8K Earnings Release Cover Page 09.30.13

0000874766-13-000064.txt : 20131028 0000874766-13-000064.hdr.sgml : 20131028 20131028161856 ACCESSION NUMBER: 0000874766-13-000064 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20131028 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20131028 DATE AS OF CHANGE: 20131028 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: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13958 FILM NUMBER: 131173327 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 09.30.13

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): October 28, 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 October 28, 2013, The Hartford Financial Services Group, Inc. (the "Company") issued (i) a press release announcing its financial results for the quarter ended September 30, 2013, and (ii) its Investor Financial Supplement (“IFS”) relating to its financial results for the quarter ended September 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 October 28, 2013

99.2		Investor Financial Supplement of The Hartford Financial Services Group, Inc. for the quarter ended September 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:	October 28, 2013	By:	/s/ Scott R. Lewis
		Name:	Scott R. Lewis
		Title:	Senior Vice President and Controller

EX-99.1 2 ex991earningsnewsrelease09.htm EXHIBIT Ex 99.1 Earnings News Release 09.30.13

NEWS RELEASE

The Hartford Reports Third Quarter 2013 Financial Results


•	Core earnings* increased 17% to $505 million, or $1.03 per diluted share, compared with $433 million, or $0.90 per diluted share, in third quarter 2012


•	Net income of $293 million, or $0.60 per diluted share, compared with $13 million, or $0.01 per diluted share, in third quarter 2012


•	Property & Casualty (P&C) combined ratio, before catastrophes and prior year development*, improved to 92.8 from 96.3 in third quarter 2012


•	Standard Commercial renewal written pricing increased 8% in third quarter 2013, consistent with the last four quarters


•	31% Japan variable annuity annualized full surrender rate and 20% in the U.S. for third quarter 2013


•	Common equity and warrant share repurchases totaled $241 million during the quarter

HARTFORD, Conn., October 28, 2013 – The Hartford (NYSE:HIG) reported core earnings of $505 million for the three months ended Sept. 30, 2013 (third quarter 2013), up 17% from $433 million in third quarter 2012. Core earnings per diluted share rose 14% to $1.03 from $0.90 in third quarter 2012. The improvement from the prior year quarter was principally due to higher core earnings in P&C Commercial, Group Benefits, Talcott Resolution and Corporate.

The company reported third quarter 2013 net income of $293 million, or $0.60 per diluted share, which included realized capital losses of $105 million, after-tax, principally from variable annuity (VA) hedging programs, and an unlock charge of $67 million after-tax. Third quarter 2012 net income totaled $13 million, or $0.01 per diluted share, which included realized capital gains of $62 million, after-tax, principally from VA hedging programs, and an unlock charge of $79 million, after-tax. Third quarter 2012 net income was also impacted by a net loss of $388 million, after-tax, related to the company's sale of its Individual Life business.

“The Hartford’s third quarter and year-to-date results demonstrate our significant progress transforming the company,” said The Hartford’s Chairman, President and CEO Liam E. McGee. “Margins are improving in our go-forward businesses, contributing to a 17% year-over-year increase in core earnings, and the company continues to reduce its overall risk profile. We are ahead of plan in executing the strategy we outlined in March 2012 and, with continued strong surrenders in Talcott, the variable annuity block is running off faster than anticipated.”

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

“With our focus on margin improvement, pricing in Property & Casualty Standard Commercial was a strong 8%, consistent with the past four quarters, and Group Benefits has meaningfully improved profitability over the last several quarters. Overall Property & Casualty written premiums were up 2%, with 2% growth in Small Commercial and Middle Market and 3% growth in Consumer Markets. Consumer Markets grew written premiums for the fourth consecutive quarter while expanding underlying margins. We are also pleased that Mutual Funds generated 35% sales growth and solid fund performance this quarter,” added McGee.

CONSOLIDATED FINANCIAL RESULTS



($ in millions except per share data)	Three Months Ended
($ in millions except per share data)	Sept. 30 2013	Sept. 30 2012	Change²
Core earnings (losses):
Property & Casualty	$263	$275	(4)%
Group Benefits	$36	$23	57%
Mutual Funds	$18	$19	(5)%
Sub-Total	$317	$317	—%
Talcott Resolution	$204	$192	6%
Corporate	($16)	($76)	79%
Core earnings	$505	$433	17%
Net income	$293	$13	NM
Net income available to common shareholders per diluted share¹	$0.60	$0.01	NM
Weighted average diluted common shares outstanding	490.6	482.7	2%
Core earnings available to common shareholders per diluted share¹	$1.03	$0.90	14%


[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

Third quarter 2013 net income and core earnings included the following items that increased net income and core earnings by a total of $87 million, after-tax, or $0.18 per diluted share, compared with items that increased net income and core earnings by a total of $133 million, after-tax, or $0.28 per diluted share, in third quarter 2012:


•	Third quarter 2013 catastrophe losses favorable to the company's forecast by $43 million, after-tax, or $0.09 per diluted share compared with third quarter 2012 catastrophe losses favorable to forecast by $68 million, after-tax, or $0.14 per diluted share;


•	Third quarter 2013 unfavorable prior year loss and loss adjustment expense reserve development (PYD) of $11 million, after-tax, or $0.02 per diluted share, compared with third quarter 2012 favorable PYD of $21 million, after-tax, or $0.04 per diluted share;


•	A third quarter 2013 benefit of $18 million, after-tax, or $0.04 per diluted share, from the resolution of items under the company's spin-off agreement with its former parent;


•	A $37 million, after-tax, or $0.08 per diluted share, third quarter 2013 insurance recovery from the company's insurers for past legal expenses associated with closed litigation; and


•	Core earnings of $44 million, or $0.09 per diluted share, in third quarter 2012 from the Retirement Plans and Individual Life businesses that were sold in first quarter 2013.

PROPERTY & CASUALTY (CONSOLIDATED)

Third Quarter 2013 Highlights:


•	Combined ratio, before catastrophes and PYD, improved to 92.8 from 96.3 in third quarter 2012


•	Written premiums grew 2% over third quarter 2012


•	Core earnings declined 4% from third quarter 2012 due to higher catastrophe losses and unfavorable PYD



PROPERTY & CASUALTY
($ in millions)	Three Months Ended
	Sept. 30 2013	Sept. 30 2012	Change
Underwriting gain*	$95	$115	(17)%
Investment income	$296	$295	—%
Core earnings	$263	$275	(4)%
Net income	$264	$282	(6)%
Expense ratio	28.1	27.3	(0.8)
Combined ratio	96.2	95.4	(0.8)
Combined ratio before catastrophes and PYD	92.8	96.3	3.5
PYD, before tax	$17	$(33)	NM
Current accident year catastrophe losses, before tax	$66	$10	NM
Written premiums	$2,556	$2,512	2%

Third quarter 2013 P&C (Consolidated) net income was $264 million and core earnings were $263 million, decreases of 6% and 4%, respectively, from third quarter 2012. The decreases were primarily due to higher catastrophe losses in P&C Commercial and Consumer Markets and less favorable PYD in Consumer Markets, partially offset by an increase in current accident year margins before catastrophes. Third quarter 2013 combined ratio and underwriting gain were 96.2 and $95 million, respectively, compared with 95.4 and $115 million in third quarter 2012, reflecting the impact of these items.

Catastrophe losses totaled $66 million, before tax, in third quarter 2013, including $11 million, before tax, of unfavorable development on first half 2013 catastrophe losses. Third quarter 2012 catastrophe losses totaled $10 million, before tax, net of favorable development on first half 2012 catastrophe losses of $19 million, before tax.

Unfavorable PYD totaled $17 million, before tax, in third quarter 2013 compared with favorable PYD of $33 million, before tax, in third quarter 2012. Unfavorable PYD in third quarter 2013 included unfavorable PYD of $26 million from P&C Commercial and $2 million from P&C Other Operations. These amounts were partially offset by favorable PYD of $11 million from Consumer Markets, principally reflecting favorable PYD on catastrophes, including Storm Sandy.

Before catastrophes and PYD, the P&C (Consolidated) third quarter 2013 combined ratio improved to 92.8 compared with 96.3 in third quarter 2012, reflecting pricing and underwriting initiatives in the P&C Commercial and Consumer Markets segments.

Third quarter 2013 written premiums increased 2% over the prior year period, reflecting 1% growth in P&C Commercial Markets and 3% growth in Consumer Markets.

P&C Commercial

Third Quarter 2013 Highlights:


•	Underwriting gain improved to $30 million compared with $14 million in third quarter 2012 due to better current accident year results partially offset by higher catastrophes and unfavorable PYD


•	Standard Commercial renewal written pricing increased 8% in third quarter 2013, consistent with the last four quarters


•	Middle Market workers’ compensation and property written pricing each increased 9% during third quarter 2013



P&C COMMERCIAL
($ in millions)	Three Months Ended
	Sept. 30 2013	Sept. 30 2012	Change
Underwriting gain	$30	$14	114%
Combined ratio	98.1	99.1	1.0
Combined ratio before catastrophes and PYD	93.3	97.5	4.2
Small Commercial	87.1	92.6	5.5
Middle Market	95.9	100.7	4.8
Specialty	103.0	105.0	2.0
Written premiums	$1,567	$1,552	1%
Standard commercial price increases	8%	8%	—

P&C Commercial underwriting gain was $30 million in third quarter 2013, a 114% increase from $14 million in third quarter 2012 due to better current accident year results in each of its three businesses (Small Commercial, Middle Market and Specialty), partially offset by higher catastrophe losses and an increase in unfavorable PYD. Third quarter 2013 catastrophe losses totaled $48 million, before tax, compared with $10 million, before tax, in third quarter 2012. The increase in catastrophe losses was largely driven by unfavorable development on second quarter 2013 catastrophes of $26 million before tax.

Unfavorable PYD increased to $26 million, before tax, in third quarter 2013 compared with $15 million, before tax, in third quarter 2012. Unfavorable PYD in third quarter 2013 was largely due to increased losses on commercial auto, which was largely offset by favorable development on general liability, workers’ compensation and prior year catastrophes. The company has experienced increased claims frequency and large loss severity, particularly in its Specialty Commercial auto book, and has taken actions to non-renew specific programs and policies to address this issue.

The combined ratio before catastrophes and PYD improved to 93.3 in third quarter 2013 compared with 97.5 in third quarter 2012, reflecting improved underwriting margins in Small Commercial, Middle Market and Specialty driven by the company's pricing and underwriting initiatives since mid-year 2011. Before catastrophes and PYD, the third quarter 2013 combined ratio for Small Commercial was 87.1, a significant improvement from 92.6 in third quarter 2012, while Middle Market also improved to 95.9 from 100.7 in third quarter 2012 and Specialty improved to 103.0 from 105.0 in third quarter 2012.

Renewal written pricing in Standard Commercial, which is comprised of Small Commercial and Middle Market, remained strong in third quarter 2013, with rate increases in all business lines. Renewal written pricing increased 8% in Standard Commercial, consistent with the last four quarters. Middle Market renewal written pricing increases averaged 8%, including increases of 9% in both Middle Market workers' compensation and property.

Written premiums grew 1% from $1,552 million in third quarter 2012 to $1,567 million in third quarter 2013, driven by growth in Small Commercial and Middle Market, which were each up 2%. Written premium growth reflects higher pricing on renewals in Small Commercial, stronger new business production in Middle Market and strong retention in both business lines. New business premium for Small Commercial and Middle Market totaled $222 million, up 14% from $195 million in third quarter 2012 driven by Middle Market property and general liability. Policy count retention in Small Commercial was 81% in third quarter 2013 compared with 84% in third quarter 2012. Middle Market policy count retention for third quarter 2013 was 80%, an improvement from 78% in third quarter 2012.

Consumer Markets

Third Quarter 2013 Highlights:


•	Combined ratio, excluding catastrophes and PYD, improved 2.2 points to 91.1 from 93.3 in third quarter 2012


•	Written premiums rose 3% compared with third quarter 2012


•	Policies in force grew sequentially for the third consecutive quarter


•	AARP licensing agreement extended through January 1, 2023



CONSUMER MARKETS
($ in millions)	Three Months Ended
	Sept. 30 2013	Sept. 30 2012	Change
Underwriting gain	$75	$110	(32%)
Combined ratio	91.9	87.9	(4.0)
Combined ratio before catastrophes and PYD	91.1	93.3	2.2
Written premiums	$988	$960	3%

Consumer Markets underwriting gain of $75 million in third quarter 2013, a 32% decline from third quarter 2012 due to higher current accident year catastrophe losses and less favorable PYD. Before catastrophes and PYD, the third quarter 2012 combined ratio improved 2.2 points to 91.1 from 93.3 in the prior year period, driven by earned pricing increases exceeding loss costs in auto and homeowners.

Third quarter 2013 current accident year catastrophe losses totaled $18 million, before tax, compared with $0 million in third quarter 2012. Third quarter 2012 included $24 million of favorable development on 2012 prior quarter catastrophe losses that entirely offset third quarter 2012 catastrophes of $24 million, before tax. Similarly, third quarter 2013 included $17 million, before tax, of favorable development on 2013 prior quarter catastrophes that partially offset $35 million, before tax, of current quarter catastrophes. Favorable PYD, largely from prior year catastrophe losses, was $11 million, before tax, in third quarter 2013 compared with favorable PYD of $49 million, before tax, in third quarter 2012, principally from auto liability.

The auto combined ratio, before catastrophes and PYD, was 96.8 in third quarter 2013, 3.3 points better than 100.1 in third quarter 2012 as a result of earned pricing increases and moderate liability and physical damage loss cost trends. Homeowners combined ratio, before catastrophes and PYD, was 77.6, 0.6 points better than 78.2 in third quarter 2012 due to earned pricing increases and favorable non-catastrophe weather and non-weather claim frequency.

Third quarter 2013 written premiums rose 3% from third quarter 2012 as a result of increasing premium retention, higher renewal written price increases and higher new business premium. Third quarter 2013 premium retention for auto and homeowners each increased by 1 point to 88% and 92%, respectively. Third quarter 2013 renewal written price increase averaged 5% in auto and 8% in homeowners, up 1 point and 2 points, respectively, compared with 4% and 6%, respectively, in third quarter 2012. New business premium totaled $135 million, 16% higher than third quarter 2012 new business premium of $116 million due to strong auto new business in AARP Agency and AARP Direct.

During the quarter, The Hartford announced an extension of its agreement with AARP to offer home and auto insurance products to its members. The Hartford's relationship with AARP now runs through January 1, 2023, and marks the fourth extension of the program since the program's inception in 1984.

P&C Other Operations

Third quarter 2013 underwriting loss was $10 million compared with $9 million in third quarter 2012. Third quarter 2013 results included unfavorable PYD of $2 million, before tax, while third quarter 2012 had unfavorable PYD of $1 million, before tax.

GROUP BENEFITS

Third Quarter 2013 Highlights:


•	Core earnings of $36 million, up 57% from $23 million in third quarter 2012, due to improved group long-term disability results


•	After-tax core earnings margin of 3.9% improved significantly compared with 2.2% in third quarter 2012


•	Loss ratio improved 2.6 points from third quarter 2012 to 76.7% driven by improving long-term disability pricing and loss trends



GROUP BENEFITS
($ in millions)	Three Months Ended
	Sept. 30 2013	Sept. 30 2012	Change
Fully insured premiums¹	$817	$926	(12%)
Loss ratio	76.7%	79.3%	2.6
Core earnings	$36	$23	57%

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

Group Benefits third quarter 2013 net income rose 3% to $31 million compared with $30 million in third quarter 2012. Although core earnings improved significantly, the increase was offset by an unfavorable change in after-tax net realized capital gains (losses) of $12 million. Core earnings, which exclude realized capital gains and losses, were $36 million in third quarter 2013, a 57% increase compared with $23 million in third quarter 2012, due to improved group long-term disability results.

The loss ratio of 76.7% in third quarter 2013 compared with 79.3% in third quarter 2012, a 2.6 point improvement. The group disability loss ratio, which includes both short-term and long-term disability, improved by 3.6 points to 87.9% from 91.5% in third quarter 2012, reflecting improved pricing and favorable long-term disability recoveries and incidence trends.

In third quarter 2013, fully insured premiums in Group Benefits were $817 million, a 12% decrease compared with $926 million in third quarter 2012. The reduction in premiums was primarily due to new business and renewal pricing discipline, the non-renewal of the largest account in this segment due to pricing and other considerations, and management actions on the Association block of business.

MUTUAL FUNDS

Third Quarter 2013 Highlights:

•Mutual Funds gross sales rose 35% versus third quarter 2012


•	Core earnings were $18 million, down 5% compared with $19 million in third quarter 2012


•	Total Mutual Funds assets under management totaled $66.8 billion at Sept. 30, 2013, up 9% since Sept. 30, 2012



MUTUAL FUNDS
($ in millions)	Three Months Ended
	Sept. 30 2013	Sept. 30 2012	Change
Core earnings	$18	$19	(5%)
Total Mutual Funds sales	$3,787	$2,798	35%
Total Mutual Funds net flows	$(645)	$(782)	(18%)
Total Mutual Funds assets under management	$66,759	$61,282	9%
Average Mutual Funds assets under management	$65,183	$60,313	8%
Annuity assets under management	$25,638	$26,839	(4%)
Total assets under management	$92,397	$88,121	5%
Average assets under management	$90,953	$87,176	4%

Third quarter 2013 net income and core earnings for Mutual Funds were comparable to third quarter 2012 due to higher revenue from the change in average assets under management, offset by increased expenses. The change in operating expenses was driven by higher variable distribution-related expenses combined with increased marketing and advertising expenses.

Total assets under management rose 5% to $92.4 billion at Sept. 30, 2013 from $88.1 billion at Sept. 30, 2012 due to 9% growth in Mutual Funds assets during that time period, partially offset by a 4% decline in Annuity assets, reflecting surrender activity on the company's U.S. VA block. Mutual Funds assets under management increased due to strong sales and market appreciation, partially offset by redemptions. During third quarter 2013, Mutual Funds sales rose 35% to $3.8 billion from $2.8 billion in the third quarter 2012 while net outflows declined to $0.6 billion, compared with $0.8 billion in third quarter 2012.

TALCOTT RESOLUTION

Third Quarter 2013 Highlights:


•	Japan VA annualized full surrender rate of 31% and U.S. VA of 20% in the quarter


•	Core earnings of $204 million, after-tax, included Enhanced Surrender Value (ESV) program cost of $11 million, after-tax and deferred acquisition costs (DAC)


•	Net charge for annual assumptions study of $59 million, after-tax



TALCOTT RESOLUTION
($ in millions)	Three Months Ended
	Sept. 30 2013	Sept. 30 2012	Change
Core earnings	$204	$192	6%
Net income (loss)	$7	$(121)	NM
U.S. VA annualized full surrender rate¹	20.3%	10.4%	9.9
Japan VA annualized full surrender rate¹	30.8%	3.0%	27.8
U.S. VA account value	$61,512	$66,707	(8%)
Japan VA account value	$22,846	$28,725	(20%)

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

Talcott Resolution third quarter 2013 net income was $7 million compared with net loss of $121 million in third quarter 2012. The third quarter 2013 net income included the following significant items, which are not included in core earnings:


•	Net realized capital losses of $123 million, after-tax and DAC, principally from International VA hedging programs but also including a $49 million, after-tax, benefit on the fair value liability for U.S. VA living benefits;


•	Total unlock charge of $67 million, after-tax, including a $108 million charge from the company's annual assumptions study; and


•	Loss from discontinued operations of $6 million, after-tax, from the sale of the company's U.K. VA business, which is expected to close by year-end 2013;

The annual assumptions update study in third quarter 2013 resulted in a charge to net income of $59 million, after-tax, compared with a benefit of $93 million, after-tax, in third quarter 2012. The third quarter 2013 charge included an unlock of $108 million, after-tax, resulting from faster runoff of U.S. VA account values due to elevated surrender rates, and the impact of persistently low interest rates on U.S. fixed annuities. The third quarter 2013 assumptions update study also resulted in a realized capital gain of $49 million, after-tax, driven by the decline in the value of future benefit guarantees on U.S. variable annuities due to elevated surrender rates.

Talcott Resolution third quarter 2013 core earnings were $204 million, a 6% increase compared with $192 million in third quarter 2012 due to higher U.S. and International Annuity core earnings. Third quarter 2012 included core earnings from the Individual Life and Retirement Plans businesses which were sold in January 2013; these businesses generated third quarter 2012 core earnings of $44 million. Core earnings rose despite the loss of earnings from these sold businesses principally because of lower DAC amortization, lower taxes, and higher limited partnership and other alternative investment income compared with the prior year quarter. Limited partnership and other alternative investment income totaled $22 million, before tax, for the segment in third quarter 2013 compared to $6 million, before tax, in third quarter 2012. These favorable items in the third quarter of 2013 were partially offset by the cost of the 2013 Enhanced Surrender Value (ESV) program, which totaled $11 million, after-tax and DAC, in third quarter 2013.

Third quarter 2013 U.S. VA annualized full surrender rate increased to 20.3% compared with 10.4% in third quarter 2012. The ESV program and other initiatives contributed approximately 6 points to the third quarter 2013 full surrender rate. The increase in the U.S. VA surrender rate reflects the improved moneyness level and aging of the block. At Sept. 30, 2013, approximately 91% of contracts with living benefit guarantees were out-of-the-money. This compares with 74% of contracts at Sept. 30, 2012. Average moneyness of 9% for contracts in-the-money remained relatively flat year-over-year.

U.S. VA account values declined to $61.5 billion at Sept. 30, 2013 from $66.7 billion at Sept. 30, 2012 due to negative net flows of $14.0 billion over the period, partially offset by strong U.S. equity market appreciation.

The Japan VA annualized full surrender rate was 30.8% in third quarter 2013, down slightly from 34.8% in second quarter 2013 but up materially from 3.0% in third quarter 2012. The year-over-year increase in the Japan VA surrender rate was due to the improved moneyness level of the book and a decrease in the percentage of the book subject to surrender charges. At Sept. 30, 2013, approximately 53% of the contracts with living benefit guarantees were out-of-the-money, a substantial improvement from 2% of contracts at Sept. 30, 2012. Average moneyness was 5% for contracts in-the-money at Sept. 30, 3013 compared to 19% at Sept. 30, 2012.

Due largely to the increase in surrenders, Japan VA account values declined by 20% to $22.8 billion at Sept. 30, 2013 from $28.7 billion at Sept. 30, 2012 principally due to net negative flows of $6.0 billion.

CORPORATE

Net loss in Corporate totaled $28 million in third quarter 2013 compared with a net loss of $196 million in third quarter 2012. Third quarter 2012 net loss included a $118 million, after-tax, loss related to the sale of the Individual Life business. In addition, third quarter 2013 net loss and core losses included an $18 million, after-tax, benefit from the resolution of items under The Hartford's spin-off agreement with its former parent company and a $37 million, after-tax, insurance recovery from the company's insurers for past legal expenses associated with closed litigation.

Third quarter 2013 Corporate core losses totaled $16 million, a $60 million decrease from core losses of $76 million in third quarter 2012 due principally to those two items, as well as lower interest expense as a result of debt repayments and refinancing. Interest expense totaled $94 million, before tax, in the quarter, a decrease of 14% from $109 million, before tax, in third quarter 2012 due to the Allianz debt refinancing in April 2012 and $1.3 billion of debt repayments in second and third quarter 2013.

INVESTMENTS

Third Quarter 2013 Highlights:


•	Annualized pre-tax investment yield of 4.2%, consistent with third quarter 2012


•	Annualized pre-tax investment yield, excluding limited partnerships and other alternative investments, was 4.1%, before tax, up from 4.0% in third quarter 2012, excluding the Individual Life and Retirement Plans businesses that were sold in January 2013


•	Net impairment losses including mortgage loan loss reserves totaled $26 million, before tax, down from $37 million, before tax, in third quarter 2012



INVESTMENTS
($ in millions)	Three Months Ended
Amounts presented before tax	Sept. 30 2013		Sept. 30 2012		Change
Net investment income, excluding trading securities		$812		$1,028	(21%)
Net impairment losses including mortgage loan loss reserves		$26		$37	(30%)
Annualized investment yield¹	4.2%		4.2%		—
Annualized investment yield, excluding limited partnerships and other alternative investments	4.1%		4.2%		(0.1)
Annualized investment yield, excluding Retirement Plans, Individual Life and limited partnerships and other alternative investments	4.1%		4.0%		0.1

[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 U.K. variable annuity business.

Third quarter 2013 net investment income, excluding trading securities associated with the company's Japan VA block, totaled $812 million, before tax, an approximately 1% increase over third quarter 2012, adjusted for the sales of the Individual Life and Retirement Plans businesses, due to higher investment income on limited partnerships and other alternative investments.

Annualized investment yield, before tax, which includes limited partnerships and other alternative investments, was 4.2% in third quarter 2013, up approximately 15 basis points compared with third quarter 2012, adjusted for the sales of the Individual Life and Retirement Plans businesses. Limited partnership and other alternative investments generated before tax income of $46 million for an annualized return of 6% in third quarter 2013 compared with $28 million, before tax, for an annualized return of 4% in third quarter 2012.

Annualized investment yield, excluding limited partnerships and other alternative investments, increased to 4.1%, before tax, in third quarter 2013 compared to 4.0% in third quarter 2012, excluding the impact of the sold businesses. The portfolio yield increased due to a modest allocation increase to higher yielding asset classes during 2013. During the quarter, new money yields were comparable to the yield on securities that matured or were sold during third quarter 2013.

Net impairment losses for third quarter 2013, including mortgage loan loss reserves, totaled $26 million, before tax, compared with $37 million, before tax, in third quarter 2012.

Total invested assets, excluding trading securities associated with the company's Japan VA block, were $80.7 billion as of Sept. 30, 2013 compared with $105.3 billion at Dec. 31, 2012, and declined principally due to the sales of the Retirement Plans and Individual Life businesses and the impact of higher interest rates on invested assets, which are recorded at market value.

Net unrealized gains on available-for-sale securities were $1.8 billion as of Sept. 30, 2013, down from $6.2 billion at Dec. 31, 2012, with $1.4 billion of the decrease resulting from the sales of the Retirement Plans and Individual Life businesses and the balance primarily driven by rising interest rates and wider credit spreads in certain sectors.

STOCKHOLDERS’ EQUITY



($ in millions)	As of
	Sept. 30 2013	Jun. 30 2013	Dec. 31 2012
Stockholders' equity	$18,928	$19,013	$22,447
Stockholders' equity (ex. AOCI)¹	$18,945	$18,939	$19,604
Book value per diluted share	$38.87	$38.59	$45.80
Book value per diluted share (ex. AOCI)*	$38.91	$38.44	$40.00

[1] Accumulated other comprehensive income (AOCI)

The Hartford’s stockholders’ equity was $18.9 billion as of Sept. 30 2013, a decrease of $3.5 billion, or 16%, from $22.4 billion as of Dec. 31, 2012, principally due to the decrease in AOCI from $2.8 billion at Dec. 31, 2012 to $0.0 billion at Sept. 30, 2013. During the first nine months of 2013, shareholders' equity was also reduced by net losses of $138 million, share and warrant repurchases totaling $408 million and common and preferred dividends of $168 million.

The company repurchased 7.5 million common shares and 0.5 million share warrants totaling $241 million during third quarter 2013, bringing total 2013 repurchases to $408 million through Sept. 30, 3013. The company has $842 million of equity repurchase authorization remaining under the $1.25 billion equity repurchase plan.

Issued common shares totaled 490.9 million and diluted common shares totaled 486.9 million at Sept. 30, 2013 compared with 469.7 million and 490.1 million, respectively, at Dec. 31, 2012. The increase in common shares issued 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.

Book value per diluted common share was $38.87 as of Sept. 30, 2013, a decrease of 15% compared with $45.80 as of Dec. 31, 2012, and an increase of 1% compared with $38.59 as of June 30, 2013. Excluding AOCI, book value per diluted common share* declined 3% to $38.91 as of Sept. 30, 2013, compared with $40.00 as of Dec. 31, 2012, and increased 1% compared with $38.44 as of June 30, 2013.

CONFERENCE CALL

The Hartford will discuss its third quarter 2013 financial results in a webcast on Tuesday, Oct. 29, 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 Oct. 29, 2013.

More detailed financial information can be found in The Hartford's Investor Financial Supplement for Sept. 30, 2013 and 10-Q filing for the quarter ended Sept. 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

Thomas Hambrick Sean Rourke

860-547-9746 860-547-5688

thomas.hambrick@thehartford.com sean.rourke@thehartford.com



THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATING INCOME STATEMENTS
($ in millions)
Three Months Ended Sept. 30, 2013
	Property & Casualty			Group Benefits			Mutual Funds			Talcott Resolution			Corporate			Consolidated
Earned premiums	$	2,488		$	817		$	—		$	32		$	—		$	3,337
Fee income	—			14			171			521			2			708
Net investment income (loss)
Securities available-for-sale and other	296			96			—			414			6			812
Equity securities, trading [1]	—			—			—			878			—			878
Total net investment income	296			96			—			1,292			6			1,690
Other revenues	68			—			—			—			—			68
Net realized capital gains (losses)	2			(8		)	—			(151		)	(5		)	(162		)
Total revenues	2,854			919			171			1,694			3			5,641
Benefits, losses, and loss adjustment expenses	1,690			637			—			412			—			2,739
Benefits, losses, and loss adjustment expenses – returns credited on international variable annuities [1]	—			—			—			878			—			878
Amortization of deferred policy acquisition costs	308			8			11			267			—			594
Insurance operating costs and other expenses	494			237			132			175			(60		)	978
Interest expense	—			—			—			—			94			94
Restructuring and other costs	1			—			(1		)	1			14			15
Total benefits and expenses	2,493			882			142			1,733			48			5,298
Income (loss) from continuing operations before income taxes	361			37			29			(39		)	(45		)	343
Income tax expense (benefit)	98			6			10			(52		)	(17		)	45
Income (loss) from continuing operations	263			31			19			13			(28		)	298
Income (loss) from discontinued operations, after tax	1			—			—			(6		)	—			(5		)
Net income (loss)	264			31			19			7			(28		)	293
Less: Unlock benefit, after tax	—			—			—			(67		)	—			(67		)
Less: Restructuring and other costs, after tax	(1		)	—			1			(1		)	(9		)	(10		)
Less: Income (loss) from discontinued operations, after tax	1			—			—			(6		)	—			(5		)
Less: Loss on extinguishment of debt, after tax	—			—			—			—			—			—
Less: Net gain (loss) on dispositions, after tax	—			—			—			—			—			—
Less: Net realized capital gains (losses), after tax and DAC, excluded from core earnings	1			(5		)	—			(123		)	(3		)	(130		)
Core earnings (losses)	$	263		$	36		$	18		$	204		$	(16	)	$	505

[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 Sept. 30, 2012
	Property & Casualty			Group Benefits		Mutual Funds			Talcott Resolution			Corporate			Consolidated
Earned premiums	$	2,494		$	926	$	—		$	(19	)	$	—		$	3,401
Fee income	—			15		148			901			45			1,109
Net investment income (loss)
Securities available-for-sale and other	295			98		(1		)	628			8			1,028
Equity securities, trading [1]	—			—		—			635			—			635
Total net investment income (loss)	295			98		(1		)	1,263			8			1,663
Other revenues	64			—		—			—			—			64
Net realized capital gains	16			11		1			58			9			95
Total revenues	2,869			1,050		148			2,203			62			6,332
Benefits, losses, and loss adjustment expenses	1,694			746		—			829			1			3,270
Benefits, losses, and loss adjustment expenses – returns credited on international variable annuities [1]	—			—		—			635			—			635
Amortization of deferred policy acquisition costs	313			9		8			236			—			566
Insurance operating costs and other expenses	471			257		112			317			57			1,214
Reinsurance loss on dispositions	—			—		—			415			118			533
Interest expense	—			—		—			—			109			109
Restructuring and other costs	1			1		1			33			17			53
Total benefits and expenses	2,479			1,013		121			2,465			302			6,380
Income (loss) from continuing operations before income taxes	390			37		27			(262		)	(240		)	(48		)
Income tax expense (benefit)	106			7		9			(119		)	(44		)	(41		)
Income (loss) from continuing operations	284			30		18			(143		)	(196		)	(7		)
Income (loss) from discontinued operations, after tax	(2		)	—		—			22			—			20
Net income (loss)	282			30		18			(121		)	(196		)	13
Less: Unlock charge, after tax	—			—		—			(79		)	—			(79		)
Less: Restructuring and other costs, after tax	(1		)	—		(1		)	(21		)	(11		)	(34		)
Less: Income (loss) from discontinued operations, after tax	(2		)	—		—			22			—			20
Less: Net reinsurance loss on dispositions, after tax									(270		)	(118		)	(388		)
Less: Net realized capital gains and other, after tax and DAC, excluded from core earnings	10			7		—			35			9			61
Core earnings (losses)	$	275		$	23	$	19		$	192		$	(76	)	$	433

[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
	Sept. 30 2013			Sept. 30 2012			Change
Core earnings (losses):
P&C Commercial	$	176		$	161		9%
Consumer Markets	68			93			(27)%
P&C Other Operations	19			21			(10)%
Total Property & Casualty	263			275			(4)%
Group Benefits	36			23			57%
Mutual Funds	18			19			(5)%
Sub-total	317			317			—%
Talcott Resolution	204			192			6%
Corporate	(16		)	(76		)	79%
CONSOLIDATED CORE EARNINGS	505			433			17%
Add: Unlock charge, after tax	(67		)	(79		)	(15)%
Add: Restructuring and other costs, after tax	(10		)	(34		)	(71)%
Add: Income (loss) from discontinued operations, after tax	(5		)	20			(125)%
Add: Net reinsurance loss on dispositions, after tax	—			(388		)	(100)%
Add: Net realized capital gains (losses), after tax and DAC, excluded from core earnings	(130		)	61			NM
Net income	$	293		$	13		NM
PER SHARE DATA
Diluted earnings (losses) per common share
Core earnings available to common shareholders and assumed conversion of preferred shares	$	1.03		$	0.90		14%
Less: Difference arising from shares used for the denominator between net loss and core earnings	—			—			NM
Add: Unlock charge, after tax	(0.14		)	(0.17		)	(18)%
Add: Restructuring and other costs, after tax	(0.02		)	(0.07		)	(71)%
Add: Income (loss) from discontinued operations, after tax	(0.01		)	0.05			(120)%
Add: Net reinsurance loss on dispositions, after tax	—			(0.84		)	(100)%
Add: Net realized capital gains (losses), after tax and DAC, excluded from core earnings	(0.26		)	0.12			NM
Less: Assumed conversion of preferred dividends	—			(0.02		)	(100)%
Net income available to common shareholders	$	0.60		$	0.01		NM

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 third 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 September 30, 2013 and December 31, 2012 is set forth below.



	As of
	Sept. 30 2013	Dec. 31 2012	Change
Book value per diluted common share, including AOCI	$38.87	$45.80	(15)%
Less: Per diluted share impact of AOCI	$(0.04)	$5.80	(101)%
Book value per diluted common share, excluding AOCI	$38.91	$40.00	(3)%

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
	Sept. 30 2013	Sept. 30 2012
P&C Commercial
Combined ratio	98.1	99.1
Catastrophe ratio	2.3	0.5
Non-catastrophe prior year development	2.4	1.1
Combined ratio before PYD & catastrophes	93.3	97.5


Consumer Markets
Combined ratio	91.9	87.9
Catastrophe ratio	1.1	(0.7)
Non-catastrophe prior year development	(0.3)	(4.7)
Combined ratio before PYD & catastrophes	91.1	93.3

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 for the quarterly periods ended September 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 September 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 September 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 September 30, 2013 and 2012, is set forth below.



	Three Months Ended
	Sept. 30 2013	Sept. 30 2012
P&C Commercial
Net income	$174	$164
Less: Income (loss) from discontinued operations	1	(2)
Less: Net realized capital gains (losses)	(1)	10
Add: Income tax expense	62	54
Less: Net servicing income	5	5
Less: Other income	(29)	(31)
Less: Net investment income	230	222
Underwriting gain	$30	$14

Consumer Markets
Net income	$68	$94
Less: Net realized capital gains	1	2
Add: Income tax expense	32	45
Less: Net servicing income	5	2
Less: Other income	(14)	(13)
Less: Net investment income	33	38
Underwriting gain	$75	$110

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 capital management plan and 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 the sales of the Individual Life, Woodbury Financial Services, Retirement Plans and U.K. variable annuity businesses; the risks, challenges and uncertainties associated with actions beyond the capital management plan and strategic realignment, which may include acquisitions, divestitures or restructurings, and the potential that any such actions may negatively impact our business,

financial condition, results of operations and liquidity; execution risk related to the continued reinvestment 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 of 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 impact of any future errors in financial reporting; 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-99.2 3 ex992ifs093013.htm EXHIBIT Ex 99.2 IFS 09.30.13

INVESTOR FINANCIAL SUPPLEMENT

September 30, 2013

THE HARTFORD FINANCIAL SERVICES GROUP, INC.




	As of October 23, 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 September 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																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
HIGHLIGHTS
Net income (loss)	$	293		$	(190	)	$	(241	)	$	(46	)	$	13		$	(101	)	$	96		$	(138	)	$	8
Core earnings	$	505		$	324		$	457		$	256		$	433		$	274		$	423		$	1,286		$	1,130
Total revenues	$	5,641		$	5,465		$	9,043		$	7,700		$	6,332		$	4,565		$	7,525		$	20,149		$	18,422
Total assets	$	283,947		$	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	$	0.65		$	(0.42	)	$	(0.58	)	$	(0.13	)	$	0.01		$	(0.26	)	$	0.20		$	(0.33	)	$	(0.05	)
Core earnings available to common shareholders	$	1.12		$	0.72		$	1.02		$	0.56		$	0.97		$	0.60		$	0.94		$	2.86		$	2.51
Diluted earnings (losses) per common share [1]
Net income (loss) available to common shareholders [2]	$	0.60		$	(0.42	)	$	(0.58	)	$	(0.13	)	$	0.01		$	(0.26	)	$	0.18		$	(0.33	)	$	(0.05	)
Core earnings available to common shareholders	$	1.03		$	0.66		$	0.93		$	0.52		$	0.90		$	0.56		$	0.86		$	2.61		$	2.32
Weighted average common shares outstanding (basic)	452.1			451.4			436.3			436.2			435.8			438.2			440.7			446.6			438.2
Dilutive effect of stock compensation	4.6			4.2			3.9			3.0			2.1			1.5			1.9			4.2			1.9
Dilutive effect of warrants	33.9			33.4			31.7			28.7			23.8			25.1			26.4			33.0			25.1
Weighted average common shares outstanding and dilutive potential common shares (diluted), before assumed conversion of preferred shares	490.6			489.0			471.9			467.9			461.7			464.8			469.0			483.8			465.2
Dilutive effect of assumed conversion of preferred shares [2] [3]	—			—			21.2			21.0			21.0			21.0			20.9			8.3			20.9
Weighted average common shares outstanding and dilutive potential common shares (diluted) and assumed conversion of preferred shares	490.6			489.0			493.1			488.9			482.7			485.8			489.9			492.1			486.1
Common shares outstanding	448.5			453.9			435.3			436.3			436.1			435.6			440.9			448.5			436.1
Book value per common share	$	42.20		$	41.89		$	46.78		$	50.17		$	51.42		$	49.14		$	46.99
Per common share impact of accumulated other comprehensive income ("AOCI")	$	(0.04	)	$	0.16		$	3.79		$	6.51		$	7.55		$	5.18		$	3.01
Book value per common share (excluding AOCI)	$	42.24		$	41.73		$	42.99		$	43.66		$	43.87		$	43.96		$	43.98
Book value per diluted share	$	38.87		$	38.59		$	42.43		$	45.80		$	47.34		$	45.59		$	43.25
Per diluted share impact of AOCI	$	(0.04	)	$	0.15		$	3.34		$	5.80		$	6.79		$	4.68		$	2.70
Book value per diluted share (excluding AOCI)	$	38.91		$	38.44		$	39.09		$	40.00		$	40.55		$	40.91		$	40.55
Common shares outstanding and dilutive potential common shares	486.9			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)	(0.9		)%	(2.3		)%	(1.8		)%	(0.2		)%	0.6		%	0.8		%	1.5		%
ROE (core earnings last 12 months to common stockholder equity excluding AOCI)	8.0		%	7.6		%	7.2		%	7.0		%	7.1		%	6.3		%	5.0		%
Debt to capitalization, including AOCI	25.0		%	25.8		%	23.2		%	24.1		%	23.7		%	24.5		%	22.6		%
Annualized investment yield, after tax	2.9		%	3.1		%	3.0		%	2.9		%	2.9		%	3.1		%	3.0		%	3.0		%	3.0		%


[1]	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.


[2]	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.


[3]	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																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
Core earnings (losses):
P&C Commercial	$	176		$	198		$	224		$	26		$	161		$	162		$	162		$	598		$	485
Consumer Markets	68			15			73			11			93			(47		)	102			156			148
P&C Other Operations	19			(73		)	21			17			21			(14		)	20			(33		)	27
Total Property & Casualty	$	263		$	140		$	318		$	54		$	275		$	101		$	284		$	721		$	660
Group Benefits	36			37			30			39			23			34			5			103			62
Mutual Funds	18			20			20			16			19			19			20			58			58
Sub-total	317			197			368			109			317			154			309			882			780
Talcott Resolution [3]	204			196			162			202			192			200			216			562			608
Corporate	(16		)	(69		)	(73		)	(55		)	(76		)	(80		)	(102		)	(158		)	(258		)
CONSOLIDATED CORE EARNINGS	$	505		$	324		$	457		$	256		$	433		$	274		$	423		$	1,286		$	1,130
Add: Unlock benefit (charge), after-tax [1] [2]	$	(67	)	$	36		$	(541	)	$	39		$	(79	)	$	(146	)	$	214		$	(572	)	$	(11	)
Add: Restructuring and other costs, after tax	(10		)	(12		)	(12		)	(58		)	(34		)	(31		)	(6		)	(34		)	(71		)
Add: Income (loss) from discontinued operations, after tax	(5		)	(126		)	(1		)	(1		)	20			7			36			(132		)	63
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		)	(388		)
Add: Net realized capital gains (losses), after tax and DAC, excluded from core earnings	(130		)	(413		)	19			(282		)	61			382			(571		)	(524		)	(128		)
Net income (loss)	$	293		$	(190	)	$	(241	)	$	(46	)	$	13		$	(101	)	$	96		$	(138	)	$	8
PER SHARE DATA
Diluted earnings (losses) per common share:
Core earnings available to common shareholders [3]	$	1.03		$	0.66		$	0.93		$	0.52		$	0.90		$	0.56		$	0.86		$	2.61		$	2.32
Net income (loss) available to common shareholders	$	0.60		$	(0.42	)	$	(0.58	)	$	(0.13	)	$	0.01		$	(0.26	)	$	0.18		$	(0.33	)	$	(0.05	)

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



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
Earned premiums	$	—		$	(1	)	$	(1	)	$	(5	)	$	(3	)	$	1		$	—		$	(2	)	$	(2	)
Fee income	12			1			2			7			14			7			(2		)	15			19
Benefits, losses and loss adjustment expenses	(54		)	(72		)	(71		)	(160		)	56			143			(208		)	(197		)	(9		)
Amortization of DAC	170			17			904			100			79			89			(124		)	1,091			44
Income tax expense (benefit)	(37		)	19			(291		)	23			(45		)	(78		)	116			(309		)	(7		)
Unlock benefit (charge), after tax [2]	$	(67	)	$	36		$	(541	)	$	39		$	(79	)	$	(146	)	$	214		$	(572	)	$	(11	)

[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.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
Earned premiums	$	3,337		$	3,293		$	3,252		$	3,388		$	3,401		$	3,400		$	3,442		$	9,882		$	10,243
Fee income	708			699			699			1,048			1,109			1,105			1,124			2,106			3,338
Net investment income (loss):
Securities available-for-sale and other	812			867			856			1,038			1,028			1,094			1,067			2,535			3,189
Equity securities, trading [1]	878			1,189			2,562			2,630			635			(1,662		)	2,761			4,629			1,734
Total net investment income (loss)	1,690			2,056			3,418			3,668			1,663			(568		)	3,828			7,164			4,923
Realized capital gains (losses):
Total other-than-temporary impairment (“OTTI”) losses [2]	(28		)	(17		)	(33		)	(188		)	(59		)	(106		)	(36		)	(78		)	(201		)
OTTI losses recognized in other comprehensive income	2			5			12			3			22			8			7			19			37
Net OTTI losses recognized in earnings	(26		)	(12		)	(21		)	(185		)	(37		)	(98		)	(29		)	(59		)	(164		)
Net realized capital gains on business dispositions [3]	—			1			1,574			—			—			—			—			1,575			—
Other net realized capital gains (losses)	(136		)	(637		)	53			(293		)	132			665			(899		)	(720		)	(102		)
Total net realized capital gains (losses)	(162		)	(648		)	1,606			(478		)	95			567			(928		)	796			(266		)
Other revenues	68			65			68			74			64			61			59			201			184
Total revenues	5,641			5,465			9,043			7,700			6,332			4,565			7,525			20,149			18,422
Benefits, losses and loss adjustment expenses	2,739			2,886			2,664			3,321			3,270			3,620			3,037			8,289			9,927
Benefits, losses and loss adjustment expenses—returns credited on international variable annuities [1]	878			1,188			2,562			2,630			635			(1,661		)	2,759			4,628			1,733
Amortization of DAC	594			391			1,336			547			566			554			321			2,321			1,441
Insurance operating costs and other expenses	978			1,101			1,006			1,244			1,214			1,253			1,294			3,085			3,761
Loss on extinguishment of debt	—			—			213			—			—			910			—			213			910
Reinsurance loss on dispositions [3]	—			—			1,574			—			533			—			—			1,574			533
Interest expense	94			100			107			109			109			115			124			301			348
Restructuring and other costs	15			19			18			89			53			48			9			52			110
Total benefits and expenses	5,298			5,685			9,480			7,940			6,380			4,839			7,544			20,463			18,763
Income (loss) from continuing operations before income taxes	343			(220		)	(437		)	(240		)	(48		)	(274		)	(19		)	(314		)	(341		)
Income tax expense (benefit)	45			(156		)	(197		)	(195		)	(41		)	(166		)	(79		)	(308		)	(286		)
Income (loss) from continuing operations, after tax	298			(64		)	(240		)	(45		)	(7		)	(108		)	60			(6		)	(55		)
Income (loss) from discontinued operations, after tax [5]	(5		)	(126		)	(1		)	(1		)	20			7			36			(132		)	63
Net income (loss)	$	293		$	(190	)	$	(241	)	$	(46	)	$	13		$	(101	)	$	96		$	(138	)	$	8
Less: Unlock benefit (charge), after tax [4]	(67		)	36			(541		)	39			(79		)	(146		)	214			(572		)	(11		)
Less: Restructuring and other costs, after tax	(10		)	(12		)	(12		)	(58		)	(34		)	(31		)	(6		)	(34		)	(71		)
Less: Income (loss) from discontinued operations, after tax [5]	(5		)	(126		)	(1		)	(1		)	20			7			36			(132		)	63
Less: Loss on extinguishment of debt, after tax	—			—			(138		)	—			—			(587		)	—			(138		)	(587		)
Less: Net reinsurance gains (losses) on dispositions, after tax [3]	—			1			(25		)	—			(388		)	—			—			(24		)	(388		)
Less: Net realized capital gains (losses), after tax and DAC, excluded from core earnings	(130		)	(413		)	19			(282		)	61			382			(571		)	(524		)	(128		)
Core earnings	$	505		$	324		$	457		$	256		$	433		$	274		423			$	1,286		$	1,130


[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]	Information related to the discontinued operations of the U.K. variable annuity business is presented in the Basis of Presentation on page i and the Talcott Resolution Financial Highlights on page 23.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATING BALANCE SHEETS

AS OF SEPTEMBER 30, 2013 and DECEMBER 31, 2012



	LIFE [1]				PROPERTY & CASUALTY [1]				CORPORATE [1]						CONSOLIDATED
	Sept. 30 2013		Dec. 31 2012		Sept. 30 2013		Dec. 31 2012		Sept. 30 2013			Dec. 31 2012			Sept. 30 2013			Dec. 31 2012
Investments
Fixed maturities, available-for-sale, at fair value	$	38,033	$	58,889	$	24,891	$	26,491	$	1,099		$	542		$	64,023		$	85,922
Fixed maturities, at fair value using the fair value option	980		1,075		14		12		—			—			994			1,087
Equity securities, trading, at fair value	22,343		28,933		—		—		—			—			22,343			28,933
Equity securities, available-for-sale, at fair value	471		512		268		263		123			115			862			890
Mortgage loans	4,243		5,661		1,332		1,050		—			—			5,575			6,711
Policy loans, at outstanding balance	1,415		1,997		—		—		—			—			1,415			1,997
Limited partnerships and other alternative investments	1,433		1,452		1,626		1,563		—			—			3,059			3,015
Other investments	522		961		108		130		17			23			647			1,114
Short-term investments	2,621		2,947		801		802		724			832			4,146			4,581
Total investments	$	72,061	$	102,427	$	29,040	$	30,311	$	1,963		$	1,512		$	103,064		$	134,250
Cash	1,243		2,231		175		190		4			—			1,422			2,421
Premiums receivable and agents’ balances	279		344		3,394		3,198		—			—			3,673			3,542
Reinsurance recoverables	20,365		1,912		2,750		2,754		—			—			23,115			4,666
DAC	1,695		5,177		554		548		—			—			2,249			5,725
Deferred income taxes	1,600		55		794		395		1,499			1,492			3,893			1,942
Goodwill	149		236		119		119		230			299			498			654
Property and equipment, net	262		348		624		620		9			9			895			977
Other assets	1,688		1,600		1,237		967		335			200			3,260			2,767
Assets held for sale [1]	2,002		—		—		—		—			—			2,002			—
Separate account assets	139,876		141,569		—		—		—			—			139,876			141,569
Total assets	$	241,220	$	255,899	$	38,687	$	39,102	$	4,040		$	3,512		$	283,947		$	298,513
Future policy benefits, unpaid losses and loss adjustment expenses	19,831		19,276		21,714		21,716		—			—			$	41,545		$	40,992
Other policyholder funds and benefits payable	40,101		41,979		—		—		—			—			40,101			41,979
Other policyholder funds and benefits payable— International variable annuities	22,332		28,922		—		—		—			—			22,332			28,922
Unearned premiums	170		174		5,276		4,972		(1		)	(1		)	5,445			5,145
Debt	—		—		—		—		6,306			7,126			6,306			7,126
Consumer notes	83		161		—		—		—			—			83			161
Other liabilities	4,201		6,800		1,604		1,675		1,803			1,697			7,608			10,172
Liabilities held for sale [1]	1,723		—		—		—		—			—			1,723			—
Separate account liabilities	139,876		141,569		—		—		—			—			139,876			141,569
Total liabilities	$	228,317	$	238,881	$	28,594	$	28,363	$	8,108		$	8,822		$	265,019		$	276,066
Common equity, excluding AOCI	12,019		14,176		9,599		9,332		(2,673		)	(4,460		)	18,945			19,048
Preferred stock [2]	—		—		—		—		—			556			—			556
AOCI, after tax	884		2,842		494		1,407		(1,395		)	(1,406		)	(17		)	2,843
Total stockholders’ equity	12,903		17,018		10,093		10,739		(4,068		)	(5,310		)	18,928			22,447
Total liabilities and equity	$	241,220	$	255,899	$	38,687	$	39,102	$	4,040		$	3,512		$	283,947		$	298,513


[1]	For a description of Life, Property & Casualty and Corporate, and information regarding assets held for sale, 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



	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012
DEBT
Short-term debt	$	200		$	520		$	520		$	320		$	320		$	—		$	—
Senior notes	5,006			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			1,100			1,739
Total debt [1][2][3]	$	6,306		$	6,625		$	6,327		$	7,126		$	7,126		$	7,125		6,220
STOCKHOLDERS’ EQUITY
Common stockholders' equity, excluding AOCI	$	18,945		$	18,939		$	18,715		$	19,048		$	19,131		$	19,149		19,390
Preferred stock	—			—			556			556			556			556			556
AOCI	(17		)	74			1,649			2,843			3,295			2,256			1,328
Total stockholders’ equity	$	18,928		$	19,013		$	20,920		$	22,447		$	22,982		$	21,961		$	21,274
CAPITALIZATION
Total capitalization, including AOCI, after tax	$	25,234		$	25,638		$	27,247		$	29,573		$	30,108		$	29,086		$	27,494
Total capitalization, excluding AOCI, after tax	$	25,251		$	25,564		$	25,598		$	26,730		$	26,813		$	26,830		$	26,166
DEBT TO CAPITALIZATION RATIOS [3]
Total debt to capitalization, including AOCI	25.0		%	25.8		%	23.2		%	24.1		%	23.7		%	24.5		%	22.6		%
Total debt to capitalization, excluding AOCI	25.0		%	25.9		%	24.7		%	26.7		%	26.6		%	26.6		%	23.8		%
Total rating agency adjusted debt to capitalization [4] [5]	28.5		%	29.3		%	26.6		%	27.4		%	26.3		%	27.3		%	26.5		%


[1]	On July 15, 2013, the Company repaid $320 of 4.625% senior notes.

[2]

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.


[3]	The Hartford excludes consumer notes from total debt for capital structure analysis. Consumer notes were $83, $110, $132, $161 and $190 as of September 30, 2013, June 30, 2013, December 31, 2012, September 30, 2012, and September 30, 2012, respectively.

[4]

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 September 30, 2013, June 30, 2013, December 31, 2012, December 31, 2012, and September 30, 2012, respectively.


[5]	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



	Sept. 30 2013			[3]	Dec. 31 2012			[3]
U.S. statutory net income
Property & Casualty [1]	$	862			$	883
Life [1] [2]	$	1,848			$	592
U.S. statutory capital and surplus - Property & Casualty	$	7,782			$	7,645
U.S. GAAP adjustments:
DAC	554				548
Benefit reserves	(49		)		(53		)
Unrealized gains on investments, after tax	423				1,314
Goodwill	119				119
Non-admitted assets	915				914
Other, net	349				252
U.S. GAAP stockholders’ equity - Property & Casualty	$	10,093			$	10,739
U.S. statutory capital and surplus - Life	$	6,885			$	6,410
U.S. GAAP adjustments:
DAC	1,695				5,177
Deferred taxes	185				(1,610		)
Benefit reserves	(223		)		(1,014		)
Unrealized gains on investments, after tax	924				4,071
Asset valuation reserve and interest maintenance reserve	873				934
Goodwill	149				236
Other, net	182				(231		)
Investment in foreign and non-insurance subsidiaries	2,233				3,045
U.S. GAAP stockholders’ equity - Life	$	12,903			$	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 the mark to market effects of hedging programs that may be accounted for as realized capital gains (losses) under U.S. GAAP.


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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)



	THREE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012
Fixed maturities net unrealized gain	$	976		$	1,141		$	2,484		$	3,402		$	3,373		$	2,507		$	1,793
Equities net unrealized gain (loss)	12			21			45			16			8			(8		)	(41		)
OTTI losses recognized in AOCI	(20		)	(23		)	(32		)	(47		)	(59		)	(94		)	(107		)
Net deferred gain on cash flow hedging instruments	167			188			320			428			543			544			463
Total net unrealized gain	$	1,135		$	1,327		$	2,817		$	3,799		$	3,865		$	2,949		$	2,108
Foreign currency translation adjustments	184			92			186			406			582			494			438
Pension and other postretirement adjustment	(1,336		)	(1,345		)	(1,354		)	(1,362		)	(1,152		)	(1,187		)	(1,218		)
Total AOCI	$	(17	)	$	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 SEPT. 30 2013
										Talcott Resolution
	Property and Casualty			Group Benefits			Mutual Funds			U.S. Annuity			International Annuity		Institutional			Other [1]			Consolidated
Balance, beginning of period	$	551		$	42		$	23		$	1,791		$	—	$	49		$	16		$	2,472
Deferred costs	311			7			9			8			—		—			—			335
Amortization — DAC	(308		)	(8		)	(11		)	(96		)	—		(1		)	—			(424		)
Amortization — DAC unlock charge, before tax	—			—			—			(154		)	—		—			(16		)	(170		)
Adjustments to unrealized gains/losses on securities available-for-sale and other	—			—			1			35			—		—			—			36
Balance, end of period	$	554		$	41		$	22		$	1,584		$	—	$	48		$	—		$	2,249



	NINE MONTHS ENDED SEPT. 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	933			22			29			19			—			—			—			1,003
Amortization — DAC	(927		)	(24		)	(30		)	(226		)	(20		)	(3		)	—			(1,230		)
Amortization — DAC unlock charge, before tax [2]	—			—			—			(188		)	(887		)	—			(16		)	(1,091		)
Amortization — DAC related to business dispositions [3]	—			—			—			—			—			—			(2,229		)	(2,229		)
Adjustments to unrealized gains/losses on securities available-for-sale and other	—						1			156			—			—			—			157
Effect of currency translation adjustment	—			—			—			—			(86		)	—			—			(86		)
Balance, end of period	$	554		$	41		$	22		$	1,584		$	—		$	48		$	—		$	2,249


[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																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
UNDERWRITING RESULTS
Written premiums	$	2,556		$	2,501		$	2,523		$	2,314		$	2,512		$	2,472		$	2,549		$	7,580		$	7,533
Change in unearned premium reserve	68			48			98			(165		)	18			18			83			214			119
Earned premiums	2,488			2,453			2,425			2,479			2,494			2,454			2,466			7,366			7,414
Losses and loss adjustment expenses
Current accident year before catastrophes	1,607			1,551			1,536			1,660			1,717			1,590			1,601			4,694			4,908
Current accident year catastrophes	66			186			32			335			10			290			71			284			371
Prior year development	17			146			14			9			(33		)	49			(29		)	177			(13		)
Total losses and loss adjustment expenses	1,690			1,883			1,582			2,004			1,694			1,929			1,643			5,155			5,266
Amortization of DAC	308			309			310			317			313			315			314			927			942
Underwriting expenses	391			389			375			381			367			388			403			1,155			1,158
Dividends to policyholders	4			4			4			6			5			5			(2		)	12			8
Underwriting gain (loss)	95			(132		)	154			(229		)	115			(183		)	108			117			40
Net investment income	296			338			312			301			295			319			317			946			931
Net realized capital gains (losses)	2			(7		)	51			40			16			(21		)	61			46			56
Other expense	(31		)	(34		)	(24		)	(33		)	(35		)	(17		)	(35		)	(89		)	(87		)
Restructuring and other costs	(1		)	—			—			—			(1		)	(5		)	—			(1		)	(6		)
Income from continuing operations before income taxes	361			165			493			79			390			93			451			1,019			934
Income tax expense (benefit)	98			27			142			(2		)	106			8			126			267			240
Income from continuing operations, after tax	263			138			351			81			284			85			325			752			694
Income (loss) from discontinued operations, after tax	1			(2		)	—			(1		)	(2		)	(1		)	(1		)	(1		)	(4		)
Net income	264			136			351			80			282			84			324			751			690
Less: Restructuring and other costs, after tax	(1		)	—			—			—			(1		)	(3		)	—			(1		)	(4		)
Less: Income (loss) from discontinued operations, after tax	1			(2		)	—			(1		)	(2		)	(1		)	(1		)	(1		)	(4		)
Less: Net realized capital gains (losses), after tax and DAC, excluded from core earnings	1			(2		)	33			27			10			(13		)	41			32			38
Core earnings	$	263		$	140		$	318		$	54		$	275		$	101		$	284		$	721		$	660

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PROPERTY & CASUALTY

UNDERWRITING RATIOS



	THREE MONTHS ENDED																				NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013		Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
UNDERWRITING GAIN (LOSS)	$	95		$	(132	)	$	154	$	(229	)	$	115		$	(183	)	$	108		$	117		$	40
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes	64.6			63.2			63.3		67.0			68.8			64.8			64.9			63.7			66.2
Current accident year catastrophes	2.7			7.6			1.3		13.5			0.4			11.8			2.9			3.9			5.0
Prior year development	0.7			6.0			0.6		0.4			(1.3		)	2.0			(1.2		)	2.4			(0.2		)
Total losses and loss adjustment expenses	67.9			76.8			65.2		80.8			67.9			78.6			66.6			70.0			71.0
Expenses	28.1			28.5			28.2		28.2			27.3			28.6			29.1			28.3			28.3
Policyholder dividends	0.2			0.2			0.2		0.2			0.2			0.2			(0.1		)	0.2			0.1
Combined ratio	96.2			105.4			93.6		109.2			95.4			107.5			95.6			98.4			99.5
Catastrophes
Current year	2.7			7.6			1.3		13.5			0.4			11.8			2.9			3.9			5.0
Prior year	(0.8		)	(1.6		)	0.1		—			(0.3		)	(2.0		)	(0.4		)	(0.8		)	(0.9		)
Catastrophe ratio	1.8			6.0			1.4		13.6			0.1			9.9			2.4			3.1			4.1
Combined ratio before catastrophes	94.3			99.4			92.2		95.7			95.3			97.6			93.2			95.3			95.4
Combined ratio before catastrophes and prior year development	92.8			91.8			91.8		95.4			96.3			93.6			93.9			92.2			94.6

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

P&C COMMERCIAL

UNDERWRITING RESULTS



	THREE MONTHS ENDED																			NINE MONTHS ENDED
	Sept. 30 2013		Jun. 30 2013			Mar. 31 2013		Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013		Sept. 30 2012
UNDERWRITING RESULTS
Written premiums	$	1,567	$	1,533		$	1,645	$	1,454		$	1,552		$	1,516		$	1,687		$	4,745	$	4,755
Change in unearned premium reserve	4		(12		)	116		(114		)	(30		)	(36		)	130			108		64
Earned premiums	1,563		1,545			1,529		1,568			1,582			1,552			1,557			4,637		4,691
Losses and loss adjustment expenses
Current accident year before catastrophes [1]	991		966			968		1,067			1,089			995			1,027			2,925		3,111
Current accident year catastrophes [2]	48		44			6		209			10			74			32			98		116
Prior year development [4]	26		37			8		18			15			19			20			71		54
Total losses and loss adjustment expenses	1,065		1,047			982		1,294			1,114			1,088			1,079			3,094		3,281
Amortization of DAC	226		226			227		234			231			231			231			679		693
Underwriting expenses	238		243			225		227			218			235			245			706		698
Dividends to policyholders [3]	4		4			4		6			5			5			(2		)	12		8
Underwriting gain (loss)	$	30	$	25		$	91	$	(193	)	$	14		$	(7	)	$	4		$	146	$	11


[1]	The three months ended September 30, 2013 and 2012 included current accident year reserve strengthening of $11 and $39, respectively, primarily related to auto liability claims in both

periods and workers' compensation business in 2012.


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


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


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



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
Auto liability	$	86		$	40		$	15		$	11		$	14		$	19		$	12		$	141		$	45
Professional liability	—			(30		)	1			—			22			9			9			(29		)	40
Package business	—			(3		)	(11		)	14			(2		)	(16		)	(16		)	(14		)	(34		)
General liability	(45		)	(10		)	(19		)	(11		)	(36		)	(24		)	(16		)	(74		)	(76		)
Fidelity and surety	—			—			(5		)	(12		)	(8		)	10			1			(5		)	3
Commercial property	(1		)	(2		)	(4		)	(3		)	1			4			(10		)	(7		)	(5		)
Uncollectible reinsurance	—			(25		)	—			—			—			—			—			(25		)	—
Workers’ compensation	(10		)	1			18			9			18			43			8			9			69
Workers’ compensation - NY 25a Fund for Reopened Cases	—			80			—			—			—			—			—			80			—
Change in workers' compensation discount, including accretion	8			7			8			7			8			8			29			23			45
Catastrophes [a.]	(12		)	(9		)	—			1			(2		)	(39		)	3			(21		)	(38		)
Other reserve re-estimates, net [b.]	—			(12		)	5			2			—			5			—			(7		)	5
Total prior year development	$	26		$	37		$	8		$	18		$	15		$	19		$	20		$	71		$	54


a.	The three months ended September 30, 2013 and June 30, 2013 included reserve releases of $12 and $15, respectively, primarily related to Storm Sandy. 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.


b.	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.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

P&C COMMERCIAL

UNDERWRITING RATIOS



	THREE MONTHS ENDED																				NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013		Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
UNDERWRITING GAIN (LOSS)	$	30		$	25		$	91	$	(193	)	$	14		$	(7	)	$	4		$	146		$	11
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes [1]	63.4			62.5			63.3		68.0			68.8			64.1			66.0			63.1			66.3
Current accident year catastrophes [2]	3.1			2.8			0.4		13.3			0.6			4.8			2.1			2.1			2.5
Prior year development [3]	1.7			2.4			0.5		1.1			0.9			1.2			1.3			1.5			1.2
Total losses and loss adjustment expenses	68.1			67.8			64.2		82.5			70.4			70.1			69.3			66.7			69.9
Expenses	29.7			30.4			29.6		29.4			28.4			30.0			30.6			29.9			29.7
Policyholder dividends	0.3			0.3			0.3		0.4			0.3			0.3			(0.1		)	0.3			0.2
Combined ratio	98.1			98.4			94.0		112.3			99.1			100.5			99.7			96.9			99.8
Catastrophes
Current year [2]	3.1			2.8			0.4		13.3			0.6			4.8			2.1			2.1			2.5
Prior year	(0.8		)	(0.6		)	—		0.1			(0.1		)	(2.5		)	0.2			(0.5		)	(0.8		)
Catastrophe ratio	2.3			2.3			0.4		13.4			0.5			2.3			2.2			1.7			1.7
Combined ratio before catastrophes	95.8			96.1			93.7		98.9			98.6			98.2			97.5			95.2			98.1
Combined ratio before catastrophes and prior year development	93.3			93.1			93.1		97.8			97.5			94.5			96.4			93.2			96.1

[1]

The three months ended September 30, 2013 included current accident year reserve strengthening of 0.7 points primarily related to auto liability claims. The three months ended December 31, 2012 included current accident year reserve strengthening of 1.8 points, primarily related to workers’ compensation business. The three months ended September 30, 2012 included current accident year reserve strengthening of 2.5 points, primarily 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																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
WRITTEN PREMIUMS
Small Commercial	$	740		$	787		$	842		$	705		$	728		$	769		$	815		$	2,369		$	2,312
Middle Market	570			518			546			545			557			512			581			1,634			1,650
Specialty	248			219			248			195			259			227			283			715			769
Other	9			9			9			9			8			8			8			27			24
Total	$	1,567		$	1,533		$	1,645		$	1,454		$	1,552		$	1,516		$	1,687		$	4,745		$	4,755
EARNED PREMIUMS
Small Commercial	$	769		$	763		$	754		$	760		$	755		$	738		$	726		$	2,286		$	2,219
Middle Market	545			540			530			559			565			562			577			1,615			1,704
Specialty	240			233			236			243			253			244			245			709			742
Other	9			9			9			6			9			8			9			27			26
Total	$	1,563		$	1,545		$	1,529		$	1,568		$	1,582		$	1,552		$	1,557		$	4,637		$	4,691
SMALL COMMERCIAL
Combined ratio	92.4			94.5			89.9			111.2			93.6			94.8			97.3			92.3			95.2
Combined ratio before catastrophes	89.9			91.8			88.2			96.5			93.0			88.7			93.1			89.9			91.6
Combined ratio before catastrophes and prior year development	87.1			87.6			89.2			92.8			92.6			87.1			91.8			88.0			90.5
MIDDLE MARKET
Combined ratio	102.7			101.7			91.6			117.1			103.5			104.1			98.8			98.7			102.1
Combined ratio before catastrophes	99.7			99.3			93.2			99.6			103.7			102.5			97.6			97.4			101.2
Combined ratio before catastrophes and prior year development	95.9			95.2			95.8			99.0			100.7			98.4			99.2			95.6			99.4
SPECIALTY
Combined ratio	111.0			113.8			112.6			104.9			117.4			107.9			108.2			112.4			111.2
Combined ratio before catastrophes	110.9			113.4			111.8			104.4			116.1			115.1			108.8			112.0			113.4
Combined ratio before catastrophes and prior year development	103.0			105.7			98.9			111.2			105.0			106.5			102.9			102.5			104.8
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
Renewal Written Price Increases
Standard Commercial Lines	8		%	8		%	8		%	8		%	8		%	7		%	7		%	8		%	7		%
Policy Count Retention
Small Commercial	81		%	80		%	82		%	83		%	84		%	82		%	84		%	81		%	83		%
Middle Market	80		%	79		%	77		%	79		%	78		%	73		%	79		%	79		%	77		%
New Business Premium $
Small Commercial	$	115		$	125		$	134		$	109		$	109		$	135		$	145		$	374		$	389
Middle Market	$	107		$	116		$	97		$	80		$	86		$	78		$	91		$	320		$	255
Policies in Force
Small Commercial	1,180,919			1,180,980			1,185,222			1,187,472			1,191,451			1,188,147			1,179,995
Middle Market	73,613			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																					NINE MONTHS ENDED
UNDERWRITING RESULTS	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
Written premiums	$	988		$	967		$	878		$	859		$	960		$	950		$	861		$	2,833		$	2,771
Change in unearned premium reserve	63			59			(18		)	(52		)	48			46			(48		)	104			46
Earned premiums	925			908			896			911			912			904			909			2,729			2,725
Losses and loss adjustment expenses
Current accident year before catastrophes	616			585			568			593			628			595			574			1,769			1,797
Current accident year catastrophes [1]	18			142			26			126			—			216			39			186			255
Prior year development [2]	(11		)	(32		)	4			(14		)	(49		)	(23		)	(55		)	(39		)	(127		)
Total losses and loss adjustment expenses	623			695			598			705			579			788			558			1,916			1,925
Amortization of DAC	82			83			83			83			82			84			83			248			249
Underwriting expenses	145			139			143			144			141			146			150			427			437
Underwriting gain (loss)	$	75		$	(9	)	$	72		$	(21	)	$	110		$	(114	)	$	118		$	138		$	114


[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																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
Auto liability	$	—		$	2		$	—		$	(2	)	$	(38	)	$	(11	)	$	(30	)	$	2		$	(79	)
Homeowners	1			(2		)	(8		)	(22		)	(4		)	(1		)	(5		)	(9		)	(10		)
Catastrophes [a.]	(8		)	(31		)	2			—			(6		)	(9		)	(14		)	(37		)	(29		)
Other reserve re-estimates, net	(4		)	(1		)	10			10			(1		)	(2		)	(6		)	5			(9		)
Total prior year development	$	(11	)	$	(32	)	$	4		$	(14	)	$	(49	)	$	(23	)	$	(55	)	$	(39	)	$	(127	)

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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSUMER MARKETS

UNDERWRITING RATIOS



	THREE MONTHS ENDED																				NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013		Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
UNDERWRITING GAIN (LOSS)	$	75		$	(9	)	$	72	$	(21	)	$	110		$	(114	)	$	118		$	138		$	114
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes	66.6			64.4			63.4		65.1			68.9			65.8			63.1			64.8			65.9
Current accident year catastrophes [1]	1.9			15.6			2.9		13.8			—			23.9			4.3			6.8			9.4
Prior year development [2]	(1.2		)	(3.5		)	0.4		(1.5		)	(5.4		)	(2.5		)	(6.1		)	(1.4		)	(4.7		)
Total losses and loss adjustment expenses	67.4			76.5			66.7		77.4			63.5			87.2			61.4			70.2			70.6
Expenses	24.5			24.4			25.2		24.9			24.5			25.4			25.6			24.7			25.2
Combined ratio	91.9			101.0			92.0		102.3			87.9			112.6			87.0			94.9			95.8
Catastrophes
Current year [1]	1.9			15.6			2.9		13.8			—			23.9			4.3			6.8			9.4
Prior year	(0.9		)	(3.4		)	0.2		—			(0.7		)	(1.0		)	(1.5		)	(1.4		)	(1.1		)
Catastrophe ratio	1.1			12.2			3.1		13.8			(0.7		)	22.9			2.8			5.5			8.3
Combined ratio before catastrophes	90.8			88.8			88.8		88.5			88.6			89.7			84.3			89.5			87.5
Combined ratio before catastrophes and prior year development	91.1			88.9			88.6		90.0			93.3			91.3			88.8			89.6			91.1
PRODUCT
Automobile
Combined ratio	96.3			94.6			96.0		109.4			93.9			98.8			88.4			95.6			93.7
Combined ratio before catastrophes and prior year development	96.8			93.8			93.3		100.5			100.1			96.0			93.8			94.6			96.6
Homeowners
Combined ratio	81.2			115.0			82.7		86.1			74.5			144.1			83.8			92.9			100.6
Combined ratio before catastrophes and prior year development	77.6			77.9			77.9		65.7			78.2			80.2			77.4			77.8			78.6


[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																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
DISTRIBUTION
WRITTEN PREMIUMS
AARP Direct	$	725		$	718		$	647		$	623		$	714		$	710		$	633		$	2,090		$	2,057
AARP Agency	62			52			45			40			37			32			27			159			96
Other Agency	187			182			173			181			196			194			186			542			576
Other	14			15			13			15			13			14			15			42			42
Total	$	988		$	967		$	878		$	859		$	960		$	950		$	861		$	2,833		$	2,771
EARNED PREMIUMS
AARP Direct	$	682		$	673		$	662		$	674		$	679		$	671		$	676		$	2,017		$	2,026
AARP Agency	47			41			35			32			27			23			19			123			69
Other Agency	182			181			184			188			194			195			201			547			590
Other	14			13			15			17			12			15			13			42			40
Total	$	925		$	908		$	896		$	911		$	912		$	904		$	909		$	2,729		$	2,725
PRODUCT LINE
WRITTEN PREMIUMS
Automobile	$	668		$	657		$	629		$	595		$	650		$	649		$	620		$	1,954		$	1,919
Homeowners	320			310			249			264			310			301			241			879			852
Total	$	988		$	967		$	878		$	859		$	960		$	950		$	861		$	2,833		$	2,771
EARNED PREMIUMS
Automobile	$	637		$	626		$	619		$	632		$	632		$	630		$	632		$	1,882		$	1,894
Homeowners	288			282			277			279			280			274			277			847			831
Total	$	925		$	908		$	896		$	911		$	912		$	904		$	909		$	2,729		$	2,725
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
Renewal Written Price Increases
Automobile	5		%	5		%	5		%	5		%	4		%	4		%	4		%	5		%	4		%
Homeowners	8		%	7		%	6		%	6		%	6		%	6		%	6		%	7		%	6		%
Policy Count Retention
Automobile	86		%	86		%	86		%	86		%	85		%	84		%	84		%	86		%	85		%
Homeowners	86		%	87		%	87		%	88		%	87		%	86		%	85		%	87		%	86		%
Premium Retention
Automobile	88		%	88		%	88		%	87		%	87		%	86		%	84		%	88		%	86		%
Homeowners	92		%	92		%	92		%	91		%	91		%	90		%	89		%	92		%	90		%
New Business Premium $
Automobile	$	100		$	93		$	87		$	77		$	84		$	85		$	86		$	280		$	255
Homeowners	$	35		$	34		$	30		$	30		$	32		$	30		$	25		$	99		$	87
Policies in Force
Automobile	2,021,480			2,019,678			2,018,628			2,015,323			2,029,078			2,044,874			2,065,317
Homeowners	1,320,833			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																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
UNDERWRITING RESULTS
Written premiums	$	1		$	1		$	—		$	1		$	—		$	6		$	1		$	2		$	7
Change in unearned premium reserve	1			1			—			1			—			8			1			2			9
Earned premiums	—			—			—			—			—			(2		)	—			—			(2		)
Losses and loss adjustment expenses
Prior year development [1]	2			141			2			5			1			53			6			145			60
Total losses and loss adjustment expenses	2			141			2			5			1			53			6			145			60
Underwriting expenses	8			7			7			10			8			7			8			22			23
Underwriting loss	$	(10	)	$	(148	)	$	(9	)	$	(15	)	$	(9	)	$	(62	)	$	(14	)	$	(167	)	$	(85	)


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



	THREE MONTHS ENDED														NINE MONTHS ENDED
	Sept. 30 2013		Jun. 30 2013		Mar. 31 2013		Dec. 31 2012		Sept. 30 2012		Jun. 30 2012		Mar. 31 2012		Sept. 30 2013		Sept. 30 2012
Asbestos	$	—	$	130	$	—	$	—	$	—	$	48	$	—	$	130	$	48
Environmental	1		10		1		2		—		3		5		12		8
Other reserve re-estimates, net	1		1		1		3		1		2		1		3		4
Total prior year development	$	2	$	141	$	2	$	5	$	1	$	53	$	6	$	145	$	60

GROUP BENEFITS

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

GROUP BENEFITS

INCOME STATEMENTS



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
Earned premiums	$	817		$	823		$	812		$	915		$	926		$	950		$	957		$	2,452		$	2,833
Fee income	14			15			14			16			15			16			15			43			46
Net investment income	96			100			97			101			98			107			99			293			304
Net realized capital gains (losses)	(8		)	37			18			9			11			—			20			47			31
Total revenues	919			975			941			1,041			1,050			1,073			1,091			2,835			3,214
Benefits, losses and loss adjustment expenses	637			635			639			717			746			759			807			1,911			2,312
Amortization of DAC	8			8			8			8			9			8			8			24			25
Insurance operating costs and other expenses	237			248			240			256			257			261			258			725			776
Restructuring and other costs	—			—			—			—			1			—			—			—			1
Total benefits and expenses	882			891			887			981			1,013			1,028			1,073			2,660			3,114
Income from continuing operations before income taxes	37			84			54			60			37			45			18			175			100
Income tax expense	6			23			12			14			7			10			—			41			17
Net income	31			61			42			46			30			35			18			134			83
Less: Net realized capital gains (losses), after tax, excluded from core earnings	(5		)	24			12			7			7			1			13			31			21
Core earnings	$	36		$	37		$	30		$	39		$	23		$	34		$	5		$	103		$	62
After-tax margin (excluding buyouts)
Net income	3.4		%	6.3		%	4.5		%	4.4		%	2.9		%	3.3		%	1.7		%	4.7		%	2.6		%
Core earnings	3.9		%	3.9		%	3.2		%	3.8		%	2.2		%	3.2		%	0.5		%	3.7		%	2.0		%

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

GROUP BENEFITS

SUPPLEMENTAL DATA



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
PREMIUMS
Fully insured ongoing premiums
Group disability	$	343		$	355		$	345		$	411		$	411		$	423		$	428		$	1,043		$	1,262
Group life	435			427			426			456			468			478			476			1,288			1,422
Other	39			40			41			48			47			49			50			120			146
Total fully insured ongoing premiums	$	817		$	822		$	812		$	915		$	926		$	950		$	954		$	2,451		$	2,830
Total buyouts [1]	—			1			—			—			—			—			3			1			3
Total premiums	817			823			812			915			926			950			957			2,452			2,833
Group disability premium equivalents [2]	104			100			106			111			114			111			110			310			335
Total premiums and premium equivalents	$	921		$	923		$	918		$	1,026		$	1,040		$	1,061		$	1,067		$	2,762		$	3,168
SALES (GROSS ANNUALIZED NEW PREMIUMS)
Fully insured ongoing sales
Group disability	$	32		$	46		$	76		$	25		$	25		$	27		$	86		$	154		$	138
Group life	28			55			88			28			24			37			135			171			196
Other	3			2			5			3			6			2			7			10			15
Total fully insured ongoing sales	63			103			169			56			55			66			228			335			349
Total buyouts [1]	—			1			—			—			—			1			2			1			3
Total sales	63			104			169			56			55			67			230			336			352
Group disability premium equivalents [2]	5			18			15			8			7			3			31			38			41
Total sales and premium equivalents	$	68		$	122		$	184		$	64		$	62		$	70		$	261		$	374		$	393
RATIOS [3]
Loss ratio
Group disability loss ratio	87.9		%	82.7		%	89.9		%	85.8		%	91.5		%	93.1		%	98.2		%	86.8		%	94.3		%
Group life loss ratio	68.2		%	70.8		%	68.1		%	70.0		%	69.4		%	66.5		%	70.3		%	69.0		%	68.7		%
Total loss ratio	76.7		%	75.7		%	77.4		%	77.0		%	79.3		%	78.6		%	83.0		%	76.6		%	80.3		%
Expense ratio	29.5		%	30.6		%	30.0		%	28.4		%	28.4		%	27.8		%	27.5		%	30.0		%	27.9		%
GAAP RESERVES, NET OF REINSURANCE RECOVERABLES [4]
Group disability	$	5,169		$	5,207		$	5,267		$	5,321		$	5,346		$	5,348		$	5,342
Group life	1,099			1,110			1,116			1,164			1,151			1,159			1,174
Other	70			68			68			75			71			73			75
Total GAAP reserves	$	6,338		$	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 $269, $260, $250, $252, $254, $244 and $239 as of September 30, 2013, 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																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
Fee income	$	171		$	170		$	164		$	152		$	148		$	148		$	151		$	505		$	447
Net investment loss	—			—			—			(1		)	(1		)	—			(1		)	—			(2		)
Net realized capital gains (losses)	—			—			—			—			1			(2		)	1			—			—
Total revenues	171			170			164			151			148			146			151			505			445
Amortization of DAC	11			10			9			9			8			9			9			30			26
Insurance operating costs and other expenses [1]	132			128			126			118			112			108			111			386			331
Restructuring and other costs	(1		)	1			1			1			1			1			—			1			2
Total benefits and expenses	142			139			136			128			121			118			120			417			359
Income before income taxes	29			31			28			23			27			28			31			88			86
Income tax expense	10			11			10			8			9			10			11			31			30
Net income	19			20			18			15			18			18			20			57			56
Less: Restructuring and other costs, after tax	1			(1		)	(1		)	(1		)	(1		)	(1		)	—			(1		)	(2		)
Less: Net realized capital gains (losses), after tax, excluded from core earnings	—			1			(1		)	—			—			—			—			—			—
Core earnings	$	18		$	20		$	20		$	16		$	19		$	19		$	20		$	58		$	58
Return on assets (bps, after tax)
Net income	8.4			8.8			8.0			6.8			8.3			8.1			9.0			8.4			8.6
Core earnings	8.0			8.8			8.9			7.3			8.7			8.5			9.0			8.6			8.9


[1]	Includes compensation to servicing intermediaries of approximately $5 for the first, second and third 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																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
RETAIL MUTUAL FUNDS [1]
Beginning balance	$	47,617		$	48,186		$	45,013		$	44,267		$	42,665		$	45,315		$	41,785		$	45,013		$	41,785
Sales	2,864			2,789			3,162			2,433			2,136			2,031			2,210			8,815			6,377
Redemptions	(2,901		)	(4,075		)	(3,176		)	(2,726		)	(2,436		)	(2,856		)	(3,069		)	(10,152		)	(8,361		)
Net flows	(37		)	(1,286		)	(14		)	(293		)	(300		)	(825		)	(859		)	(1,337		)	(1,984		)
Change in market value and other [2]	2,358			717			3,187			1,039			1,902			(1,825		)	4,389			6,262			4,466
Ending balance	$	49,938		$	47,617		$	48,186		$	45,013		$	44,267		$	42,665		$	45,315		$	49,938		$	44,267
DEFINED CONTRIBUTION INVESTMENT ONLY MUTUAL FUNDS [3]
Beginning balance	$	15,991		$	17,622		$	16,598		$	17,015		$	16,678		$	17,945		$	16,140		$	16,598		$	16,140
Sales	923			937			942			720			662			793			856			2,802			2,311
Redemptions	(1,531		)	(2,590		)	(1,426		)	(1,484		)	(1,144		)	(1,386		)	(1,157		)	(5,547		)	(3,687		)
Net flows	(608		)	(1,653		)	(484		)	(764		)	(482		)	(593		)	(301		)	(2,745		)	(1,376		)
Change in market value and other	1,438			22			1,508			347			819			(674		)	2,106			2,968			2,251
Ending balance	$	16,821		$	15,991		$	17,622		$	16,598		$	17,015		$	16,678		$	17,945		$	16,821		$	17,015
TOTAL MUTUAL FUNDS
Beginning balance	$	63,608		$	65,808		$	61,611		$	61,282		$	59,343		$	63,260		$	57,925		$	61,611		$	57,925
Sales	3,787			3,726			4,104			3,153			2,798			2,824			3,066			11,617			8,688
Redemptions [4]	(4,432		)	(6,665		)	(4,602		)	(4,210		)	(3,580		)	(4,242		)	(4,226		)	(15,699		)	(12,048		)
Net flows	(645		)	(2,939		)	(498		)	(1,057		)	(782		)	(1,418		)	(1,160		)	(4,082		)	(3,360		)
Change in market value and other	3,796			739			4,695			1,386			2,721			(2,499		)	6,495			9,230			6,717
Ending balance	$	66,759		$	63,608		$	65,808		$	61,611		$	61,282		$	59,343		$	63,260		$	66,759		$	61,282
AVERAGE MUTUAL FUNDS ASSETS UNDER MANAGEMENT	$	65,183		$	64,708		$	63,710		$	61,447		$	60,313		$	61,302		$	60,593		$	64,185		$	59,603
ANNUITY MUTUAL FUND ASSETS [5]	$	25,638		$	25,901		$	26,628		$	26,036		$	26,839		$	26,888		$	29,145		$	25,638		$	26,839
TOTAL ASSETS UNDER MANAGEMENT	$	92,397		$	89,509		$	92,436		$	87,647		$	88,121		$	86,231		$	92,405		$	92,397		$	88,121
AVERAGE ASSETS UNDER MANAGEMENT	$	90,953		$	90,973		$	90,042		$	87,884		$	87,176		$	89,318		$	88,972		$	90,022		$	86,830

[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 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																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
EQUITY
Beginning balance	$	36,186		$	38,453		$	35,843		$	36,341		$	35,694		$	39,501		$	35,489		$	35,843		$	35,489
Sales	1,591			1,446			1,559			1,117			1,047			1,275			1,416			4,596			3,738
Redemptions	(2,054		)	(4,821		)	(2,951		)	(2,562		)	(2,239		)	(2,750		)	(2,725		)	(9,826		)	(7,714		)
Net flows	(463		)	(3,375		)	(1,392		)	(1,445		)	(1,192		)	(1,475		)	(1,309		)	(5,230		)	(3,976		)
Change in market value and other	3,334			1,108			4,002			947			1,839			(2,332		)	5,321			8,444			4,828
Ending balance	$	39,057		$	36,186		$	38,453		$	35,843		$	36,341		$	35,694		$	39,501		$	39,057		$	36,341
FIXED INCOME
Beginning balance	$	14,944		$	15,213		$	14,524		$	13,941		$	13,281		$	13,321		$	13,064		$	14,524		$	13,064
Sales	1,507			1,432			1,755			1,366			1,109			884			954			4,694			2,947
Redemptions	(1,802		)	(1,323		)	(1,133		)	(1,042		)	(828		)	(1,056		)	(1,027		)	(4,258		)	(2,911		)
Net flows	(295		)	109			622			324			281			(172		)	(73		)	436			36
Change in market value and other	(54		)	(378		)	67			259			379			132			330			(365		)	841
Ending balance	$	14,595		$	14,944		$	15,213		$	14,524		$	13,941		$	13,281		$	13,321		$	14,595		$	13,941
MULTI-STRATEGY INVESTMENTS [1]
Beginning balance	$	12,478		$	12,142		$	11,244		$	11,000		$	10,368		$	10,438		$	9,372		$	11,244		$	9,372
Sales	689			848			790			670			642			665			696			2,327			2,003
Redemptions	(576		)	(521		)	(518		)	(606		)	(513		)	(436		)	(474		)	(1,615		)	(1,423		)
Net flows	113			327			272			64			129			229			222			712			580
Change in market value and other	516			9			626			180			503			(299		)	844			1,151			1,048
Ending balance	$	13,107		$	12,478		$	12,142		$	11,244		$	11,000		$	10,368		$	10,438		$	13,107		$	11,000
TOTAL MUTUAL FUNDS [2]	$	66,759		$	63,608		$	65,808		$	61,611		$	61,282		$	59,343		$	63,260		$	66,759		$	61,282


[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																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
NET INCOME (LOSS)
U.S. Annuity	$	69		$	23		$	63		$	35		$	188		$	(19	)	198			$	155		$	367
International Annuity [1]	(80		)	(407		)	(490		)	(176		)	(79		)	402			(465		)	(977		)	(142		)
Institutional	—			3			25			3			27			13			52			28			92
Other [2] [3]	18			49			108			(10		)	(257		)	44			45			175			(168		)
Talcott Resolution net income (loss)	7			(332		)	(294		)	(148		)	(121		)	440			(170		)	(619		)	149
Less: Unlock benefit (charge), after tax	(67		)	36			(541		)	39			(79		)	(146		)	214			(572		)	(11		)
Less: Restructuring and other costs, after tax	(1		)	1			(1		)	(14		)	(21		)	(9		)	—			(1		)	(30		)
Less: Income (loss) from discontinued operations, after tax [1]	(6		)	(124		)	(1		)	—			22			8			37			(131		)	67
Less: Net reinsurance gain (loss) on dispositions, after tax	—			1			44			—			(270		)	—			—			45			(270		)
Less: Net realized gains (losses) and other, after tax and DAC, excluded from core earnings	(123		)	(442		)	43			(375		)	35			387			(637		)	(522		)	(215		)
Talcott Resolution core earnings [4]	$	204		$	196		$	162		$	202		$	192		$	200		$	216		$	562		$	608
CORE EARNINGS (LOSSES)
U.S. Annuity	$	89		$	79		$	73		$	96		$	74		$	80		$	96		$	241		$	250
International Annuity	91			96			69			63			73			65			71			256			209
Institutional	3			8			9			(6		)	(7		)	5			4			20			2
Other [2]	21			13			11			49			52			50			45			45			147
Talcott Resolution core earnings [4]	$	204		$	196		$	162		$	202		$	192		$	200		$	216		$	562		$	608
UNLOCK IMPACT on NET INCOME (LOSS)
U.S. Annuity	$	(99	)	$	(9	)	$	3		$	(90	)	$	(74	)	$	(43	)	$	90		$	(105	)	$	(27	)
International Annuity	37			45			(544		)	138			3			(100		)	125			(462		)	28
Institutional	—			—			—			—			6			—			—			—			6
Other [2]	(5		)	—			—			(9		)	(14		)	(3		)	(1		)	(5		)	(18		)
Talcott Resolution unlock impact on net income (loss)	$	(67	)	$	36		$	(541	)	$	39		$	(79	)	$	(146	)	$	214		$	(572	)	$	(11	)


[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]	For further information regarding discontinued operations of the U.K. variable annuity business, refer to Basis of Presentation on page i.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

TALCOTT RESOLUTION

SUPPLEMENTAL DATA



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013		Sept. 30 2012
CORE EARNINGS - RETURN ON ASSETS (bps, after tax)
U.S. Annuity	49.0			42.3			38.4			50.1			38.1			39.6			46.8			43.5		42.2
Japan Annuity	135.4			133.1			88.4			77.4			90.5			76.1			83.9			117.7		82.7
FULL SURRENDER RATES
U.S. variable annuity	20.3		%	17.5		%	14.5		%	10.4		%	10.4		%	13.0		%	9.6		%	17.5	%	11.2	%
Japan variable annuity	30.8		%	34.8		%	9.6		%	3.7		%	3.0		%	3.9		%	2.8		%	24.6	%	3.2	%
CONTRACT COUNTS (in thousands)
U.S. variable annuity	802			839			873			904			929			956			989
U.S. fixed annuity and other	176			180			184			186			189			193			199
Japan variable annuity	341			368			400			411			417			421			427
Japan fixed annuity and other	24			25			26			27			27			28			30
ACCOUNT VALUE (end of period) [1]
U.S. variable annuity	$	61,512		$	62,579		$	65,500		$	64,824		$	66,707		$	66,538		$	72,235
U.S. fixed annuity and other	10,455			10,670			10,797			10,848			11,006			11,228			11,507
Total U.S. Annuity account value	$	71,967		$	73,249		$	76,297		$	75,672		$	77,713		$	77,766		$	83,742
Japan variable annuity	22,846			23,921			26,934			27,716			28,725			27,977			29,396
Japan fixed annuity and other	3,384			3,368			3,553			3,908			4,535			4,461			4,469
Total Japan Annuity account value	$	26,230		$	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:



	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012
Other account value [a.]	107,935			102,719			104,534			104,259			107,492			$	106,421		$	108,909
Institutional	17,118			17,252			17,586			17,744			18,204			$	18,233		$	18,622
Institutional account value inter-segment funding	$	(1,201	)	$	(1,186	)	$	(1,171	)	$	(1,156	)	$	(1,346	)	$	(1,329	)	$	(1,312	)
Total account value	$	222,049		$	219,323		$	227,733		$	228,143		$	235,323		$	233,529		$	243,826

[a.] 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																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
VARIABLE ANNUITIES
Beginning balance	$	62,579		$	65,500		$	64,824		$	66,707		$	66,538		$	72,235		$	68,760		$	64,824		$	68,760
Deposits	77			180			226			209			130			169			307			483			606
Partial withdrawals	(647		)	(630		)	(710		)	(815		)	(711		)	(780		)	(815		)	(1,987		)	(2,306		)
Full surrenders	(3,153		)	(2,805		)	(2,356		)	(1,717		)	(1,737		)	(2,251		)	(1,687		)	(8,314		)	(5,675		)
Death benefits/annuitizations/other [1]	(445		)	(472		)	(468		)	(459		)	(388		)	(397		)	(449		)	(1,385		)	(1,234		)
Transfers	(2		)	(1		)	1			(1		)	1			—			3			(2		)	4
Net flows	(4,170		)	(3,728		)	(3,307		)	(2,783		)	(2,705		)	(3,259		)	(2,641		)	(11,205		)	(8,605		)
Change in market value/change in reserve/interest credited and other	3,103			807			3,983			900			2,874			(2,438		)	6,116			7,893			6,552
Ending balance	$	61,512		$	62,579		$	65,500		$	64,824		$	66,707		$	66,538		$	72,235		$	61,512		$	66,707
FIXED MARKET VALUE ADJUSTED (“MVA”) AND OTHER
Beginning balance	$	10,670		$	10,797		$	10,848		$	11,006		$	11,228		$	11,507		$	11,631		$	10,848		$	11,631
Deposits	—			2			6			7			9			16			46			8			71
Surrenders	(264		)	(161		)	(103		)	(167		)	(251		)	(298		)	(204		)	(528		)	(753		)
Death benefits/annuitizations/other [1]	(64		)	(72		)	(74		)	(109		)	(105		)	(106		)	(102		)	(210		)	(313		)
Transfers	(2		)	(3		)	—			—			2			(4		)	1			(5		)	(1		)
Net flows	(330		)	(234		)	(171		)	(269		)	(345		)	(392		)	(259		)	(735		)	(996		)
Change in market value/change in reserve/interest credited and other	115			107			120			111			123			113			135			342			371
Ending balance	$	10,455		$	10,670		$	10,797		$	10,848		$	11,006		$	11,228		$	11,507		$	10,455		$	11,006
TOTAL U.S. ANNUITY
Beginning balance	$	73,249		$	76,297		$	75,672		$	77,713		$	77,766		$	83,742		$	80,391		$	75,672		$	80,391
Deposits	77			182			232			216			139			185			353			491			677
Surrenders	(4,064		)	(3,596		)	(3,169		)	(2,699		)	(2,699		)	(3,329		)	(2,706		)	(10,829		)	(8,734		)
Death benefits/annuitizations/other [1]	(509		)	(544		)	(542		)	(568		)	(493		)	(503		)	(551		)	(1,595		)	(1,547		)
Transfers	(4		)	(4		)	1			(1		)	3			(4		)	4			(7		)	3
Net flows	(4,500		)	(3,962		)	(3,478		)	(3,052		)	(3,050		)	(3,651		)	(2,900		)	(11,940		)	(9,601		)
Change in market value/change in reserve/interest credited and other	3,218			914			4,103			1,011			2,997			(2,325		)	6,251			8,235			6,923
Ending balance	$	71,967		$	73,249		$	76,297		$	75,672		$	77,713		$	77,766		$	83,742		$	71,967		$	77,713


[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																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
VARIABLE ANNUITIES
Beginning balance	$	23,921		$	26,934		$	27,716		$	28,725		$	27,977		$	29,396		$	29,233		$	27,716		$	29,233
Surrenders	(1,842		)	(2,257		)	(694		)	(302		)	(255		)	(323		)	(250		)	(4,793		)	(828		)
Death benefits/annuitizations/other [1]	(258		)	(206		)	(220		)	(203		)	(179		)	(176		)	(173		)	(684		)	(528		)
Net flows	(2,100		)	(2,463		)	(914		)	(505		)	(434		)	(499		)	(423		)	(5,477		)	(1,356		)
Change in market value/change in reserve/interest credited	736			916			2,402			2,464			467			(1,829		)	2,586			4,054			1,224
Effect of currency translation	289			(1,466		)	(2,270		)	(2,968		)	715			909			(2,000		)	(3,447		)	(376		)
Ending balance [2]	$	22,846		$	23,921		$	26,934		$	27,716		$	28,725		$	27,977		$	29,396		$	22,846		$	28,725
FIXED MARKET VALUE ADJUSTED ("MVA") AND OTHER
Beginning balance	$	3,368		$	3,553		$	3,908		$	4,535		$	4,461		$	4,469		$	4,786		$	3,908		$	4,786
Surrenders	(28		)	(26		)	(41		)	(47		)	(58		)	(152		)	(47		)	(95		)	(257		)
Death benefits/annuitizations/other [1]	(15		)	(18		)	(13		)	(180		)	(3		)	(18		)	1			(46		)	(20		)
Net flows	(43		)	(44		)	(54		)	(227		)	(61		)	(170		)	(46		)	(141		)	(277		)
Change in market value/change in reserve/interest credited	18			28			37			42			22			23			40			83			85
Effect of currency translation	41			(169		)	(338		)	(442		)	113			139			(311		)	(466		)	(59		)
Ending balance	$	3,384		$	3,368		$	3,553		$	3,908		$	4,535		$	4,461		$	4,469		$	3,384		$	4,535
TOTAL JAPAN ANNUITY
Beginning balance	$	27,289		$	30,487		$	31,624		$	33,260		$	32,438		$	33,865		$	34,019		$	31,624		$	34,019
Surrenders	(1,870		)	(2,283		)	(735		)	(349		)	(313		)	(475		)	(297		)	(4,888		)	(1,085		)
Death benefits/annuitizations/other [1]	(273		)	(224		)	(233		)	(383		)	(182		)	(194		)	(172		)	(730		)	(548		)
Net flows	(2,143		)	(2,507		)	(968		)	(732		)	(495		)	(669		)	(469		)	(5,618		)	(1,633		)
Change in market value/change in reserve/interest credited	754			944			2,439			2,506			489			(1,806		)	2,626			4,137			1,309
Effect of currency translation	330			(1,635		)	(2,608		)	(3,410		)	828			1,048			(2,311		)	(3,913		)	(435		)
Ending balance	$	26,230		$	27,289		$	30,487		$	31,624		$	33,260		$	32,438		$	33,865		$	26,230		$	33,260


[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:
	Sept. 30 2013			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	1,682			1,606			1,569			1,426			1,441			1,362			1,408

Total account value with guaranteed minimum death benefits (“GMDB”)	$	61,512		$	62,579		$	65,500		$	64,824		$	66,707		$	66,538		$	72,235
GMDB gross net amount of risk ("NAR")	4,657			5,195			5,349			6,610			7,187			8,998			7,698
% of GMDB NAR reinsured	75		%	72		%	72		%	67		%	66		%	62		%	65		%
GMDB retained NAR [2]	1,183			1,457			1,498			2,168			2,458			3,461			2,724
GMDB net GAAP liability	301			298			293			310			308			337			322

Total account value with guaranteed minimum withdrawal benefits (“GMWB”)	$	30,907		$	32,035		$	34,106		$	34,218		$	34,836		$	35,127		$	38,312
GMWB gross NAR	228			344			361			650			761			1,198			847
% of GMWB NAR reinsured	18		%	18		%	19		%	17		%	16		%	16		%	16		%
GMWB retained NAR [2]	187			282			293			540			636			1,009			711
GMWB net GAAP liability	158			513			651			1,022			1,179			1,790			1,355

Japan Variable Annuity Business
Yen / $	98.1			99.3			94.0			86.5			77.8			79.8			82.3
Yen / Euro	132.8			129.1			120.7			114.5			100.2			101.0			110.6

Total account value with GMDB	$	22,846		$	23,921		$	26,934		$	27,716		$	28,725		$	27,977		$	29,396
GMDB gross NAR	1,624			2,218			3,091			5,736			9,107			9,477			7,580
% of GMDB NAR reinsured	23		%	21		%	20		%	16		%	13		%	13		%	15		%
GMDB retained NAR	1,250			1,760			2,467			4,831			7,882			8,236			6,469

Total account value with guaranteed minimum income benefits (“GMIB”) [1]	$	21,102		$	22,174		$	25,129		$	25,960		$	26,917		$	26,119		$	27,350
GMIB retained NAR [2]	509			851			1,280			3,316			6,092			6,470			4,785
GMDB/GMIB net GAAP liability	336			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. 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																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
Fee income	$	2		$	2		$	3		$	25		$	45		$	45		$	52		$	7		$	142
Net investment income	6			—			13			26			8			3			(6		)	19			5
Other revenues	—			—			—			1			—			—			—			—			—
Net realized capital gains (losses)	(5		)	10			(96		)	84			9			17			15			(91		)	41
Total revenues	3			12			(80		)	136			62			65			61			(65		)	188
Benefits, losses and loss adjustment expenses (income)	—			—			—			—			1			(1		)	—			—			—
Insurance operating costs and other expenses [1]	(60		)	14			26			48			57			63			76			(20		)	196
Loss on extinguishment of debt [2]	—			—			213			—			—			910			—			213			910
Reinsurance loss on dispositions [3]	—			—			69			—			118			—			—			69			118
Interest expense	94			100			107			109			109			115			124			301			348
Restructuring and other costs	14			19			16			67			17			28			9			49			54
Total benefits and expenses	48			133			431			224			302			1,115			209			612			1,626
Loss before income taxes	(45		)	(121		)	(511		)	(88		)	(240		)	(1,050		)	(148		)	(677		)	(1,438		)
Income tax benefit	(17		)	(46		)	(153		)	(49		)	(44		)	(372		)	(52		)	(216		)	(468		)
Net loss	(28		)	(75		)	(358		)	(39		)	(196		)	(678		)	(96		)	(461		)	(970		)
Less: Restructuring and other costs, after tax	(9		)	(12		)	(10		)	(43		)	(11		)	(18		)	(6		)	(31		)	(35		)
Less: Loss on extinguishment of debt, after tax [2]	—			—			(138		)	—			—			(587		)	—			(138		)	(587		)
Less: Net reinsurance loss on dispositions, after tax [3]	—			—			(69		)	—			(118		)	—			—			(69		)	(118		)
Less: Net realized capital gains (losses), after tax and DAC, excluded from core losses	(3		)	6			(68		)	59			9			7			12			(65		)	28
Core losses	$	(16	)	$	(69	)	$	(73	)	$	(55	)	$	(76	)	$	(80	)	$	(102	)	$	(158	)	$	(258	)


[1]	In the third quarter of 2013 insurance operating costs and other expenses include a benefit of $57, before tax, for an insurance recovery from the Company's insurers for past legal expenses associated with closed litigation and a benefit of $19, before tax, from the resolution of items under the Company's spin-off agreement with its former parent company.

[2]

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.


[3]	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														NINE MONTHS ENDED
	Sept. 30 2013		Jun. 30 2013		Mar. 31 2013		Dec. 31 2012		Sept. 30 2012		Jun. 30 2012		Mar. 31 2012		Sept. 30 2013		Sept. 30 2012
Net Investment Income (Loss)
Fixed maturities [1]
Taxable	540		548		554		708		710		725		735		1,642		2,170
Tax-exempt	117		116		116		117		118		119		120		349		357
Total fixed maturities	657		664		670		825		828		844		855		1,991		2,527
Equity securities, trading	878		1,189		2,562		2,630		635		(1,662	)	2,761		4,629		1,734
Equity securities, available-for-sale	7		8		6		14		5		8		10		21		23
Mortgage loans	65		62		65		84		88		86		79		192		253
Policy loans	20		22		20		29		30		30		30		62		90
Limited partnerships and other alternative investments [2]	46		95		66		44		28		72		52		207		152
Other [3]	47		45		58		71		75		82		69		150		226
Subtotal	1,720		2,085		3,447		3,697		1,689		(540	)	3,856		7,252		5,005
Investment expense	(30	)	(29	)	(29	)	(29	)	(26	)	(28	)	(28	)	(88	)	(82	)
Total net investment income	1,690		2,056		3,418		3,668		1,663		(568	)	3,828		7,164		4,923
Less: Equity securities, trading	878		1,189		2,562		2,630		635		(1,662	)	2,761		4,629		1,734
Total net investment income excluding trading securities	812		867		856		1,038		1,028		1,094		1,067		2,535		3,189
Annualized investment yield, before-tax [4] [5]	4.2	%	4.4	%	4.3	%	4.3	%	4.2	%	4.5	%	4.4	%	4.3	%	4.4	%
Annualized investment yield, after tax [4]	2.9	%	3.1	%	3.0	%	2.9	%	2.9	%	3.1	%	3.0	%	3.0	%	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 are used to 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 nine months ended September 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 4.2% was higher than the third quarter 2012 annualized yield excluding the impact of the sale of the Retirement Plans and Individual Life businesses of 4.0%.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTMENT EARNINGS BEFORE-TAX

PROPERTY & CASUALTY



	THREE MONTHS ENDED														NINE MONTHS ENDED
	Sept. 30 2013		Jun. 30 2013		Mar. 31 2013		Dec. 31 2012		Sept. 30 2012		Jun. 30 2012		Mar. 31 2012		Sept. 30 2013		Sept. 30 2012
Net Investment Income (Loss)
Fixed maturities [1]
Taxable	168		175		172		175		171		175		183		515		529
Tax-exempt	92		91		92		92		93		94		94		275		281
Total fixed maturities	260		266		264		267		264		269		277		790		810
Equity securities, available-for-sale	3		4		2		4		3		4		4		9		11
Mortgage loans	13		11		12		12		12		12		10		36		34
Limited partnerships and other alternative investments [2]	20		50		39		19		15		31		26		109		72
Other [3]	9		16		3		9		8		10		7		28		25
Subtotal	305		347		320		311		302		326		324		972		952
Investment expense	(9	)	(9	)	(8	)	(10	)	(7	)	(7	)	(7	)	(26	)	(21	)
Total net investment income	296		338		312		301		295		319		317		946		931
Annualized investment yield, before-tax [4]	4.2	%	4.8	%	4.5	%	4.3	%	4.2	%	4.6	%	4.5	%	4.5	%	4.4	%
Annualized investment yield, after tax [4]	3.1	%	3.6	%	3.5	%	3.1	%	3.2	%	3.4	%	3.4	%	3.4	%	3.3	%


[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 divided by the monthly average invested assets at cost, amortized cost, or adjusted carrying value, as applicable, repurchase agreement

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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NET INVESTMENT INCOME BY SEGMENT

CONSOLIDATED



	THREE MONTHS ENDED																		NINE MONTHS ENDED
	Sept. 30 2013		Jun. 30 2013		Mar. 31 2013		Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013		Sept. 30 2012
Net Investment Income (Loss)
Commercial Markets	$	230	$	262	$	240	$	228		$	222		$	239		$	235		$	732	$	696
Consumer Markets	33		39		37		37			38			41			43			109		122
P&C Other Operations	33		37		35		36			35			39			39			105		113
Total Property & Casualty	296		338		312		301			295			319			317			946		931
Group Benefits	96		100		97		101			98			107			99			293		304
Mutual Funds	—		—		—		(1		)	(1		)	—			(1		)	—		(2		)
Talcott Resolution [1]	1,292		1,618		2,996		3,241			1,263			(997		)	3,419			5,906		3,685
Corporate	6		—		13		26			8			3			(6		)	19		5
Total net investment income	1,690		2,056		3,418		3,668			1,663			(568		)	3,828			7,164		4,923
Less: Equity securities, trading	878		1,189		2,562		2,630			635			(1,662		)	2,761			4,629		1,734
Total net investment income excluding trading securities	$	812	$	867	$	856	$	1,038		$	1,028		$	1,094		$	1,067		$	2,535	$	3,189

[1] Includes equity securities, trading.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMPONENTS OF NET REALIZED CAPITAL GAINS (LOSSES)

CONSOLIDATED



	THREE MONTHS ENDED																					NINE MONTHS ENDED
	Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012			Mar. 31 2012			Sept. 30 2013			Sept. 30 2012
Net Realized Capital Gains (Losses)
Gross gains on sales [1]	$	106		$	211		$	1,717		$	155		$	194		$	245		$	227		2,034			666
Gross losses on sales	(139		)	(118		)	(82		)	(54		)	(131		)	(158		)	(97		)	(339		)	(386		)
Net impairment losses [2]	(26		)	(12		)	(21		)	(185		)	(37		)	(98		)	(29		)	(59		)	(164		)
Valuation allowances on mortgage loans	—			—			—			13			—			—			1			—			1
Japan fixed annuity contract hedges, net [3]	(8		)	1			3			6			(24		)	2			(20		)	(4		)	(42		)
Periodic net coupon settlements on credit derivatives/Japan [4]	3			—			(6		)	(11		)	2			4			(5		)	(3		)	1
Results of variable annuity hedge program
U.S. GMWB derivatives, net	203			(31		)	47			68			381			(115		)	185			219			451
U.S. macro hedge	(50		)	(47		)	(85		)	(48		)	(109		)	6			(189		)	(182		)	(292		)
Total U.S. program	153			(78		)	(38		)	20			272			(109		)	(4		)	37			159
International program	(286		)	(742		)	(171		)	(810		)	(176		)	720			(1,201		)	(1,199		)	(657		)
Total results of variable annuity hedge program	(133		)	(820		)	(209		)	(790		)	96			611			(1,205		)	(1,162		)	(498		)
Other net gain (loss) [5]	35			90			204			388			(5		)	(39		)	200			329			156
Total net realized capital gains (losses), before tax and DAC	$	(162	)	$	(648	)	$	1,606		$	(478	)	$	95		$	567		$	(928	)	$	796		$	(266	)
Less: Realized gain on dispositions, before tax	—			1			1,574			—			—			—			—			1,575			—
Less: Realized gains (losses), included in core earnings, before tax	4			2			(5		)	(10		)	9			9			(1		)	1			17
Total net realized capital gains (losses) and other, before tax and DAC, excluded from core earnings (losses)	(166		)	(651		)	37			(468		)	86			558			(927		)	(780		)	(283		)
Less: Impacts of DAC	28			(6		)	(6		)	(31		)	(6		)	(25		)	(44		)	16			(75		)
Less: Impacts of tax	(64		)	(232		)	24			(155		)	31			201			(312		)	(272		)	(80		)
Total net realized capital gains (losses), net of tax and DAC, excluded from core earnings (losses)	$	(130	)	$	(413	)	$	19		$	(282	)	$	61		$	382		$	(571	)	$	(524	)	$	(128	)


[1]	Includes $1.5 billion of gains for the three months ended March 31, 2013 and nine months ended September 30, 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, and changes in value of 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



	September 30, 2013				June 30, 2013				March 31, 2013				December 31, 2012				September 30, 2012
	Amount [1]		Percent		Amount [1]		Percent		Amount [1]		Percent		Amount [1][2]		Percent		Amount [1]		Percent
Total investments	$	103,064	100.0	%	$	105,520	100.0	%	$	114,838	100.0	%	$	134,250	100.0	%	$	137,168	100.0	%
Less: Equity securities, trading	22,343		21.7	%	23,362		22.1	%	28,099		24.5	%	28,933		21.6	%	29,980		21.9	%
Total investments excluding trading securities	$	80,721	78.3	%	$	82,158	77.9	%	$	86,739	75.5	%	$	105,317	78.4	%	$	107,188	78.1	%
Asset-backed securities (“ABS”)	$	2,362	3.7	%	$	2,453	3.8	%	$	2,422	3.5	%	$	2,763	3.2	%	$	2,758	3.2	%
Collateralized debt obligations (“CDOs”)	2,550		4.0	%	2,623		4.0	%	2,558		3.7	%	3,040		3.5	%	3,072		3.5	%
Commercial mortgage-backed securities (“CMBS”)	4,489		7.0	%	4,733		7.3	%	5,205		7.5	%	6,321		7.4	%	6,273		7.2	%
Corporate	28,770		45.0	%	29,666		45.7	%	31,468		45.2	%	44,049		51.3	%	43,433		50.1	%
Foreign government/government agencies	3,968		6.2	%	3,825		5.9	%	3,927		5.6	%	4,136		4.8	%	4,216		4.9	%
Municipal	12,543		19.6	%	12,569		19.4	%	13,238		19.0	%	14,361		16.7	%	14,291		16.5	%
Residential mortgage-backed securities (“RMBS”)	5,086		7.9	%	5,167		8.0	%	6,716		9.6	%	7,480		8.7	%	7,477		8.6	%
U.S. Treasuries	4,255		6.6	%	3,845		5.9	%	4,133		5.9	%	3,772		4.4	%	5,206		6.0	%
Total fixed maturities, AFS [3]	$	64,023	100.0	%	$	64,881	100.0	%	$	69,667	100.0	%	$	85,922	100.0	%	$	86,726	100.0	%
U.S. government/government agencies	$	8,923	13.9	%	$	8,588	13.2	%	$	10,563	15.2	%	$	10,975	12.8	%	$	12,458	14.4	%
AAA	6,377		10.0	%	6,638		10.2	%	7,265		10.4	%	9,220		10.7	%	9,128		10.5	%
AA	12,923		20.2	%	13,273		20.5	%	13,877		19.9	%	16,104		18.7	%	16,305		18.8	%
A	15,412		24.1	%	15,514		23.9	%	17,007		24.4	%	22,650		26.4	%	21,923		25.3	%
BBB	16,187		25.2	%	16,570		25.6	%	17,079		24.5	%	22,689		26.4	%	22,665		26.1	%
BB & below	4,201		6.6	%	4,298		6.6	%	3,876		5.6	%	4,284		5.0	%	4,247		4.9	%
Total fixed maturities, AFS [3]	$	64,023	100.0	%	$	64,881	100.0	%	$	69,667	100.0	%	$	85,922	100.0	%	$	86,726	100.0	%


[1]	Represents the value at which the assets are carried on the Consolidating Balance Sheets. Consolidating Balance Sheets as of September 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 SEPTEMBER 30, 2013



	Cost or Amortized Cost		Fair Value		Percent of Total Invested Assets [1]
Top Ten Corporate and Equity, AFS, Exposures by Sector
Utilities	$	5,701	$	6,059	7.5	%
Financial Services	5,485		5,545		6.9	%
Consumer non-cyclical	3,467		3,754		4.6	%
Technology and communications	3,209		3,411		4.2	%
Basic Industry	2,722		2,805		3.5	%
Energy	2,384		2,545		3.1	%
Capital goods	2,068		2,230		2.8	%
Consumer cyclical	1,839		1,951		2.4	%
Transportation	989		1,048		1.3	%
Other	256		284		0.4	%
Total	$	28,120	$	29,632	36.7	%
Top Ten Exposures by Issuer [2]
Government of Japan [3]	$	2,568	$	2,554	3.2	%
State of California	297		313		0.4	%
National Grid PLC	266		289		0.4	%
Verizon Communications Inc.	258		279		0.4	%
Goldman Sachs Group Inc.	261		271		0.3	%
Commonwealth of Massachusetts	241		263		0.3	%
State of Illinois	271		263		0.3	%
General Electric Co.	282		258		0.3	%
AT&T Inc.	219		250		0.3	%
JP Morgan Chase & Co.	274		250		0.3	%
Total	$	4,937	$	4,990	6.2	%


[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.