Net income (loss)	$	(190	)	$	(241	)	$	(46	)	$	13		$	(101	)	$	96		$	(431	)	$	(5	)
Core earnings [1]	$	324		$	457		$	256		$	433		$	274		$	423		$	781		$	697
Total revenues [1]	$	5,465		$	9,043		$	7,700		$	6,332		$	4,565		$	7,525		$	14,508		$	12,090
Total assets	$	294,833		$	297,021		$	298,513		$	308,721		$	303,977		$	310,548
PER SHARE AND SHARES DATA
Basic earnings (losses) per common share
Net income (loss) available to common shareholders	$	(0.42	)	$	(0.58	)	$	(0.13	)	$	0.01		$	(0.26	)	$	0.20		$	(0.99	)	$	(0.06	)
Core earnings available to common shareholders	$	0.72		$	1.02		$	0.56		$	0.97		$	0.60		$	0.94		$	1.74		$	1.54
Diluted earnings (losses) per common share [2]
Net income (loss) available to common shareholders [3]	$	(0.42	)	$	(0.58	)	$	(0.13	)	$	0.01		$	(0.26	)	$	0.18		$	(0.99	)	$	(0.06	)
Core earnings available to common shareholders	$	0.66		$	0.93		$	0.52		$	0.90		$	0.56		$	0.86		$	1.58		$	1.43
Weighted average common shares outstanding (basic)	451.4			436.3			436.2			435.8			438.2			440.7			443.8			439.4
Dilutive effect of stock compensation	4.2			3.9			3.0			2.1			1.5			1.9			4.0			1.8
Dilutive effect of warrants	33.4			31.7			28.7			23.8			25.1			26.4			32.6			25.7
Weighted average common shares outstanding and dilutive potential common shares (diluted), before assumed conversion of preferred shares	489.0			471.9			467.9			461.7			464.8			469.0			480.4			466.9
Dilutive effect of assumed conversion of preferred shares [3] [4]	—			21.2			21.0			21.0			21.0			20.9			12.4			21.0
Weighted average common shares outstanding and dilutive potential common shares (diluted) and assumed conversion of preferred shares	489.0			493.1			488.9			482.7			485.8			489.9			492.8			487.9
Common shares outstanding	453.9			435.3			436.3			436.1			435.6			440.9			453.9			435.6
Book value per common share	$	41.89		$	46.78		$	50.17		$	51.42		$	49.14		$	46.99
Per common share impact of accumulated other comprehensive income ("AOCI")	$	0.16		$	3.79		$	6.51		$	7.55		$	5.18		$	3.01
Book value per common share (excluding AOCI)	$	41.73		$	42.99		$	43.66		$	43.87		$	43.96		$	43.98
Book value per diluted share	$	38.59		$	42.43		$	45.80		$	47.34		$	45.59		$	43.25
Per diluted share impact of AOCI	$	0.15		$	3.34		$	5.80		$	6.79		$	4.68		$	2.70
Book value per diluted share (excluding AOCI)	$	38.44		$	39.09		$	40.00		$	40.55		$	40.91		$	40.55
Common shares outstanding and dilutive potential common shares	492.7			493.0			490.1			485.5			481.7			491.9
FINANCIAL RATIOS
ROE (net income (loss) last 12 months to common stockholder equity including AOCI)	(2.3		)%	(1.8		)%	(0.2		)%	0.6		%	0.8		%	1.5		%
ROE (core earnings last 12 months to common stockholder equity excluding AOCI)	7.6		%	7.2		%	7.0		%	7.1		%	6.3		%	5.0		%
Debt to capitalization, including AOCI	25.8		%	23.2		%	24.1		%	23.7		%	24.5		%	22.6		%
Annualized investment yield, after tax	3.1		%	3.0		%	2.9		%	2.9		%	3.1		%	3.0		%	3.1		%	3.0		%


[1]	All applicable prior period financial information has been retroactively reclassified for discontinued operations. For further information regarding discontinued operations, refer to Basis of Presentation on page i.


[2]	As a result of anti-dilutive impact, in periods of a loss, weighted average common shares outstanding (basic) are used in the calculation of diluted earnings per share.


[3]	The impact of applying the "if-converted" method to the The Hartford's mandatory convertible preferred stock was anti-dilutive to net income available to common shareholders for the three months ended September 30, 2012 and therefore these shares were excluded from the calculation.


[4]	In April 2013, The Hartford's mandatory convertible preferred stock converted to 21.2 million shares of common stock.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

OPERATING RESULTS BY SEGMENT



	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Jun. 30 2013			Jun. 30 2012
Core earnings (losses):
P&C Commercial	$	198		$	224		$	26		$	161		$	162		$	162		$	422		$	324
Consumer Markets	15			73			11			93			(47		)	102			88			55
P&C Other Operations	(73		)	21			17			21			(14		)	20			(52		)	6
Total Property & Casualty	$	140		$	318		$	54		$	275		$	101		$	284		$	458		$	385
Group Benefits	37			30			39			23			34			5			67			39
Mutual Funds	20			20			16			19			19			20			40			39
Sub-total	197			368			109			317			154			309			565			463
Talcott Resolution [3]	196			162			202			192			200			216			358			416
Corporate	(69		)	(73		)	(55		)	(76		)	(80		)	(102		)	(142		)	(182		)
CONSOLIDATED CORE EARNINGS [3]	$	324		$	457		$	256		$	433		$	274		$	423		$	781		$	697
Add: Unlock benefit (charge), after-tax [1]	$	36		$	(541	)	$	39		$	(79	)	$	(146	)	$	214		$	(505	)	$	68
Add: Restructuring and other costs, after tax	(12		)	(12		)	(58		)	(34		)	(31		)	(6		)	(24		)	(37		)
Add: Income (loss) from discontinued operations, after tax [3]	(126		)	(1		)	(1		)	20			7			36			(127		)	43
Add: Loss on extinguishment of debt, after tax	—			(138		)	—			—			(587		)	—			(138		)	(587		)
Add: Net reinsurance gain (loss) on dispositions, after tax	1			(25		)	—			(388		)	—			—			(24		)	—
Add: Net realized capital gains (losses), after tax and DAC, excluded from core earnings	(413		)	19			(282		)	61			382			(571		)	(394		)	(189		)
Net income (loss)	$	(190	)	$	(241	)	$	(46	)	$	13		$	(101	)	$	96		$	(431	)	$	(5	)
PER SHARE DATA
Diluted earnings (losses) per common share:
Core earnings available to common shareholders [3]	$	0.66		$	0.93		$	0.52		$	0.90		$	0.56		$	0.86		$	1.58		$	1.43
Net income (loss) available to common shareholders	$	(0.42	)	$	(0.58	)	$	(0.13	)	$	0.01		$	(0.26	)	$	0.18		$	(0.99	)	$	(0.06	)

[1]The Unlock benefit (charge) recorded in the periods presented affected each income statement line item as follows:



	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Jun. 30 2013			Jun. 30 2012
Earned premiums	$	(1	)	$	(1	)	$	(5	)	$	(3	)	$	1		$	—		$	(2	)	$	1
Fee income	1			2			7			14			7			(2		)	3			5
Benefits, losses and loss adjustment expenses	(72		)	(71		)	(160		)	56			143			(208		)	(143		)	(65		)
Amortization of DAC	17			904			100			79			89			(124		)	921			(35		)
Income tax expense (benefit)	19			(291		)	23			(45		)	(78		)	116			(272		)	38
Unlock benefit (charge), after tax [2]	$	36		$	(541	)	$	39		$	(79	)	$	(146	)	$	214		$	(505	)	$	68

[2] The Unlock charge in the first quarter of 2013 relates primarily to costs associated with expanding the Japan variable annuity hedging program in the

Talcott Resolution - International Annuity segment resulting in elimination of estimated future gross profits on the Japan annuity block.

[3] All applicable prior period financial information has been retroactively reclassified for discontinued operations. For further information regarding discontinued operations, refer to Basis of Presentation on page i.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS



	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Jun. 30 2013			Jun. 30 2012
Earned premiums	$	3,293		$	3,252		$	3,388		$	3,401		$	3,400		$	3,442		$	6,545		$	6,842
Fee income	699			699			1,048			1,109			1,105			1,124			1,398			2,229
Net investment income (loss):
Securities available-for-sale and other	867			856			1,038			1,028			1,094			1,067			1,723			2,161
Equity securities, trading [1]	1,189			2,562			2,630			635			(1,662		)	2,761			3,751			1,099
Total net investment income (loss)	2,056			3,418			3,668			1,663			(568		)	3,828			5,474			3,260
Realized capital gains (losses):
Total other-than-temporary impairment (“OTTI”) losses [2]	(17		)	(33		)	(188		)	(59		)	(106		)	(36		)	(50		)	(142		)
OTTI losses recognized in other comprehensive income	5			12			3			22			8			7			17			15
Net OTTI losses recognized in earnings	(12		)	(21		)	(185		)	(37		)	(98		)	(29		)	(33		)	(127		)
Net realized capital gains on business dispositions [3]	1			1,574			—			—			—			—			1,575			—
Other net realized capital gains (losses)	(637		)	53			(293		)	132			665			(899		)	(584		)	(234		)
Total net realized capital gains (losses)	(648		)	1,606			(478		)	95			567			(928		)	958			(361		)
Other revenues	65			68			74			64			61			59			133			120
Total revenues	5,465			9,043			7,700			6,332			4,565			7,525			14,508			12,090
Benefits, losses and loss adjustment expenses	2,886			2,664			3,321			3,270			3,620			3,037			5,550			6,657
Benefits, losses and loss adjustment expenses—returns credited on international variable annuities [1]	1,188			2,562			2,630			635			(1,661		)	2,759			3,750			1,098
Amortization of DAC	391			1,336			547			566			554			321			1,727			875
Insurance operating costs and other expenses	1,101			1,006			1,244			1,214			1,253			1,294			2,107			2,547
Loss on extinguishment of debt	—			213			—			—			910			—			213			910
Reinsurance loss on dispositions [3]	—			1,574			—			533			—			—			1,574			—
Interest expense	100			107			109			109			115			124			207			239
Restructuring and other costs	19			18			89			53			48			9			37			57
Total benefits and expenses	5,685			9,480			7,940			6,380			4,839			7,544			15,165			12,383
Loss from continuing operations before income taxes	(220		)	(437		)	(240		)	(48		)	(274		)	(19		)	(657		)	(293		)
Income tax benefit	(156		)	(197		)	(195		)	(41		)	(166		)	(79		)	(353		)	(245		)
Income (loss) from continuing operations, after tax	(64		)	(240		)	(45		)	(7		)	(108		)	60			(304		)	(48		)
Income (loss) from discontinued operations, after tax [5]	(126		)	(1		)	(1		)	20			7			36			(127		)	43
Net income (loss)	$	(190	)	$	(241	)	$	(46	)	$	13		$	(101	)	$	96		$	(431	)	$	(5	)
Less: Unlock benefit (charge), after tax [4]	36			(541		)	39			(79		)	(146		)	214			(505		)	68
Less: Restructuring and other costs, after tax	(12		)	(12		)	(58		)	(34		)	(31		)	(6		)	(24		)	(37		)
Less: Income (loss) from discontinued operations, after tax [5]	(126		)	(1		)	(1		)	20			7			36			(127		)	43
Less: Loss on extinguishment of debt, after tax	—			(138		)	—			—			(587		)	—			(138		)	(587		)
Less: Net reinsurance gains (losses) on disposition, after tax [3]	1			(25		)	—			(388		)	—			—			(24		)	—
Less: Net realized capital gains (losses), after tax and DAC, excluded from core earnings	(413		)	19			(282		)	61			382			(571		)	(394		)	(189		)
Core earnings	$	324		$	457		$	256		$	433		$	274		$	423		$	781		$	697


[1]	Includes investment income and mark-to-market effects of equity securities, trading, supporting the international variable annuity business, which are classified in net investment income with corresponding amounts credited to policyholders within benefits, losses and loss adjustment expenses.


[2]	Includes $177 of intent-to-sell impairment losses relating to the sales of the Retirement Plans and Individual Life businesses for the three months ended December 31, 2012.


[3]	All amounts pertain to the sales of the Retirement Plans and Individual Life businesses; net reinsurance losses on disposition, after tax for the three months ended March 31, 2013 and September 30, 2012 pertain to the Retirement Plans and Individual Life business, respectively.


[4]	For income statement line item Unlock impact, refer to footnote [1] on page 2.


[5]	For further information, see Talcott Resolution Financial Highlights on page 23. All applicable prior period financial information has been retroactively reclassified for discontinued operations. For further information regarding discontinued operations, refer to Basis of Presentation on page i.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATING BALANCE SHEETS

AS OF JUNE 30, 2013 and DECEMBER 31, 2012



	LIFE [1]				PROPERTY & CASUALTY [1]				CORPORATE [1]						CONSOLIDATED
	Jun. 30 2013		Dec. 31 2012		Jun. 30 2013		Dec. 31 2012		Jun. 30 2013			Dec. 31 2012			Jun. 30 2013		Dec. 31 2012
Investments
Fixed maturities, available-for-sale, at fair value	$	38,933	$	58,889	$	24,865	$	26,491	$	1,083		$	542		$	64,881	$	85,922
Fixed maturities, at fair value using the fair value option	984		1,075		13		12		—			—			997		1,087
Equity securities, trading, at fair value	23,362		28,933		—		—		—			—			23,362		28,933
Equity securities, available-for-sale, at fair value	478		512		237		263		119			115			834		890
Mortgage loans	4,304		5,661		1,107		1,050		—			—			5,411		6,711
Policy loans, at outstanding balance	1,412		1,997		—		—		—			—			1,412		1,997
Limited partnerships and other alternative investments	1,478		1,452		1,623		1,563		—			—			3,101		3,015
Other investments	546		961		82		130		20			23			648		1,114
Short-term investments	2,511		2,947		1,220		802		1,143			832			4,874		4,581
Total investments	$	74,008	$	102,427	$	29,147	$	30,311	$	2,365		$	1,512		$	105,520	$	134,250
Cash	1,556		2,231		178		190		6			—			1,740		2,421
Premiums receivable and agents’ balances	292		344		3,289		3,198		—			—			3,581		3,542
Reinsurance recoverables	19,977		1,912		2,743		2,754		—			—			22,720		4,666
DAC	1,921		5,177		551		548		—			—			2,472		5,725
Deferred income taxes	1,458		55		742		395		1,532			1,492			3,732		1,942
Goodwill	149		236		119		119		230			299			498		654
Property and equipment, net	281		348		621		620		9			9			911		977
Other assets	1,841		1,600		1,559		967		332			200			3,732		2,767
Assets held for sale [1]	1,941		—		—		—		—			—			1,941		—
Separate account assets	147,986		141,569		—		—		—			—			147,986		141,569
Total assets	$	251,410	$	255,899	$	38,949	$	39,102	$	4,474		$	3,512		$	294,833	$	298,513
Future policy benefits, unpaid losses and loss adjustment expenses	19,834		19,276		21,714		21,716		—			—			$	41,548	$	40,992
Other policyholder funds and benefits payable	40,597		41,979		—		—		—			—			40,597		41,979
Other policyholder funds and benefits payable— International variable annuities	23,351		28,922		—		—		—			—			23,351		28,922
Unearned premiums	165		174		5,133		4,972		(1		)	(1		)	5,297		5,145
Debt	—		—		—		—		6,625			7,126			6,625		7,126
Consumer notes	110		161		—		—		—			—			110		161
Other liabilities	4,754		6,800		2,033		1,675		1,857			1,697			8,644		10,172
Liabilities held for sale [1]	1,662		—		—		—		—			—			1,662		—
Separate account liabilities	147,986		141,569		—		—		—			—			147,986		141,569
Total liabilities	$	238,459	$	238,881	$	28,880	$	28,363	$	8,481		$	8,822		$	275,820	$	276,066
Common equity, excluding AOCI	12,047		14,176		9,491		9,332		(2,599		)	(4,460		)	18,939		19,048
Preferred stock [2]	—		—		—		—		—			556			—		556
AOCI, after tax	904		2,842		578		1,407		(1,408		)	(1,406		)	74		2,843
Total stockholders’ equity	12,951		17,018		10,069		10,739		(4,007		)	(5,310		)	19,013		22,447
Total liabilities and equity	$	251,410	$	255,899	$	38,949	$	39,102	$	4,474		$	3,512		$	294,833	$	298,513


[1]	For a description of Life, Property & Casualty and Corporate, and information regarding discontinued operations, refer to Basis of Presentation on page i.


[2]	The preferred stock converted to common equity on April 1, 2013.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CAPITAL STRUCTURE



	Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012
DEBT
Short-term debt	$	520		$	520		$	320		$	320		$	—		$	—
Senior notes	5,005			4,707			5,706			5,706			6,025			4,481
Junior subordinated debentures	1,100			1,100			1,100			1,100			1,100			1,739
Total debt [1][2]	$	6,625		$	6,327		$	7,126		$	7,126		$	7,125		$	6,220
STOCKHOLDERS’ EQUITY
Common stockholders' equity, excluding AOCI	$	18,939		$	18,715		$	19,048		$	19,131		$	19,149		$	19,390
Preferred stock	—			556			556			556			556			556
AOCI	74			1,649			2,843			3,295			2,256			1,328
Total stockholders’ equity	$	19,013		$	20,920		$	22,447		$	22,982		$	21,961		$	21,274
CAPITALIZATION
Total capitalization, including AOCI, after tax	$	25,638		$	27,247		$	29,573		$	30,108		$	29,086		$	27,494
Total capitalization, excluding AOCI, after tax	$	25,564		$	25,598		$	26,730		$	26,813		$	26,830		$	26,166
DEBT TO CAPITALIZATION RATIOS [2]
Total debt to capitalization, including AOCI	25.8		%	23.2		%	24.1		%	23.7		%	24.5		%	22.6		%
Total debt to capitalization, excluding AOCI	25.9		%	24.7		%	26.7		%	26.6		%	26.6		%	23.8		%
Total rating agency adjusted debt to capitalization [3] [4]	29.3		%	26.6		%	27.4		%	26.3		%	27.3		%	26.5		%

[1]

On April 18, 2013, the Company issued $300 of 4.3% senior notes due in 2043. On March 26, 2013, the Company repurchased approximately $800 of outstanding senior debentures. On April 5, 2012, the Company issued $1.55 billion aggregate principal amount of senior notes and $600 of junior subordinated debentures. The Company used the proceeds from the 2012 debt offering to repurchase all of the outstanding 10% fixed to floating rate junior subordinated debentures due 2068 with a $1.75 billion aggregate principal amount held by Allianz SE for $2.125 billion.


[2]	The Hartford excludes consumer notes from total debt for capital structure analysis. Consumer notes were $110, $132, $161, $190 and $254 as of June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012, and June 30, 2012, respectively.

[3]

The leverage calculation reflects adjustments related to the Company’s defined benefit plans unfunded pension liability and the Company's rental expense on operating leases for total adjustments of $1.6 billion, $1.6 billion, $1.7 billion, $1.5 billion and $1.5 billion for the three months ended June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012, and June 30, 2012, respectively.


[4]	Reflects 25% equity credit for the junior subordinated debentures and the discount value of the debentures issued in October 2008. Reflects 100% equity credit for the MCP stock which converted to common equity on April 1, 2013.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

STATUTORY CAPITAL AND SURPLUS TO GAAP STOCKHOLDERS’ EQUITY RECONCILIATION



	Jun. 30 2013			[3]	Dec. 31 2012			[3]
U.S. statutory net income
Property & Casualty [1]	$	611			$	883
Life [1] [2]	$	2,072			$	592
U.S. statutory capital and surplus - Property & Casualty	$	7,809			$	7,645
U.S. GAAP adjustments:
DAC	551				548
Benefit reserves	(50		)		(53		)
Unrealized gains on investments, after tax	515				1,314
Goodwill	119				119
Non-admitted assets	886				914
Other, net	239				252
U.S. GAAP stockholders’ equity - Property & Casualty	$	10,069			$	10,739
U.S. statutory capital and surplus - Life	$	6,884			$	6,410
U.S. GAAP adjustments:
DAC	1,921				5,177
Deferred taxes	83				(1,610		)
Benefit reserves	(697		)		(1,014		)
Unrealized gains on investments, after tax	1,109				4,071
Asset valuation reserve and interest maintenance reserve	878				934
Goodwill	149				236
Other, net	101				(231		)
Investment in foreign and non-insurance subsidiaries	2,523				3,045
U.S. GAAP stockholders’ equity - Life	$	12,951			$	17,018


[1]	For a description of Property & Casualty and Life, refer to the Basis of Presentation on page i.


[2]	Statutory net income does not include capital gains and losses on hedging programs that may be accounted for as realized capital gains (losses) under U.S. GAAP.


[3]	Statutory net income is for the six months ended June 30, 2013 and the year ended December 31, 2012.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)



	THREE MONTHS ENDED
	Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012
Fixed maturities net unrealized gain	$	1,141		$	2,484		$	3,402		$	3,373		$	2,507		$	1,793
Equities net unrealized gain (loss)	21			45			16			8			(8		)	(41		)
OTTI losses recognized in AOCI	(23		)	(32		)	(47		)	(59		)	(94		)	(107		)
Net deferred gain on cash flow hedging instruments	188			320			428			543			544			463
Total net unrealized gain	$	1,327		$	2,817		$	3,799		$	3,865		$	2,949		$	2,108
Foreign currency translation adjustments	92			186			406			582			494			438
Pension and other postretirement adjustment	(1,345		)	(1,354		)	(1,362		)	(1,152		)	(1,187		)	(1,218		)
Total AOCI	$	74		$	1,649		$	2,843		$	3,295		$	2,256		$	1,328

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

DEFERRED POLICY ACQUISITION COSTS AND PRESENT VALUE OF FUTURE PROFITS (“DAC”)



	THREE MONTHS ENDED JUNE 30, 2013
										Talcott Resolution
	Property and Casualty			Group Benefits			Mutual Funds			U.S. Annuity			International Annuity		Institutional			Other [1]		Consolidated
Balance, beginning of period	$	545		$	45		$	23		$	1,752		$	—	$	50		$	16	$	2,431
Deferred costs	315			5			11			5			—		—			—		336
Amortization — DAC	(309		)	(8		)	(10		)	(46		)	—		(1		)	—		(374		)
Amortization — DAC unlock charge, before tax	—			—			—			(17		)	—		—			—		(17		)
Adjustments to unrealized gains/losses on securities available-for-sale and other	—			—			(1		)	97			—		—			—		96
Balance, end of period	$	551		$	42		$	23		$	1,791		$	—	$	49		$	16	$	2,472



	SIX MONTHS ENDED JUNE 30, 2013
										Talcott Resolution
	Property and Casualty			Group Benefits			Mutual Funds			U.S. Annuity			International Annuity			Institutional			Other [1]			Consolidated
Balance, beginning of period	$	548		$	43		$	22		$	1,823		$	993		$	51		$	2,245		$	5,725
Deferred costs	622			15			20			11			—			—			—			668
Amortization — DAC	(619		)	(16		)	(19		)	(130		)	(20		)	(2		)	—			(806		)
Amortization — DAC unlock charge, before tax [2]	—			—			—			(34		)	(887		)	—			—			(921		)
Amortization — DAC related to business dispositions [3]	—			—			—			—			—			—			(2,229		)	(2,229		)
Adjustments to unrealized gains/losses on securities available-for-sale and other	—			—			—			121			—			—			—			121
Effect of currency translation adjustment	—			—			—			—			(86		)	—			—			(86		)
Balance, end of period	$	551		$	42		$	23		$	1,791		$	—		$	49		$	16		$	2,472


[1]	Talcott Resolution Other includes DAC balances and activity related to the private placement life insurance ("PPLI"), Retirement Plans and Individual Life businesses. The Retirement Plans and Individual Life businesses were sold in January 2013.


[2]	International Annuity's unlock charge relates to elimination of future estimated gross profits on the Japan variable annuity block due to the increased costs associated with expanding the Japan variable annuity hedging program in the first quarter of 2013.


[3]	Includes $204 and $2,025 recognized in the first quarter of 2013 upon the sale of the Retirement Plans and Individual Life businesses, respectively, representing accelerated amortization and previously unrealized gains on securities available-for-sale.

PROPERTY & CASUALTY

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PROPERTY & CASUALTY

INCOME STATEMENTS



	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Jun. 30 2013			Jun. 30 2012
UNDERWRITING RESULTS
Written premiums	$	2,501		$	2,523		$	2,314		$	2,512		$	2,472		$	2,549		$	5,024		$	5,021
Change in unearned premium reserve	48			98			(165		)	18			18			83			146			101
Earned premiums	2,453			2,425			2,479			2,494			2,454			2,466			4,878			4,920
Losses and loss adjustment expenses
Current accident year before catastrophes	1,551			1,536			1,660			1,717			1,590			1,601			3,087			3,191
Current accident year catastrophes	186			32			335			10			290			71			218			361
Prior year development	146			14			9			(33		)	49			(29		)	160			20
Total losses and loss adjustment expenses	1,883			1,582			2,004			1,694			1,929			1,643			3,465			3,572
Amortization of DAC	309			310			317			313			315			314			619			629
Underwriting expenses	389			375			381			367			388			403			764			791
Dividends to policyholders	4			4			6			5			5			(2		)	8			3
Underwriting gain (loss)	(132		)	154			(229		)	115			(183		)	108			22			(75		)
Net investment income	338			312			301			295			319			317			650			636
Net realized capital gains (losses)	(7		)	51			40			16			(21		)	61			44			40
Other expense	(34		)	(24		)	(33		)	(35		)	(17		)	(35		)	(58		)	(52		)
Restructuring and other costs	—			—			—			(1		)	(5		)	—			—			(5		)
Income from continuing operations before income taxes	165			493			79			390			93			451			658			544
Income tax expense (benefit)	27			142			(2		)	106			8			126			169			134
Income from continuing operations, after tax	138			351			81			284			85			325			489			410
Loss from discontinued operations, after tax	(2		)	—			(1		)	(2		)	(1		)	(1		)	(2		)	(2		)
Net income	136			351			80			282			84			324			487			408
Less: Restructuring and other costs, after tax	—			—			—			(1		)	(3		)	—			—			(3		)
Less: Loss from discontinued operations, after tax	(2		)	—			(1		)	(2		)	(1		)	(1		)	(2		)	(2		)
Less: Net realized capital gains (losses), after tax and DAC, excluded from core earnings	(2		)	33			27			10			(13		)	41			31			28
Core earnings	$	140		$	318		$	54		$	275		$	101		$	284		$	458		$	385

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PROPERTY & CASUALTY

UNDERWRITING RATIOS



	THREE MONTHS ENDED																	SIX MONTHS ENDED
	Jun. 30 2013			Mar. 31 2013		Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Jun. 30 2013			Jun. 30 2012
UNDERWRITING GAIN (LOSS)	$	(132	)	$	154	$	(229	)	$	115		$	(183	)	$	108		$	22		$	(75	)
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes	63.2			63.3		67.0			68.8			64.8			64.9			63.3			64.9
Current accident year catastrophes	7.6			1.3		13.5			0.4			11.8			2.9			4.5			7.3
Prior year development	6.0			0.6		0.4			(1.3		)	2.0			(1.2		)	3.3			0.4
Total losses and loss adjustment expenses	76.8			65.2		80.8			67.9			78.6			66.6			71.0			72.6
Expenses	28.5			28.2		28.2			27.3			28.6			29.1			28.4			28.9
Policyholder dividends	0.2			0.2		0.2			0.2			0.2			(0.1		)	0.2			0.1
Combined ratio	105.4			93.6		109.2			95.4			107.5			95.6			99.5			101.5
Catastrophes
Current year	7.6			1.3		13.5			0.4			11.8			2.9			4.5			7.3
Prior year	(1.6		)	0.1		—			(0.3		)	(2.0		)	(0.4		)	(0.8		)	(1.2		)
Catastrophe ratio	6.0			1.4		13.6			0.1			9.9			2.4			3.7			6.1
Combined ratio before catastrophes	99.4			92.2		95.7			95.3			97.6			93.2			95.9			95.4
Combined ratio before catastrophes and prior year development	91.8			91.8		95.4			96.3			93.6			93.9			91.8			93.8

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

P&C COMMERCIAL

UNDERWRITING RESULTS



	THREE MONTHS ENDED																SIX MONTHS ENDED
	Jun. 30 2013			Mar. 31 2013		Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012		Jun. 30 2013		Jun. 30 2012
UNDERWRITING RESULTS
Written premiums	$	1,533		$	1,645	$	1,454		$	1,552		$	1,516		$	1,687	$	3,178	$	3,203
Change in unearned premium reserve	(12		)	116		(114		)	(30		)	(36		)	130		104		94
Earned premiums	1,545			1,529		1,568			1,582			1,552			1,557		3,074		3,109
Losses and loss adjustment expenses
Current accident year before catastrophes [1]	966			968		1,067			1,089			995			1,027		1,934		2,022
Current accident year catastrophes [2]	44			6		209			10			74			32		50		106
Prior year development [3]	37			8		18			15			19			20		45		39
Total losses and loss adjustment expenses	1,047			982		1,294			1,114			1,088			1,079		2,029		2,167
Amortization of DAC	226			227		234			231			231			231		453		462
Underwriting expenses	243			225		227			218			235			245		468		480
Dividends to policyholders [6]	4			4		6			5			5			(2)		8		3
Underwriting gain (loss)	$	25		$	91	$	(193	)	$	14		$	(7	)	$	4	$	116	$	(3	)


[1]	The three months ended December 31, 2012 included current accident year reserve strengthening of $28 predominantly related to workers' compensation business. The three months ended

September 30, 2012 included current accident year reserve strengthening of $39 predominantly related to workers' compensation business and auto liability claims.


[2]	Included within current accident year catastrophes in the three months ended December 31, 2012 was $207 related to Storm Sandy.


[3]	Included within prior year development was the following (favorable) unfavorable prior year loss reserve development:



	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Jun. 30 2013			Jun. 30 2012
Auto liability	$	40		$	15		$	11		$	14		$	19		$	12		$	55		$	31
Professional liability	(30		)	1			—			22			9			9			(29		)	18
Package business	(3		)	(11		)	14			(2		)	(16		)	(16		)	(14		)	(32		)
General liability	(10		)	(19		)	(11		)	(36		)	(24		)	(16		)	(29		)	(40		)
Fidelity and surety	—			(5		)	(12		)	(8		)	10			1			(5		)	11
Commercial property	(2		)	(4		)	(3		)	1			4			(10		)	(6		)	(6		)
Uncollectible reinsurance	(25		)	—			—			—			—			—			(25		)	—
Workers’ compensation	1			18			9			18			43			8			19			51
Workers’ compensation - NY 25a Fund for Reopened Cases	80			—			—			—			—			—			80			—
Change in workers' compensation discount, including accretion	7			8			7			8			8			29			15			37
Catastrophes [4]	(9		)	—			1			(2		)	(39		)	3			(9		)	(36		)
Other reserve re-estimates, net [5]	(12		)	5			2			—			5			—			(7		)	5
Total prior year development	$	37		$	8		$	18		$	15		$	19		$	20		$	45		$	39


[4]	The three months ended June 30, 2012 included one time reserve releases on certain prior year catastrophes primarily related to 2001 World Trade Center workers’ compensation claims.


[5]	The three months ended June 30, 2013 included an $18 recovery related to a class action settlement with American International Group involving prior accident years involuntary workers compensation pool loss and loss adjustment expense.


[6]	The three months ended March 31, 2012 included a decrease in prior dividends of $8.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

P&C COMMERCIAL

UNDERWRITING RATIOS



	THREE MONTHS ENDED																	SIX MONTHS ENDED
	Jun. 30 2013			Mar. 31 2013		Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Jun. 30 2013			Jun. 30 2012
UNDERWRITING GAIN (LOSS)	$	25		$	91	$	(193	)	$	14		$	(7	)	$	4		$	116		$	(3	)
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1]	62.5			63.3		68.0			68.8			64.1			66.0			62.9			65.0
Current accident year catastrophes [2]	2.8			0.4		13.3			0.6			4.8			2.1			1.6			3.4
Prior year development [3]	2.4			0.5		1.1			0.9			1.2			1.3			1.5			1.3
Total losses and loss adjustment expenses	67.8			64.2		82.5			70.4			70.1			69.3			66.0			69.7
Expenses	30.4			29.6		29.4			28.4			30.0			30.6			30.0			30.3
Policyholder dividends	0.3			0.3		0.4			0.3			0.3			(0.1		)	0.3			0.1
Combined ratio	98.4			94.0		112.3			99.1			100.5			99.7			96.2			100.1
Catastrophes
Current year [2]	2.8			0.4		13.3			0.6			4.8			2.1			1.6			3.4
Prior year	(0.6		)	—		0.1			(0.1		)	(2.5		)	0.2			(0.3		)	(1.2		)
Catastrophe ratio	2.3			0.4		13.4			0.5			2.3			2.2			1.3			2.3
Combined ratio before catastrophes	96.1			93.7		98.9			98.6			98.2			97.5			94.9			97.8
Combined ratio before catastrophes and prior year development	93.1			93.1		97.8			97.5			94.5			96.4			93.1			95.4


[1]	The three months ended December 31, 2012 included current accident year reserve strengthening of 1.8 points, predominantly related to workers’ compensation business. The three months ended September 30, 2012 included current accident year reserve strengthening of 2.5 points, predominantly related to workers' compensation business and auto liability claims.


[2]	Included in current accident year catastrophes in the three months ended December 31, 2012 was 13.2 points related to Storm Sandy.


[3]	For a summary of (favorable) unfavorable prior year loss reserve development, refer to footnote 3 on page 11.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

P&C COMMERCIAL

SUPPLEMENTAL DATA



	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Jun. 30 2013			Jun. 30 2012
WRITTEN PREMIUMS
Small Commercial	$	787		$	842		$	705		$	728		$	769		$	815		$	1,629		$	1,584
Middle Market	518			546			545			557			512			581			1,064			1,093
Specialty	219			248			195			259			227			283			467			510
Other	9			9			9			8			8			8			18			16
Total	$	1,533		$	1,645		$	1,454		$	1,552		$	1,516		$	1,687		$	3,178		$	3,203
EARNED PREMIUMS
Small Commercial	$	763		$	754		$	760		$	755		$	738		$	726		$	1,517		$	1,464
Middle Market	540			530			559			565			562			577			1,070			1,139
Specialty	233			236			243			253			244			245			469			489
Other	9			9			6			9			8			9			18			17
Total	$	1,545		$	1,529		$	1,568		$	1,582		$	1,552		$	1,557		$	3,074		$	3,109
SMALL COMMERCIAL
Combined ratio	94.5			89.9			111.2			93.6			94.8			97.3			92.2			96.1
Combined ratio before catastrophes	91.8			88.2			96.5			93.0			88.7			93.1			90.0			90.9
Combined ratio before catastrophes and prior year development	87.6			89.2			92.8			92.6			87.1			91.8			88.4			89.4
MIDDLE MARKET
Combined ratio	101.7			91.6			117.1			103.5			104.1			98.8			96.7			101.4
Combined ratio before catastrophes	99.3			93.2			99.6			103.7			102.5			97.6			96.3			100.0
Combined ratio before catastrophes and prior year development	95.2			95.8			99.0			100.7			98.4			99.2			95.5			98.8
SPECIALTY
Combined ratio	113.8			112.6			104.9			117.4			107.9			108.2			113.2			108.1
Combined ratio before catastrophes	113.4			111.8			104.4			116.1			115.1			108.8			112.6			112.0
Combined ratio before catastrophes and prior year development	105.7			98.9			111.2			105.0			106.5			102.9			102.3			104.7
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
Renewal Written Price Increases
Standard Commercial Lines	8		%	8		%	8		%	8		%	7		%	7		%	8		%	7		%
Policy Count Retention
Small Commercial	80		%	82		%	83		%	84		%	82		%	84		%	81		%	83		%
Middle Market	79		%	77		%	79		%	78		%	73		%	79		%	78		%	76		%
New Business Premium $
Small Commercial	$	125		$	134		$	109		$	109		$	135		$	145		$	259		$	280
Middle Market	$	116		$	97		$	80		$	86		$	78		$	91		$	213		$	169
Policies in Force
Small Commercial	1,180,980			1,185,222			1,187,472			1,191,451			1,188,147			1,179,995
Middle Market	74,472			74,645			75,871			77,372			78,676			81,159

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSUMER MARKETS

UNDERWRITING RESULTS



	THREE MONTHS ENDED																		SIX MONTHS ENDED
UNDERWRITING RESULTS	Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Jun. 30 2013			Jun. 30 2012
Written premiums	$	967		$	878		$	859		$	960		$	950		$	861		$	1,845		$	1,811
Change in unearned premium reserve	59			(18		)	(52		)	48			46			(48		)	41			(2		)
Earned premiums	908			896			911			912			904			909			1,804			1,813
Losses and loss adjustment expenses
Current accident year before catastrophes	585			568			593			628			595			574			1,153			1,169
Current accident year catastrophes [1]	142			26			126			—			216			39			168			255
Prior year development [2]	(32		)	4			(14		)	(49		)	(23		)	(55		)	(28		)	(78		)
Total losses and loss adjustment expenses	695			598			705			579			788			558			1,293			1,346
Amortization of DAC	83			83			83			82			84			83			166			167
Underwriting expenses	139			143			144			141			146			150			282			296
Underwriting gain (loss)	$	(9	)	$	72		$	(21	)	$	110		$	(114	)	$	118		$	63		$	4


[1]	Included within current accident year catastrophes in the three months ended December 31, 2012 was $143 related to Storm Sandy.


[2]	Included within prior year development was the following (favorable) unfavorable prior year loss reserve development:



	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Jun. 30 2013			Jun. 30 2012
Auto liability	$	2		$	—		$	(2	)	$	(38	)	$	(11	)	$	(30	)	$	2		$	(41	)
Homeowners	(2		)	(8		)	(22		)	(4		)	(1		)	(5		)	(10		)	(6		)
Catastrophes [3]	(31		)	2			—			(6		)	(9		)	(14		)	(29		)	(23		)
Other reserve re-estimates, net	(1		)	10			10			(1		)	(2		)	(6		)	9			(8		)
Total prior year development	$	(32	)	$	4		$	(14	)	$	(49	)	$	(23	)	$	(55	)	$	(28	)	$	(78	)

[3] The three months ended June 30, 2013 included releases of $20 related to Storm Sandy.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSUMER MARKETS

UNDERWRITING RATIOS



	THREE MONTHS ENDED																	SIX MONTHS ENDED
	Jun. 30 2013			Mar. 31 2013		Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Jun. 30 2013			Jun. 30 2012
UNDERWRITING GAIN (LOSS)	$	(9	)	$	72	$	(21	)	$	110		$	(114	)	$	118		$	63		$	4
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes	64.4			63.4		65.1			68.9			65.8			63.1			63.9			64.5
Current accident year catastrophes [1]	15.6			2.9		13.8			—			23.9			4.3			9.3			14.1
Prior year development [2]	(3.5		)	0.4		(1.5		)	(5.4		)	(2.5		)	(6.1		)	(1.6		)	(4.3		)
Total losses and loss adjustment expenses	76.5			66.7		77.4			63.5			87.2			61.4			71.7			74.2
Expenses	24.4			25.2		24.9			24.5			25.4			25.6			24.8			25.5
Combined ratio	101.0			92.0		102.3			87.9			112.6			87.0			96.5			99.8
Catastrophes
Current year [1]	15.6			2.9		13.8			—			23.9			4.3			9.3			14.1
Prior year	(3.4		)	0.2		—			(0.7		)	(1.0		)	(1.5		)	(1.6		)	(1.3		)
Catastrophe ratio	12.2			3.1		13.8			(0.7		)	22.9			2.8			7.7			12.8
Combined ratio before catastrophes	88.8			88.8		88.5			88.6			89.7			84.3			88.8			87.0
Combined ratio before catastrophes and prior year development	88.9			88.6		90.0			93.3			91.3			88.8			88.7			90.0
PRODUCT
Automobile
Combined ratio	94.6			96.0		109.4			93.9			98.8			88.4			95.3			93.6
Combined ratio before catastrophes and prior year development	93.8			93.3		100.5			100.1			96.0			93.8			93.5			94.9
Homeowners
Combined ratio	115.0			82.7		86.1			74.5			144.1			83.8			99.0			113.9
Combined ratio before catastrophes and prior year development	77.9			77.9		65.7			78.2			80.2			77.4			77.9			78.8


[1]	Included in current accident year catastrophes in the three months ended December 31, 2012 was 15.7 points related to Storm Sandy.


[2]	Refer to footnote 2 on page 14 for a summary of (favorable) unfavorable prior year loss reserve development.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSUMER MARKETS

SUPPLEMENTAL DATA



	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Jun. 30 2013			Jun. 30 2012
DISTRIBUTION
WRITTEN PREMIUMS
AARP Direct	$	718		$	647		$	623		$	714		$	710		$	633		$	1,365		$	1,343
AARP Agency	52			45			40			37			32			27			97			59
Other Agency	182			173			181			196			194			186			355			380
Other	15			13			15			13			14			15			28			29
Total	$	967		$	878		$	859		$	960		$	950		$	861		$	1,845		$	1,811
EARNED PREMIUMS
AARP Direct	$	673		$	662		$	674		$	679		$	671		$	676		$	1,335		$	1,347
AARP Agency	41			35			32			27			23			19			76			42
Other Agency	181			184			188			194			195			201			365			396
Other	13			15			17			12			15			13			28			28
Total	$	908		$	896		$	911		$	912		$	904		$	909		$	1,804		$	1,813
PRODUCT LINE
WRITTEN PREMIUMS
Automobile	$	657		$	629		$	595		$	650		$	649		$	620		$	1,286		$	1,269
Homeowners	310			249			264			310			301			241			559			542
Total	$	967		$	878		$	859		$	960		$	950		$	861		$	1,845		$	1,811
EARNED PREMIUMS
Automobile	$	626		$	619		$	632		$	632		$	630		$	632		$	1,245		$	1,262
Homeowners	282			277			279			280			274			277			559			551
Total	$	908		$	896		$	911		$	912		$	904		$	909		$	1,804		$	1,813
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
Renewal Written Price Increases
Automobile	5		%	5		%	5		%	4		%	4		%	4		%	5		%	4		%
Homeowners	7		%	6		%	6		%	6		%	6		%	6		%	6		%	6		%
Policy Count Retention
Automobile	86		%	86		%	86		%	85		%	84		%	84		%	86		%	84		%
Homeowners	87		%	87		%	88		%	87		%	86		%	85		%	87		%	85		%
Premium Retention
Automobile	88		%	88		%	87		%	87		%	86		%	84		%	88		%	85		%
Homeowners	92		%	92		%	91		%	91		%	90		%	89		%	92		%	90		%
New Business Premium $
Automobile	$	93		$	87		$	77		$	84		$	85		$	86		$	180		$	171
Homeowners	$	34		$	30		$	30		$	32		$	30		$	25		$	64		$	55
Policies in Force
Automobile	2,019,678			2,018,628			2,015,323			2,029,078			2,044,874			2,065,317
Homeowners	1,321,824			1,322,290			1,319,101			1,321,149			1,323,557			1,330,117

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

P&C OTHER OPERATIONS

UNDERWRITING RESULTS



	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Jun. 30 2013			Jun. 30 2012
UNDERWRITING RESULTS
Written premiums	$	1		$	—		$	1		$	—		$	6		$	1		$	1		$	7
Change in unearned premium reserve	1			—			1			—			8			1			1			9
Earned premiums	—			—			—			—			(2		)	—			—			(2		)
Losses and loss adjustment expenses
Prior year development [1]	141			2			5			1			53			6			143			59
Total losses and loss adjustment expenses	141			2			5			1			53			6			143			59
Underwriting expenses	7			7			10			8			7			8			14			15
Underwriting loss	$	(148	)	$	(9	)	$	(15	)	$	(9	)	$	(62	)	$	(14	)	$	(157	)	$	(76	)


[1]	Included within prior year development was the following (favorable) unfavorable prior year loss reserve development:



	THREE MONTHS ENDED												SIX MONTHS ENDED
	Jun. 30 2013		Mar. 31 2013		Dec. 31 2012		Sept. 30 2012		Jun. 30 2012		Mar. 31 2012		Jun. 30 2013		Jun. 30 2012
Asbestos	$	130	$	—	$	—	$	—	$	48	$	—	$	130	$	48
Environmental	10		1		2		—		3		5		11		8
Other reserve re-estimates, net	1		1		3		1		2		1		2		3
Total prior year development	$	141	$	2	$	5	$	1	$	53	$	6	$	143	$	59

GROUP BENEFITS

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

GROUP BENEFITS

INCOME STATEMENTS



	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Jun. 30 2013			Jun. 30 2012
Earned premiums	$	823		$	812		$	915		$	926		$	950		$	957		$	1,635		$	1,907
Fee income	15			14			16			15			16			15			29			31
Net investment income	100			97			101			98			107			99			197			206
Net realized capital gains	37			18			9			11			—			20			55			20
Total revenues	975			941			1,041			1,050			1,073			1,091			1,916			2,164
Benefits, losses and loss adjustment expenses	635			639			717			746			759			807			1,274			1,566
Amortization of DAC	8			8			8			9			8			8			16			16
Insurance operating costs and other expenses	248			240			256			257			261			258			488			519
Restructuring and other costs	—			—			—			1			—			—			—			—
Total benefits and expenses	891			887			981			1,013			1,028			1,073			1,778			2,101
Income from continuing operations before income taxes	84			54			60			37			45			18			138			63
Income tax expense	23			12			14			7			10			—			35			10
Net income	61			42			46			30			35			18			103			53
Less: Net realized capital gains, after tax, excluded from core earnings	24			12			7			7			1			13			36			14
Core earnings	$	37		$	30		$	39		$	23		$	34		$	5		$	67		$	39
After-tax margin (excluding buyouts)
Net income	6.3		%	4.5		%	4.4		%	2.9		%	3.3		%	1.7		%	5.4		%	2.5		%
Core earnings	3.9		%	3.2		%	3.8		%	2.2		%	3.2		%	0.5		%	3.6		%	1.8		%

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

GROUP BENEFITS

SUPPLEMENTAL DATA



	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Jun. 30 2013			Jun. 30 2012
PREMIUMS
Fully insured ongoing premiums
Group disability	$	355		$	345		$	411		$	411		$	423		$	428		$	700		$	851
Group life	427			426			456			468			478			476			853			954
Other	40			41			48			47			49			50			81			99
Total fully insured ongoing premiums	$	822		$	812		$	915		$	926		$	950		$	954		$	1,634		$	1,904
Total buyouts [1]	1			—			—			—			—			3			1			3
Total premiums	823			812			915			926			950			957			1,635			1,907
Group disability premium equivalents [2]	100			106			111			114			111			110			206			221
Total premiums and premium equivalents	$	923		$	918		$	1,026		$	1,040		$	1,061		$	1,067		$	1,841		$	2,128
SALES (GROSS ANNUALIZED NEW PREMIUMS)
Fully insured ongoing sales
Group disability	$	46		$	76		$	25		$	25		$	27		$	86		$	122		$	113
Group life	55			88			28			24			37			135			143			172
Other	2			5			3			6			2			7			7			9
Total fully insured ongoing sales	103			169			56			55			66			228			272			294
Total buyouts [1]	1			—			—			—			1			2			1			3
Total sales	104			169			56			55			67			230			273			297
Group disability premium equivalents [2]	18			15			8			7			3			31			33			34
Total sales and premium equivalents	$	122		$	184		$	64		$	62		$	70		$	261		$	306		$	331
RATIOS [3]
Loss ratio
Group disability loss ratio	82.7		%	89.9		%	85.8		%	91.5		%	93.1		%	98.2		%	86.2		%	95.7		%
Group life loss ratio	70.8		%	68.1		%	70.0		%	69.4		%	66.5		%	70.3		%	69.4		%	68.4		%
Total loss ratio	75.7		%	77.4		%	77.0		%	79.3		%	78.6		%	83.0		%	76.5		%	80.8		%
Expense ratio	30.6		%	30.0		%	28.4		%	28.4		%	27.8		%	27.5		%	30.3		%	27.6		%
GAAP RESERVES, NET OF REINSURANCE RECOVERABLES [4]
Group disability	$	5,207		$	5,267		$	5,321		$	5,346		$	5,348		$	5,342
Group life	1,110			1,116			1,164			1,151			1,159			1,174
Other	68			68			75			71			73			75
Total GAAP reserves	$	6,385		$	6,451		$	6,560		$	6,568		$	6,580		$	6,591


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


[2]	Administrative service only fees and claims under claim management agreements.


[3]	Ratios calculated include fee income and exclude the effects of buyout premiums.


[4]	Reinsurance recoverables were $260, $250, $252, $254, $244 and $239 as of June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012, June 30, 2012 and March 31, 2012, respectively.

MUTUAL FUNDS

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

MUTUAL FUNDS

INCOME STATEMENTS



	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Jun. 30 2013			Jun. 30 2012
Fee income	$	170		$	164		$	152		$	148		$	148		$	151		$	334		$	299
Net investment loss	—			—			(1		)	(1		)	—			(1		)	—			(1		)
Net realized capital gains (losses)	—			—			—			1			(2		)	1			—			(1		)
Total revenues	170			164			151			148			146			151			334			297
Amortization of DAC	10			9			9			8			9			9			19			18
Insurance operating costs and other expenses [1]	128			126			118			112			108			111			254			219
Restructuring and other costs	1			1			1			1			1			—			2			1
Total benefits and expenses	139			136			128			121			118			120			275			238
Income before income taxes	31			28			23			27			28			31			59			59
Income tax expense	11			10			8			9			10			11			21			21
Net income	20			18			15			18			18			20			38			38
Less: Restructuring and other costs, after tax	(1		)	(1		)	(1		)	(1		)	(1		)	—			(2		)	(1		)
Less: Net realized capital gains (losses), after tax, excluded from core earnings	1			(1		)	—			—			—			—			—			—
Core earnings	$	20		$	20		$	16		$	19		$	19		$	20		$	40		$	39
Return on assets (bps, after tax)
Net income	8.8			8.0			6.8			8.3			8.1			9.0			8.6			8.8
Core earnings	8.8			8.9			7.3			8.7			8.5			9.0			9.1			9.1


[1]	Includes compensation to servicing intermediaries of approximately $5 in both the first and second quarters of 2013 related to on-going business with the Company's Retirement

Plans and Individual Life businesses sold in January 2013; prior to the first quarter of 2013, compensation to servicing intermediaries was presented as a reduction to fee income.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

MUTUAL FUNDS

SUPPLEMENTAL DATA — ASSET VALUE ROLL FORWARD

ASSETS UNDER MANAGEMENT — BY DISTRIBUTION CHANNEL



	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Jun. 30 2013			Jun. 30 2012
RETAIL MUTUAL FUNDS [1]
Beginning balance	$	48,186		$	45,013		$	44,267		$	42,665		$	45,315		$	41,785		$	45,013		$	41,785
Sales	2,789			3,162			2,433			2,136			2,031			2,210			5,951			4,241
Redemptions	(4,075		)	(3,176		)	(2,726		)	(2,436		)	(2,856		)	(3,069		)	(7,251		)	(5,925		)
Net flows	(1,286		)	(14		)	(293		)	(300		)	(825		)	(859		)	(1,300		)	(1,684		)
Change in market value and other [2]	717			3,187			1,039			1,902			(1,825		)	4,389			3,904			2,564
Ending balance	$	47,617		$	48,186		$	45,013		$	44,267		$	42,665		$	45,315		$	47,617		$	42,665
DEFINED CONTRIBUTION INVESTMENT ONLY MUTUAL FUNDS [3]
Beginning balance	$	17,622		$	16,598		$	17,015		$	16,678		$	17,945		$	16,140		$	16,598		$	16,140
Sales	937			942			720			662			793			856			1,879			1,649
Redemptions	(2,590		)	(1,426		)	(1,484		)	(1,144		)	(1,386		)	(1,157		)	(4,016		)	(2,543		)
Net flows	(1,653		)	(484		)	(764		)	(482		)	(593		)	(301		)	(2,137		)	(894		)
Change in market value and other	22			1,508			347			819			(674		)	2,106			1,530			1,432
Ending balance	$	15,991		$	17,622		$	16,598		$	17,015		$	16,678		$	17,945		$	15,991		$	16,678
TOTAL MUTUAL FUNDS
Beginning balance	$	65,808		$	61,611		$	61,282		$	59,343		$	63,260		$	57,925		$	61,611		$	57,925
Sales	3,726			4,104			3,153			2,798			2,824			3,066			7,830			5,890
Redemptions [4]	(6,665		)	(4,602		)	(4,210		)	(3,580		)	(4,242		)	(4,226		)	(11,267		)	(8,468		)
Net flows	(2,939		)	(498		)	(1,057		)	(782		)	(1,418		)	(1,160		)	(3,437		)	(2,578		)
Change in market value and other	739			4,695			1,386			2,721			(2,499		)	6,495			5,434			3,996
Ending balance	$	63,608		$	65,808		$	61,611		$	61,282		$	59,343		$	63,260		$	63,608		$	59,343
AVERAGE MUTUAL FUNDS ASSETS UNDER MANAGEMENT	$	64,708		$	63,710		$	61,447		$	60,313		$	61,302		$	60,593		$	62,610		$	58,634
ANNUITY MUTUAL FUND ASSETS [5]	$	25,901		$	26,628		$	26,036		$	26,839		$	26,888		$	29,145		$	25,901		$	26,888
TOTAL ASSETS UNDER MANAGEMENT	$	89,509		$	92,436		$	87,647		$	88,121		$	86,231		$	92,405		$	89,509		$	86,231
AVERAGE ASSETS UNDER MANAGEMENT	$	90,973		$	90,042		$	87,884		$	87,176		$	89,318		$	88,972		$	88,578		$	85,884

[1]Includes mutual funds offered within 529 college savings plans.

[2]Includes front end loads on A share products.

[3]Includes mutual funds offered within employee directed retirement plans including on-going business related to the Company's Retirement Plans and Individual Life businesses sold in January 2013.

[4]Includes an expected institutional redemption as well as a portfolio rebalance at a key distributor, together totaling $2.5 billion in the second quarter of 2013.

[5]Includes Company-sponsored mutual fund assets held in separate accounts supporting variable insurance and investment products.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

MUTUAL FUNDS

SUPPLEMENTAL DATA — ASSET VALUE ROLL FORWARD

ASSETS UNDER MANAGEMENT — BY ASSET CLASS



	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Jun. 30 2013			Jun. 30 2012
EQUITY
Beginning balance	$	38,453		$	35,843		$	36,341		$	35,694		$	39,501		$	35,489		$	35,843		$	35,489
Sales	1,446			1,559			1,117			1,047			1,275			1,416			3,005			2,691
Redemptions	(4,821		)	(2,951		)	(2,562		)	(2,239		)	(2,750		)	(2,725		)	(7,772		)	(5,475		)
Net flows	(3,375		)	(1,392		)	(1,445		)	(1,192		)	(1,475		)	(1,309		)	(4,767		)	(2,784		)
Change in market value and other	1,108			4,002			947			1,839			(2,332		)	5,321			5,110			2,989
Ending balance	$	36,186		$	38,453		$	35,843		$	36,341		$	35,694		$	39,501		$	36,186		$	35,694
FIXED INCOME
Beginning balance	$	15,213		$	14,524		$	13,941		$	13,281		$	13,321		$	13,064		$	14,524		$	13,064
Sales	1,432			1,755			1,366			1,109			884			954			3,187			1,838
Redemptions	(1,323		)	(1,133		)	(1,042		)	(828		)	(1,056		)	(1,027		)	(2,456		)	(2,083		)
Net flows	109			622			324			281			(172		)	(73		)	731			(245		)
Change in market value and other	(378		)	67			259			379			132			330			(311		)	462
Ending balance	$	14,944		$	15,213		$	14,524		$	13,941		$	13,281		$	13,321		$	14,944		$	13,281
MULTI-STRATEGY INVESTMENTS [1]
Beginning balance	$	12,142		$	11,244		$	11,000		$	10,368		$	10,438		$	9,372		$	11,244		$	9,372
Sales	848			790			670			642			665			696			1,638			1,361
Redemptions	(521		)	(518		)	(606		)	(513		)	(436		)	(474		)	(1,039		)	(910		)
Net flows	327			272			64			129			229			222			599			451
Change in market value and other	9			626			180			503			(299		)	844			635			545
Ending balance	$	12,478		$	12,142		$	11,244		$	11,000		$	10,368		$	10,438		$	12,478		$	10,368
TOTAL MUTUAL FUNDS [2]	$	63,608		$	65,808		$	61,611		$	61,282		$	59,343		$	63,260		$	63,608		$	59,343


[1]	Includes balanced, allocation, target date and alternatives.


[2]	Excludes annuity mutual fund assets.

TALCOTT RESOLUTION

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

TALCOTT RESOLUTION

FINANCIAL HIGHLIGHTS



	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Jun. 30 2013			Jun. 30 2012
NET INCOME (LOSS)
U.S. Annuity	$	23		$	63		$	35		$	188		$	(19	)	$	198		$	86		$	179
International Annuity [1]	(407		)	(490		)	(176		)	(79		)	402			(465		)	(897		)	(63		)
Institutional	3			25			3			27			13			52			28			65
Other [2] [3]	49			108			(10		)	(257		)	44			45			157			89
Talcott Resolution net income (loss)	(332		)	(294		)	(148		)	(121		)	440			(170		)	(626		)	270
Less: Unlock benefit (charge), after tax	36			(541		)	39			(79		)	(146		)	214			(505		)	68
Less: Restructuring and other costs, after tax	1			(1		)	(14		)	(21		)	(9		)	—			—			(9		)
Less: Income (loss) from discontinued operations, after tax [1]	(124		)	(1		)	—			22			8			37			(125		)	45
Less: Net reinsurance gain (loss) on dispositions, after tax	1			44			—			(270		)	—			—			45			—
Less: Net realized gains (losses) and other, after tax and DAC, excluded from core earnings	(442		)	43			(375		)	35			387			(637		)	(399		)	(250		)
Talcott Resolution core earnings [4]	$	196		$	162		$	202		$	192		$	200		$	216		$	358		$	416
CORE EARNINGS (LOSSES)
U.S. Annuity	$	79		$	73		$	96		$	74		$	80		$	96		$	152		$	176
International Annuity	96			69			63			73			65			71			165			136
Institutional	8			9			(6		)	(7		)	5			4			17			9
Other [2]	13			11			49			52			50			45			24			95
Talcott Resolution core earnings [4]	$	196		$	162		$	202		$	192		$	200		$	216		$	358		$	416
UNLOCK IMPACT on NET INCOME (LOSS)
U.S. Annuity	$	(9	)	$	3		$	(90	)	$	(74	)	$	(43	)	$	90		$	(6	)	$	47
International Annuity	45			(544		)	138			3			(100		)	125			(499		)	25
Institutional	—			—			—			6			—			—			—			—
Other [2]	—			—			(9		)	(14		)	(3		)	(1		)	—			(4		)
Talcott Resolution unlock impact on net income (loss)	$	36		$	(541	)	$	39		$	(79	)	$	(146	)	$	214		$	(505	)	$	68


[1]	The three months ended June 30, 2013 includes an estimated loss on disposition of $102 and loss from discontinued operations of $22 for the period related to the U.K. variable annuity business.


[2]	Other consists of the PPLI, Retirement Plans and Individual Life businesses, as well as residual income or tax benefits associated with the reinsurance of the policyholder and separate account liabilities of the Retirement Plans and Individual Life businesses. The Retirement Plans and Individual Life businesses were sold in January 2013.


[3]	Includes derivative gains of $71 and $110 for the three months ended March 31, 2013 and December 31, 2012, respectively, primarily associated with previously terminated derivatives associated with fixed rate bonds sold in connection with the Retirement Plans and Individual Life business dispositions.


[4]	All applicable prior period financial information has been retroactively reclassified for discontinued operations. For further information regarding discontinued operations, refer to Basis of Presentation on page i.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

TALCOTT RESOLUTION

SUPPLEMENTAL DATA



	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Jun. 30 2013		Jun. 30 2012
CORE EARNINGS - RETURN ON ASSETS (bps, after tax)
U.S. Annuity	42.3			38.4			50.1			38.1			39.6			46.8			40.8		44.5
Japan Annuity	133.1			88.4			77.4			90.5			76.1			83.9			111.9		80.8
FULL SURRENDER RATES
U.S. variable annuity	17.5		%	14.5		%	10.4		%	10.4		%	13.0		%	9.6		%	16.2	%	11.6	%
Japan variable annuity	34.8		%	9.6		%	3.7		%	3.0		%	3.9		%	2.8		%	22.2	%	3.4	%
ACCOUNT VALUE (end of period) [1]
U.S. variable annuity	$	62,579		$	65,500		$	64,824		$	66,707		$	66,538		$	72,235
U.S. fixed annuity and other	10,670			10,797			10,848			11,006			11,228			11,507
Total U.S. Annuity account value	$	73,249		$	76,297		$	75,672		$	77,713		$	77,766		$	83,742
Japan variable annuity	23,921			26,934			27,716			28,725			27,977			29,396
Japan fixed annuity	3,368			3,553			3,908			4,535			4,461			4,469
Total Japan Annuity account value	$	27,289		$	30,487		$	31,624		$	33,260		$	32,438		$	33,865


[1]	Talcott Resolution total account value (including the U.S. and Japan Annuity account value information presented above) is summarized as follows:



	Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012
Other account value [2]	102,719			104,534			104,259			107,492			106,421			$	108,909
Institutional	17,252			17,586			17,744			18,204			18,233			$	18,622
Institutional account value inter-segment funding	$	(1,186	)	$	(1,171	)	$	(1,156	)	$	(1,346	)	$	(1,329	)	$	(1,312	)
Total account value	$	219,323		$	227,733		$	228,143		$	235,323		$	233,529		$	243,826

[2] Other account value includes the Retirement Plans and Individual Life businesses sold in January 2013, PPLI and the discontinued U.K. variable annuity business.

Account values associated with the Retirement Plans, Individual Life and U.K. variable annuity businesses no longer generate asset-based

fee income due to the sale of these businesses.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

TALCOTT RESOLUTION

U.S. ANNUITY — SUPPLEMENTAL DATA — ACCOUNT VALUE ROLL FORWARD



	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Jun. 30 2013			Jun. 30 2012
VARIABLE ANNUITIES
Beginning balance	$	65,500		$	64,824		$	66,707		$	66,538		$	72,235		$	68,760		$	64,824		$	68,760
Deposits	180			226			209			130			169			307			406			476
Partial withdrawals	(630		)	(710		)	(815		)	(711		)	(780		)	(815		)	(1,340		)	(1,595		)
Full surrenders	(2,805		)	(2,356		)	(1,717		)	(1,737		)	(2,251		)	(1,687		)	(5,161		)	(3,938		)
Death benefits/annuitizations/other [1]	(472		)	(468		)	(459		)	(388		)	(397		)	(449		)	(940		)	(846		)
Transfers	(1		)	1			(1		)	1			—			3			—			3
Net flows	(3,728		)	(3,307		)	(2,783		)	(2,705		)	(3,259		)	(2,641		)	(7,035		)	(5,900		)
Change in market value/change in reserve/interest credited and other	807			3,983			900			2,874			(2,438		)	6,116			4,790			3,678
Ending balance	$	62,579		$	65,500		$	64,824		$	66,707		$	66,538		$	72,235		$	62,579		$	66,538
FIXED MARKET VALUE ADJUSTED (“MVA”) AND OTHER
Beginning balance	$	10,797		$	10,848		$	11,006		$	11,228		$	11,507		$	11,631		$	10,848		$	11,631
Deposits	2			6			7			9			16			46			8			62
Surrenders	(161		)	(103		)	(167		)	(251		)	(298		)	(204		)	(264		)	(502		)
Death benefits/annuitizations/other [1]	(72		)	(74		)	(109		)	(105		)	(106		)	(102		)	(146		)	(208		)
Transfers	(3		)	—			—			2			(4		)	1			(3		)	(3		)
Net flows	(234		)	(171		)	(269		)	(345		)	(392		)	(259		)	(405		)	(651		)
Change in market value/change in reserve/interest credited and other	107			120			111			123			113			135			227			248
Ending balance	$	10,670		$	10,797		$	10,848		$	11,006		$	11,228		$	11,507		$	10,670		$	11,228
TOTAL U.S. ANNUITY
Beginning balance	$	76,297		$	75,672		$	77,713		$	77,766		$	83,742		$	80,391		$	75,672		$	80,391
Deposits	182			232			216			139			185			353			414			538
Surrenders	(3,596		)	(3,169		)	(2,699		)	(2,699		)	(3,329		)	(2,706		)	(6,765		)	(6,035		)
Death benefits/annuitizations/other [1]	(544		)	(542		)	(568		)	(493		)	(503		)	(551		)	(1,086		)	(1,054		)
Transfers	(4		)	1			(1		)	3			(4		)	4			(3		)	—
Net flows	(3,962		)	(3,478		)	(3,052		)	(3,050		)	(3,651		)	(2,900		)	(7,440		)	(6,551		)
Change in market value/change in reserve/interest credited and other	914			4,103			1,011			2,997			(2,325		)	6,251			5,017			3,926
Ending balance	$	73,249		$	76,297		$	75,672		$	77,713		$	77,766		$	83,742		$	73,249		$	77,766


[1]	Includes transfers from the accumulation phase to the annuitization phase.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

TALCOTT RESOLUTION

JAPAN ANNUITY — SUPPLEMENTAL DATA — ACCOUNT VALUE ROLL FORWARD



	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Jun. 30 2013			Jun. 30 2012
VARIABLE ANNUITIES
Beginning balance	$	26,934		$	27,716		$	28,725		$	27,977		$	29,396		$	29,233		$	27,716		$	29,233
Surrenders	(2,257		)	(694		)	(302		)	(255		)	(323		)	(250		)	(2,951		)	(573		)
Death benefits/annuitizations/other [1]	(206		)	(220		)	(203		)	(179		)	(176		)	(173		)	(426		)	(349		)
Net flows	(2,463		)	(914		)	(505		)	(434		)	(499		)	(423		)	(3,377		)	(922		)
Change in market value/change in reserve/interest credited	916			2,402			2,464			467			(1,829		)	2,586			3,318			757
Effect of currency translation	(1,466		)	(2,270		)	(2,968		)	715			909			(2,000		)	(3,736		)	(1,091		)
Ending balance [2]	$	23,921		$	26,934		$	27,716		$	28,725		$	27,977		$	29,396		$	23,921		$	27,977
FIXED MARKET VALUE ADJUSTED ("MVA") AND OTHER
Beginning balance	$	3,553		$	3,908		$	4,535		$	4,461		$	4,469		$	4,786		$	3,908		$	4,786
Surrenders	(26		)	(41		)	(47		)	(58		)	(152		)	(47		)	(67		)	(199		)
Death benefits/annuitizations/other [1]	(18		)	(13		)	(180		)	(3		)	(18		)	1			(31		)	(17		)
Net flows	(44		)	(54		)	(227		)	(61		)	(170		)	(46		)	(98		)	(216		)
Change in market value/change in reserve/interest credited	28			37			42			22			23			40			65			63
Effect of currency translation	(169		)	(338		)	(442		)	113			139			(311		)	(507		)	(172		)
Ending balance	$	3,368		$	3,553		$	3,908		$	4,535		$	4,461		$	4,469		$	3,368		$	4,461
TOTAL JAPAN ANNUITY
Beginning balance	$	30,487		$	31,624		$	33,260		$	32,438		$	33,865		$	34,019		$	31,624		$	34,019
Surrenders	(2,283		)	(735		)	(349		)	(313		)	(475		)	(297		)	(3,018		)	(772		)
Death benefits/annuitizations/other [1]	(224		)	(233		)	(383		)	(182		)	(194		)	(172		)	(457		)	(366		)
Net flows	(2,507		)	(968		)	(732		)	(495		)	(669		)	(469		)	(3,475		)	(1,138		)
Change in market value/change in reserve/interest credited	944			2,439			2,506			489			(1,806		)	2,626			3,383			820
Effect of currency translation	(1,635		)	(2,608		)	(3,410		)	828			1,048			(2,311		)	(4,243		)	(1,263		)
Ending balance	$	27,289		$	30,487		$	31,624		$	33,260		$	32,438		$	33,865		$	27,289		$	32,438


[1]	Includes transfers from the accumulation phase to the annuitization phase.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

TALCOTT RESOLUTION

SUPPLEMENTAL DATA—ANNUITY DEATH AND LIVING BENEFITS



	AS OF:
	Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012
U.S. Variable Annuity Business
S&P 500 index value at end of period	1,606			1,569			1,426			1,441			1,362			1,408

Total account value with guaranteed minimum death benefits (“GMDB”)	$	62,579		$	65,500		$	64,824		$	66,707		$	66,538		$	72,235
GMDB gross net amount of risk ("NAR")	5,195			5,349			6,610			7,187			8,998			7,698
% of GMDB NAR reinsured	72		%	72		%	67		%	66		%	62		%	65		%
GMDB retained NAR [2]	1,457			1,498			2,168			2,458			3,461			2,724
GMDB net GAAP liability	298			293			310			308			337			322

Total account value with guaranteed minimum withdrawal benefits (“GMWB”)	$	32,035		$	34,106		$	34,218		$	34,836		$	35,127		$	38,312
GMWB gross NAR	344			361			650			761			1,198			847
% of GMWB NAR reinsured	18		%	19		%	17		%	16		%	16		%	16		%
GMWB retained NAR [2]	282			293			540			636			1,009			711
GMWB net GAAP liability	513			651			1,022			1,179			1,790			1,355

Japan Variable Annuity Business
Yen / $	99.3			94.0			86.5			77.8			79.8			82.3
Yen / Euro	129.1			120.7			114.5			100.2			101.0			110.6

Total account value with GMDB	$	23,921		$	26,934		$	27,716		$	28,725		$	27,977		$	29,396
GMDB gross NAR	2,218			3,091			5,736			9,107			9,477			7,580
% of GMDB NAR reinsured	21		%	20		%	16		%	13		%	13		%	15		%
GMDB retained NAR	1,760			2,467			4,831			7,882			8,236			6,469

Total account value with guaranteed minimum income benefits (“GMIB”) [1]	$	22,174		$	25,129		$	25,960		$	26,917		$	26,119		$	27,350
GMIB retained NAR [2]	851			1,280			3,316			6,092			6,470			4,785
GMDB/GMIB net GAAP liability	383			468			621			874			847			704


[1]	Total GMIB account value also includes other living benefits.

[2]

Policies with a guaranteed living benefit (a GMWB in the U.S., or a GMIB in Japan) also have a guaranteed death benefit. The net amount at risk (“NAR”) for each benefit is shown, however these benefits are not additive. When a policy terminates due to death, any NAR related to GMWB or GMIB is released. Similarly, when a policy goes into benefit status on a GMWB or, by contract, the GMDB NAR is reduced to zero. When a policy goes into benefit status on a GMIB, its GMDB NAR is released.

CORPORATE

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CORPORATE

INCOME STATEMENTS



	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Jun. 30 2013			Jun. 30 2012
Fee income	$	2		$	3		$	25		$	45		$	45		$	52		$	5		$	97
Net investment income	—			13			26			8			3			(6		)	13			(3		)
Other revenues	—			—			1			—			—			—			—			—
Net realized capital gains (losses)	10			(96		)	84			9			17			15			(86		)	32
Total revenues	12			(80		)	136			62			65			61			(68		)	126
Benefits, losses and loss adjustment expenses (income)	—			—			—			1			(1		)	—			—			(1		)
Insurance operating costs and other expenses	14			26			48			57			63			76			40			139
Loss on extinguishment of debt [1]	—			213			—			—			910			—			213			910
Reinsurance loss on dispositions [2]	—			69			—			118			—			—			69			—
Interest expense	100			107			109			109			115			124			207			239
Restructuring and other costs	19			16			67			17			28			9			35			37
Total benefits and expenses	133			431			224			302			1,115			209			564			1,324
Loss before income taxes	(121		)	(511		)	(88		)	(240		)	(1,050		)	(148		)	(632		)	(1,198		)
Income tax benefit	(46		)	(153		)	(49		)	(44		)	(372		)	(52		)	(199		)	(424		)
Net loss	(75		)	(358		)	(39		)	(196		)	(678		)	(96		)	(433		)	(774		)
Less: Restructuring and other costs, after tax	(12		)	(10		)	(43		)	(11		)	(18		)	(6		)	(22		)	(24		)
Less: Loss on extinguishment of debt, after tax [1]	—			(138		)	—			—			(587		)	—			(138		)	(587		)
Less: Net reinsurance loss on dispositions, after tax [2]	—			(69		)	—			(118		)	—			—			(69		)	—
Less: Net realized capital gains (losses), after tax and DAC, excluded from core losses	6			(68		)	59			9			7			12			(62		)	19
Core losses	$	(69	)	$	(73	)	$	(55	)	$	(76	)	$	(80	)	$	(102	)	$	(142	)	$	(182	)

[1]

In the first quarter of 2013 the Company repurchased approximately $800 of outstanding senior notes and debentures. In the second quarter of 2012 the Company repurchased all outstanding 10% fixed-to-floating rate junior subordinated debentures due 2068 with a $1.75 billion aggregate principal amount held by Allianz. Loss on extinguishment of debt consists of the premium associated with repurchasing the debentures at an amount greater than the face amount, the write-off of the unamortized discount and debt issuance and other costs related to the repurchase transactions.


[2]	In the first quarter of 2013 reinsurance loss on dispositions consists of a reduction in goodwill related to the sale of the Retirement Plans business. In the third quarter of 2012, reinsurance loss on dispositions consists of a goodwill impairment charge related to the sale of the Individual Life business.

INVESTMENTS

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTMENT EARNINGS BEFORE-TAX

CONSOLIDATED



	THREE MONTHS ENDED												SIX MONTHS ENDED
	Jun. 30 2013		Mar. 31 2013		Dec. 31 2012		Sept. 30 2012		Jun. 30 2012		Mar. 31 2012		Jun. 30 2013		Jun. 30 2012
Net Investment Income (Loss)
Fixed maturities [1]
Taxable	548		554		708		710		725		735		1,102		1,460
Tax-exempt	116		116		117		118		119		120		232		239
Total fixed maturities	664		670		825		828		844		855		1,334		1,699
Equity securities, trading	1,189		2,562		2,630		635		(1,662	)	2,761		3,751		1,099
Equity securities, available-for-sale	8		6		14		5		8		10		14		18
Mortgage loans	62		65		84		88		86		79		127		165
Policy loans	22		20		29		30		30		30		42		60
Limited partnerships and other alternative investments [2]	95		66		44		28		72		52		161		124
Other [3]	45		58		71		75		82		69		103		151
Subtotal	2,085		3,447		3,697		1,689		(540	)	3,856		5,532		3,316
Investment expense	(29	)	(29	)	(29	)	(26	)	(28	)	(28	)	(58	)	(56	)
Total net investment income	2,056		3,418		3,668		1,663		(568	)	3,828		5,474		3,260
Less: Equity securities, trading	1,189		2,562		2,630		635		(1,662	)	2,761		3,751		1,099
Total net investment income excluding trading securities	867		856		1,038		1,028		1,094		1,067		1,723		2,161
Annualized investment yield, before-tax [4] [5]	4.4	%	4.3	%	4.3	%	4.2	%	4.5	%	4.4	%	4.4	%	4.4	%
Annualized investment yield, after tax [4]	3.1	%	3.0	%	2.9	%	2.9	%	3.1	%	3.0	%	3.1	%	3.0	%


[1]	Includes income on short-term bonds.


[2]	Includes income on real estate joint ventures and hedge fund investments outside of limited partnerships.


[3]	Primarily represents income from derivatives that qualify for hedge accounting and hedge fixed maturities.

[4]

Yields calculated using annualized net investment income (excluding income related to equity securities, trading) divided by the monthly average invested assets at cost, amortized cost, or adjusted carrying value, as applicable, excluding equity securities, trading, repurchase agreement and dollar roll collateral, and consolidated variable interest entity non-controlling interests. Yield calculations for the three months ended March 31, 2013 and six months ended June 30, 2013 exclude assets transfered due to the sale of the Retirement Plans and Individual Life businesses. Yield calculations for all periods exclude income and assets associated with the disposal of the Hartford Life International Limited business.


[5]	Current quarter annualized investment yield, before tax, of 4.4% was consistent with the second quarter 2012 annualized yield excluding the impact of the sale of the Retirement Plans and Individual Life businesses of 4.4%.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTMENT EARNINGS BEFORE-TAX

PROPERTY & CASUALTY



	THREE MONTHS ENDED												SIX MONTHS ENDED
	Jun. 30 2013		Mar. 31 2013		Dec. 31 2012		Sept. 30 2012		Jun. 30 2012		Mar. 31 2012		Jun. 30 2013		Jun. 30 2012
Net Investment Income (Loss)
Fixed maturities [1]
Taxable	175		172		175		171		175		183		347		358
Tax-exempt	91		92		92		93		94		94		183		188
Total fixed maturities	266		264		267		264		269		277		530		546
Equity securities, available-for-sale	4		2		4		3		4		4		6		8
Mortgage loans	11		12		12		12		12		10		23		22
Limited partnerships and other alternative investments [2]	50		39		19		15		31		26		89		57
Other [3], [4]	16		3		9		8		10		7		19		17
Subtotal	347		320		311		302		326		324		667		650
Investment expense	(9	)	(8	)	(10	)	(7	)	(7	)	(7	)	(17	)	(14	)
Total net investment income	338		312		301		295		319		317		650		636
Annualized investment yield, before-tax [5]	4.8	%	4.5	%	4.3	%	4.2	%	4.6	%	4.5	%	4.7	%	4.5	%
Annualized investment yield, after tax [5]	3.6	%	3.5	%	3.1	%	3.2	%	3.4	%	3.4	%	3.5	%	3.4	%


[1]	Includes income on short-term bonds.


[2]	Includes income on real estate joint ventures and hedge fund investments outside of limited partnerships.


[3]	Primarily represents income from derivatives that qualify for hedge accounting and hedge fixed maturities.


[4]	Other has been adjusted to exclude P&C Corporate net investment income of ($6), $7, $1, $2, $2, and $2 for the three months ended June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012, June 30, 2012 and March 30, 2012, respectively.


[5]	Yields calculated using annualized net investment income divided by the monthly average invested assets at cost, amortized cost, or adjusted carrying value, as applicable, repurchase agreement

and dollar roll collateral, and consolidated variable interest entity non-controlling interests.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NET INVESTMENT INCOME BY SEGMENT

CONSOLIDATED



	THREE MONTHS ENDED																SIX MONTHS ENDED
	Jun. 30 2013		Mar. 31 2013		Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Jun. 30 2013		Jun. 30 2012
Net Investment Income (Loss)
Commercial Markets	$	262	$	240	$	228		$	222		$	239		$	235		$	502	$	474
Consumer Markets	39		37		37			38			41			43			76		84
P&C Other Operations	37		35		36			35			39			39			72		78
Total Property & Casualty	338		312		301			295			319			317			650		636
Group Benefits	100		97		101			98			107			99			197		206
Mutual Funds	—		—		(1		)	(1		)	—			(1		)	—		(1		)
Talcott Resolution [1]	1,618		2,996		3,241			1,263			(997		)	3,419			4,614		2,422
Corporate	—		13		26			8			3			(6		)	13		(3		)
Total net investment income	2,056		3,418		3,668			1,663			(568		)	3,828			5,474		3,260
Less: Equity securities, trading	1,189		2,562		2,630			635			(1,662		)	2,761			3,751		1,099
Total net investment income excluding trading securities	$	867	$	856	$	1,038		$	1,028		$	1,094		$	1,067		$	1,723	$	2,161

[1] Includes equity securities, trading.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMPONENTS OF NET REALIZED CAPITAL GAINS (LOSSES)

CONSOLIDATED



	THREE MONTHS ENDED																	SIX MONTHS ENDED
	Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012		Jun. 30 2013			Jun. 30 2012
Net Realized Capital Gains (Losses)
Gross gains on sales [1]	$	211		$	1,717		$	155		$	194		$	245		227		1,928			472
Gross losses on sales	(118		)	(82		)	(54		)	(131		)	(158		)	(97	)	(200		)	(255		)
Net impairment losses [2]	(12		)	(21		)	(185		)	(37		)	(98		)	(29	)	(33		)	(127		)
Valuation allowances on mortgage loans	—			—			13			—			—			1		—			1
Japan fixed annuity contract hedges, net [3]	1			3			6			(24		)	2			(20	)	4			(18		)
Periodic net coupon settlements on credit derivatives/Japan [4]	—			(6		)	(11		)	2			4			(5	)	(6		)	(1		)
Results of variable annuity hedge program
U.S. GMWB derivatives, net	(31		)	47			68			381			(115		)	185		16			70
U.S. macro hedge	(47		)	(85		)	(48		)	(109		)	6			(189	)	(132		)	(183		)
Total U.S. program	(78		)	(38		)	20			272			(109		)	(4	)	(116		)	(113		)
International program	(742		)	(171		)	(810		)	(176		)	720			(1,201	)	(913		)	(481		)
Total results of variable annuity hedge program	(820		)	(209		)	(790		)	96			611			(1,205	)	(1,029		)	(594		)
Other net gain (loss) [5]	90			204			388			(5		)	(39		)	200		294			161
Total net realized capital gains (losses), before tax and DAC	$	(648	)	$	1,606		$	(478	)	$	95		$	567		(928	)	$	958		$	(361	)
Less: Realized gain on dispositions, before tax	1			1,574			—			—			—			—		1,575			—
Less: Realized gains (losses), included in core earnings, before tax	2			(5		)	(10		)	9			9			(1	)	(3		)	8
Total net realized capital gains (losses) and other, before tax and DAC, excluded from core earnings (losses)	(651		)	37			(468		)	86			558			(909	)	(614		)	(369		)
Less: Impacts of DAC	(6		)	(6		)	(31		)	(6		)	(25		)	(44	)	(12		)	(69		)
Less: Impacts of tax	(232		)	13			(174		)	35			218			(328	)	(208		)	(110		)
Total net realized capital gains (losses), net of tax and DAC, excluded from core earnings (losses)	$	(413	)	$	19		$	(282	)	$	61		$	382		(537	)	$	(394	)	$	(189	)


[1]	Includes $1.5 billion of gains for the three months ended March 31, 2013 relating to the sales of the Retirement Plans and Individual Life businesses .


[2]	Includes $177 of intent-to-sell impairments for the three months ended December 31, 2012 relating to the sales of the Retirement Plans and Individual Life businesses.


[3]	Relates to the Japan fixed annuity product (adjustment of product liability for changes in spot currency exchange rates, related derivative hedging instruments, excluding periodic net coupon settlements, and Japan FVO securities).


[4]	Included in core earnings.

[5]

Primarily consists of transactional foreign currency re-valuation associated with the internal reinsurance of the Japan variable annuity business, which is offset in AOCI, gains and losses on non-qualifying derivatives and Japan 3Win related foreign currency swaps. Includes $71 and $110 of derivative gains relating to the sales of the Retirement Plans and Individual Life businesses for the three months ended March 31, 2013 and December 31, 2012, respectively.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMPOSITION OF INVESTED ASSETS

CONSOLIDATED



	June 30, 2013				March 31, 2013				December 31, 2012				September 30, 2012				June 30, 2012
	Amount [1]		Percent		Amount [1] [2]		Percent		Amount [1]		Percent		Amount [1]		Percent		Amount [1]		Percent
Total investments	$	105,520	100.0	%	$	114,838	100.0	%	$	134,250	100.0	%	$	137,168	100.0	%	$	134,935	100.0	%
Less: Equity securities, trading	23,362		22.1	%	28,099		24.5	%	28,933		21.6	%	29,980		21.9	%	29,215		21.7	%
Total investments excluding trading securities	$	82,158	77.9	%	$	86,739	75.5	%	$	105,317	78.4	%	$	107,188	78.1	%	$	105,720	78.3	%
Asset-backed securities (“ABS”)	$	2,453	3.8	%	$	2,422	3.5	%	$	2,763	3.2	%	$	2,758	3.2	%	$	3,002	3.5	%
Collateralized debt obligations (“CDOs”)	2,623		4.0	%	2,558		3.7	%	3,040		3.5	%	3,072		3.5	%	3,037		3.6	%
Commercial mortgage-backed securities (“CMBS”)	4,733		7.3	%	5,205		7.5	%	6,321		7.4	%	6,273		7.2	%	6,346		7.4	%
Corporate	29,666		45.7	%	31,468		45.2	%	44,049		51.3	%	43,433		50.1	%	42,983		50.5	%
Foreign government/government agencies	3,825		5.9	%	3,927		5.6	%	4,136		4.8	%	4,216		4.9	%	3,598		4.2	%
Municipal	12,569		19.4	%	13,238		19.0	%	14,361		16.7	%	14,291		16.5	%	14,125		16.6	%
Residential mortgage-backed securities (“RMBS”)	5,167		8.0	%	6,716		9.6	%	7,480		8.7	%	7,477		8.6	%	6,981		8.2	%
U.S. Treasuries	3,845		5.9	%	4,133		5.9	%	3,772		4.4	%	5,206		6.0	%	5,155		6.0	%
Total fixed maturities, AFS [3]	$	64,881	100.0	%	$	69,667	100.0	%	$	85,922	100.0	%	$	86,726	100.0	%	$	85,227	100.0	%
U.S. government/government agencies	$	8,588	13.2	%	$	10,563	15.2	%	$	10,975	12.8	%	$	12,458	14.4	%	$	11,980	14.1	%
AAA	6,638		10.2	%	7,265		10.4	%	9,220		10.7	%	9,128		10.5	%	9,002		10.6	%
AA	13,273		20.5	%	13,877		19.9	%	16,104		18.7	%	16,305		18.8	%	16,290		19.1	%
A	15,514		23.9	%	17,007		24.4	%	22,650		26.4	%	21,923		25.3	%	21,207		24.9	%
BBB	16,570		25.6	%	17,079		24.5	%	22,689		26.4	%	22,665		26.1	%	22,528		26.3	%
BB & below	4,298		6.6	%	3,876		5.6	%	4,284		5.0	%	4,247		4.9	%	4,220		5.0	%
Total fixed maturities, AFS [3]	$	64,881	100.0	%	$	69,667	100.0	%	$	85,922	100.0	%	$	86,726	100.0	%	$	85,227	100.0	%


[1]	Represents the value at which the assets are carried on the Consolidating Balance Sheets. Consolidating Balance Sheets as of June 30, 2013 and December 31, 2012 are presented on page 4.


[2]	Total investments as of December 31, 2012 include $17.3 billion in carrying value of assets transferred by the Company in connection with the sale of the Retirement Plans and Individual Life businesses in January 2013.


[3]	Available-for-sale ("AFS").

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTED ASSET EXPOSURES

AS OF JUNE 30, 2013



	Cost or Amortized Cost		Fair Value		Percent of Total Invested Assets [1]
Top Ten Corporate and Equity, AFS, Exposures by Sector
Utilities	$	5,679	$	6,100	7.4	%
Financial Services	5,695		5,773		7.0	%
Consumer non-cyclical	3,577		3,890		4.7	%
Technology and communications	3,164		3,388		4.1	%
Basic Industry	3,009		3,083		3.8	%
Energy	2,520		2,696		3.3	%
Capital goods	2,175		2,347		2.9	%
Consumer cyclical	1,778		1,895		2.3	%
Transportation	996		1,060		1.3	%
Other	235		268		0.3	%
Total	$	28,828	$	30,500	37.1	%
Top Ten Exposures by Issuer [2]
Government of Japan [3]	$	2,552	$	2,499	3.0	%
State of California	380		402		0.5	%
National Grid PLC	268		292		0.4	%
AT&T Inc.	241		280		0.3	%
General Electric Co.	301		277		0.3	%
State of Illinois	273		271		0.3	%
Commonwealth of Massachusetts	243		264		0.3	%
Glencore Xstrata PLC	243		244		0.3	%
Goldman Sachs Group Inc.	229		243		0.3	%
HSBC Holding PLC	232		223		0.3	%
Total	$	4,962	$	4,995	6.1	%


[1]	Excludes equity securities, trading.


[2]	Excludes U.S. government and government agency securities, mortgage obligations issued by government sponsored agencies, cash equivalent securities, exposures resulting from

derivative transactions and equity securities, trading.


[3]	These securities are included in short-term investments, fixed maturities, available-for-sale, and fixed maturities, fair value option on the Company’s Consolidating Balance Sheets.