8-K

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): February 2, 2017

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 February 2, 2017, The Hartford Financial Services Group, Inc. (the "Company") issued (i) a press release announcing its financial results for the quarterly period ended December 31, 2016, and (ii) its Investor Financial Supplement (“IFS”) relating to its financial results for the quarterly period ended December 31, 2016. 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 February 2, 2017
99.2	Investor Financial Supplement of The Hartford Financial Services Group, Inc. for the quarterly period ended December 31, 2016

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:	February 2, 2017	By:	/s/ Scott R. Lewis
		Name:	Scott R. Lewis
		Title:	Senior Vice President and Controller

EX-99.1

NEWS RELEASE

The Hartford Reports Fourth Quarter2016 Net Loss Per Diluted Share Of $0.22 And Core Earnings Per Diluted Share* Of $1.08

• Net loss of $81 million compared with net income of $421 million in fourth quarter 2015 primarily due to a $423 million, after-tax, charge related to the previously-announced retroactive reinsurance agreement covering asbestos and environmental (A&E) liability exposures; net loss per diluted share of $0.22 compared with net income per diluted share of $1.01 in fourth quarter2015

• Core earnings* of $415 million decreased 7% from $445 million in fourth quarter 2015; core earnings per diluted share* of $1.08 rose 1% from $1.07 in fourth quarter2015 due to the impact of equity repurchases

• Commercial Lines combined ratio of 91.3, a 3.2 point increase from fourth quarter2015; Underlying combined ratio* of 88.2, flat with fourth quarter2015

• Personal Lines combined ratio of 106.7, an 11.4 point deterioration from fourth quarter2015; underlying combined ratio of 101.8, an 8.3 point deterioration from fourth quarter2015 due to automobile liability, a portion of which related to the first nine months of 2016

• Book value per diluted share of $44.35, up 3% from Dec. 31, 2015; book value per diluted share excluding accumulated other comprehensive income (AOCI)* was $45.24, up 3%

HARTFORD, Conn., Feb. 2, 2017 – The Hartford (NYSE:HIG) reported a net loss of $81 millionin fourth quarter2016 compared with net income of $421 million in fourth quarter2015 and core earnings of $415 million in fourth quarter2016, down from $445 million in fourth quarter2015.

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

The net loss was primarily due to a fourth quarter2016 charge of $423 million, after-tax, resulting from a reinsurance agreement with National Indemnity Company covering The Hartford's A&E liability exposures. The net loss for fourth quarter 2016 also included an unlock charge of $12 million, after-tax, compared with an unlock benefit of $35 million, after-tax, in fourth quarter2015. Both fourth quarter 2016 net loss and core earnings were affected by the $102 million, after-tax, decrease in property and casualty (P&C) underwriting results, partially offset by a $40 million, after-tax, increase

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in investment income from limited partnerships and other alternative investments (LPs). The decrease in P&C underwriting results compared with fourth quarter 2015 was primarily due to higher current accident year personal automobile liability losses and, for P&C in total, a $39 million, after-tax, net unfavorable change in prior accident year development (PYD) and an $18 million, after-tax, increase in catastrophe losses.

Fourth quarter2016 net loss per diluted share was $0.22 compared with net income per diluted share of $1.01 in fourth quarter2015. During 2016, the company repurchased 30.8 million common shares for a total of $1.3 billion, which was the primary contributor to an 8% decrease in the company's weighted average diluted common shares outstanding. Core earnings per diluted share in fourth quarter2016 were $1.08 compared with $1.07 in fourth quarter2015, an increase of 1% as the impact of share repurchases more than offset the 7% decline in core earnings.

"The Hartford delivered strong performance this quarter, although losses from personal auto and the charge from our reinsurance agreement for asbestos and environmental exposures impacted our results,” said The Hartford’s Chairman and CEO Christopher Swift. “In light of market conditions, we are pleased with the strong margins in Commercial Lines and Group Benefits, reflecting disciplined execution, and also with the performance of Mutual Funds and Talcott Resolution. In Personal Lines our numerous initiatives are improving the quality and price adequacy of our new business and renewals, although financial results remained disappointing.”

The Hartford’s President Doug Elliot said, “Commercial Lines had an excellent quarter, with a stable underlying combined ratio of 88.2, solid growth in new business, and consistent retention and renewal written price increases. Group Benefits delivered very good results, with top line growth and an improved core earnings margin. However, Personal Lines had a net loss for the quarter as we strengthened auto bodily injury liability reserves for accident years 2015 and 2016 in response to severity trends that remain elevated. With the pricing and underwriting actions we have implemented in Personal Lines auto, we expect better results in 2017.”

Swift concluded, “I am proud of the successes we achieved in 2016 as we navigated through challenging market environments. Looking forward, we expect competition and loss cost trends to put modest pressure on our strong Commercial Lines and Group Benefits margins. In Personal Lines, we are working diligently to achieve better results in 2017. Across the company, we will remain a disciplined underwriter, balancing growth and profitability, as we continue investing in our businesses to generate long-term growth with greater efficiency.”

Book value per diluted share was $44.35 as of Dec. 31, 2016, up 3% compared with Dec. 31, 2015 as a result of a 7% decrease in common shares outstanding and dilutive potential common shares, partially offset by a 4% decrease in stockholders' equity resulting from share repurchases and common stockholder dividends in excess of net income during 2016. Excluding AOCI, book value per diluted share as of Dec. 31, 2016 also increased 3% to $45.24 from $43.76 as of Dec. 31, 2015.

Net income return on equity (ROE) was 5.2% in fourth quarter2016 compared with 9.3% in fourth quarter2015, and core earnings ROE* was 7.6% in fourth quarter2016 compared with 9.2% in fourth quarter2015.

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FINANCIAL RESULTS SUMMARY

($ in millions except per share data)	Three Months Ended			Year Ended
	Dec 31 2016	Dec 31 2015	Change¹	Dec 31 2016	Dec 31 2015	Change¹
Net income (loss)	$(81)	$421	NM	$896	$1,682	(47)%
Less: Unlock benefit (charge), before tax	(20)	53	NM	(2)	80	NM
Less: Net realized capital losses after deferred policy acquisition costs (DAC), excluded from core earnings, before tax	(146)	(135)	(8)%	(256)	(175)	(46)%
Less: Restructuring and other costs, before tax	—	(4)	(100)%	—	(20)	(100)%
Less: Loss on extinguishment of debt, before tax	—	—	—	—	(21)	(100)%
Less: (Loss) gain on reinsurance transactions, before tax	(650)	—	—	(650)	28	NM
Less: Income tax benefit, including amounts related to before tax items excluded from core earnings	320	62	NM	469	131	NM
Less: Income from discontinued operations, after-tax	—	—	—	—	9	(100)%
Core earnings	$415	$445	(7)%	$1,335	$1,650	(19)%
Weighted average diluted common shares outstanding	383.8	415.9	(8)%	394.8	425.2	(7)%
Net income per diluted share²	$(0.22)	$1.01	NM	$2.27	$3.96	(43)%
Core earnings per diluted share²	$1.08	$1.07	1%	$3.38	$3.88	(13)%
Select operating data:
Net investment income	$758	$695	9%	2,961	3,030	(2)%
Annualized investment yield, before tax, excluding LPs	4.2%	4.1%	0.1	4.1%	4.1%	—
Combined ratio by segment:
Commercial Lines	91.3	88.1	(3.2)	92.8	92.6	(0.2)
Personal Lines	106.7	95.3	(11.4)	104.8	97.0	(7.8)
P&C combined ratio	97.2	91.6	(5.6)	100.1	96.6	(3.5)
Impact of catastrophes and PYD on combined ratio	4.1	1.1	(3.0)	8.2	5.6	(2.6)
Underlying combined ratio by segment:
Commercial Lines	88.2	88.2	—	89.4	90.0	0.6
Personal Lines	101.8	93.5	(8.3)	95.4	92.0	(3.4)
P&C underlying combined ratio	93.1	90.5	(2.6)	91.8	91.0	(0.8)
Group Benefits net income margin	6.9%	4.2%	2.7	6.3%	5.4%	0.9
Group Benefits core earnings margin*	6.5%	4.6%	1.9	5.7%	5.6%	0.1
Select financial measures:
Common shares outstanding and dilutive potential common shares				381.1	410.7	(7)%
Book value per diluted share				$44.35	$42.96	3%
Book value per diluted share (ex. AOCI)				$45.24	$43.76	3%
ROE - Net income3				5.2%	9.3%	(4.1)
ROE - Net income, excluding Talcott Resolution3				6.8%	12.0%	(5.2)
ROE - Core earnings*3				7.6%	9.2%	(1.6)
ROE - Core earnings, excluding Talcott Resolution*3				8.9%	10.9%	(2.0)

[1] 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

[2] Includes dilutive potential common shares

[3] Calculated based on last 12-months net income and core earnings; for ROE - Net Income, the denominator is stockholders’ equity including AOCI; for ROE - Core Earnings, the denominator is stockholders’ equity excluding AOCI

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2017 KEY BUSINESS METRICS OUTLOOK

The Hartford also announced its outlook for several 2017 key business metrics. The company does not provide an outlook for net income or core earnings. These key business metrics are management estimates based on business, competitive, capital market, catastrophe and other assumptions. The metrics, which are presented below, are subject to change for many reasons, including unusual or unpredictable items such as weather or catastrophe losses, change in loss frequency and severity, regulatory changes or assessments, PYD, capital markets or investment results and other factors that are not within management's control. The company has frequently experienced unusual or unpredictable changes in revenues, expenses or other items that were not anticipated in prior outlooks.

($ in millions)	2016 Actual	2017 Outlook
Key Business Metrics
Commercial Lines combined ratio1	92.8	92.5 - 94.5
Personal Lines combined ratio1	104.8	99.0 - 101.0
P&C current accident year catastrophe loss ratio1	3.9	3.5
P&C net investment income, before tax, excluding limited partnerships and other alternative investments (LPs)2	$1,078	$975 - $1,025

[1] 2017 metrics include outlook for P&C catastrophe loss ratio of 3.5, reflecting an outlook of 2.3 points in Commercial Lines and 5.8 points in Personal Lines; catastrophes vary by quarter due to the seasonality of weather trends

[2] A reconciliation of this metric to the GAAP measure P&C net investment income, before tax, is not calculable on a forward-looking basis because net investment income on LPs has historically been volatile due to capital markets, real estate sales, and other factors, and therefore it is not possible to provide a reliable forecast of net investment income on LPs

FOURTH QUARTER 2016 SEGMENT RESULTS

($ in millions)	Three Months Ended
	Net Income			Core Earnings
	Dec 31 2016	Dec 31 2015	Change	Dec 31 2016	Dec 31 2015	Change
P&C segments:
Commercial Lines	$267	$293	(9)%	$277	$289	(4)%
Personal Lines	(18)	51	NM	(17)	51	NM
P&C Other Operations	(423)	19	NM	15	18	(17)%
Property & Casualty	(174)	363	NM	275	358	(23)%
Group Benefits	63	37	70%	59	40	48%
Mutual Funds	17	20	(15)%	17	20	(15)%
Sub-total	(94)	420	NM	351	418	(16)%
Talcott Resolution	45	28	61%	111	83	34%
Corporate	(32)	(27)	(19)%	(47)	(56)	16%
Total	$(81)	$421	NM	$415	$445	(7)%

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The table below summarizes certain fourth quarter2016 and fourth quarter2015 items of interest that impact both net income and core earnings. The unfavorable PYD in fourth quarter2016 includes development on commercial and personal automobile liability reserves, principally from the 2015 accident year, which the company disclosed in early December 2016.

($ in millions except per share data)	Three Months Ended
	Dec 31 2016	Dec 31 2015	Change
PYD, after-tax, favorable (unfavorable)	$(31)	$8	NM
Net investment income on LPs, after-tax	$48	$8	$40
Current accident year catastrophe (losses), after-tax	$(40)	$(22)	$(18)
Total	$(23)	$(6)	$(17)
Total per diluted share	$(0.06)	$(0.01)	$(0.05)

COMMERCIAL LINES BUSINESS METRICS

($ in millions)	Three Months Ended
	Dec 31 2016	Dec 31 2015	Change
Combined ratio	91.3	88.1	(3.2)
Small Commercial	90.5	85.3	(5.2)
Middle Market	92.0	93.3	1.3
Specialty Commercial	88.8	83.9	(4.9)
Impact of catastrophes and PYD on combined ratio	3.1	(0.2)	NM
Underlying combined ratio	88.2	88.2	—
Small Commercial	86.0	85.1	(0.9)
Middle Market	88.9	89.0	0.1
Specialty Commercial	94.8	98.1	3.3
Written premiums	$1,664	$1,609	3%
Standard Commercial renewal written pricing increases	2%	2%	—

Commercial Lines combined ratio in fourth quarter2016 was 91.3, a deterioration of 3.2 points from fourth quarter2015. Approximately 2.2 points of the deterioration was due to net unfavorable PYD in fourth quarter 2016 compared with favorable PYD in fourth quarter2015 and 1.1 points related to higher catastrophe losses primarily comprised of losses from Hurricane Matthew as well as other wind and hail events. The net unfavorable PYD in fourth quarter2016 primarily resulted from elevated severity in the Small Commercial automobile and package business lines. This was partially offset by favorable frequency in workers’ compensation across Commercial Lines related to recent accident years.

The underlying combined ratio in fourth quarter2016 was 88.2, flat compared with fourth quarter2015, as favorable frequency in workers' compensation was offset by higher frequency and severity in commercial automobile, a portion of which relates to the first three quarters of 2016.

Commercial Lines written premiums were $1,664 million in fourth quarter2016, an increase of 3% from fourth quarter2015 reflecting 7% growth in Small Commercial, which includes the addition of Maxum Specialty, and 1% growth in Middle Market, partially offset by a 2% decline in Specialty Commercial. Fourth quarter 2016 Standard Commercial renewal written price increases averaged

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2%, reflecting a 4% increase in Small Commercial and flat pricing in Middle Market, exclusive of specialty programs and livestock lines of business.

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PERSONAL LINES BUSINESS METRICS

($ in millions)	Three Months Ended
	Dec 31 2016	Dec 31 2015	Change
Combined ratio	106.7	95.3	(11.4)
Automobile	118.1	103.5	(14.6)
Homeowners	80.9	76.9	(4.0)
Impact of catastrophes and PYD on combined ratio	5.0	1.8	(3.2)
Underlying combined ratio	101.8	93.5	(8.3)
Automobile	113.6	102.9	(10.7)
Homeowners	74.7	72.4	(2.3)
Written premiums	$892	$936	(5)%
Renewal written pricing increases
Automobile	9%	6%	3.0
Homeowners	10%	8%	2.0

Personal Lines fourth quarter2016 combined ratio was 106.7, an 11.4 point deterioration compared with fourth quarter2015 largely due to automobile. Unfavorable PYD was 2.1 points primarily for personal automobile liability losses, compared with a favorable 0.3 point in fourth quarter2015. Catastrophe losses also increased, comprising 2.9 points of the fourth quarter2016 combined ratio compared with 2.1 points in fourth quarter2015. The impact of these items was partially offset by a 3.5 point improvement in the fourth quarter2016 expense ratio compared with fourth quarter2015 largely due to lower direct marketing spending.

The underlying combined ratio in fourth quarter2016 was 101.8, an 8.3 point deterioration from fourth quarter2015 primarily due to increased automobile bodily injury liability severity and higher fire losses in homeowners, partially offset by lower expenses. A portion of the deterioration in fourth quarter 2016 automobile results related to the first three accident quarters of 2016, as automobile liability severity trends that emerged in fourth quarter2016 were higher than the trends observed in the first nine months of 2016.

Personal Lines written premiums were $892 million, a decline of 5% from fourth quarter2015 reflecting lower new business and lower policy count retention as a result of profitability improvement initiatives over the past year, partially offset by renewal written price increases. Fourth quarter 2016 personal automobile new business premium declined 58% and homeowners new business premium declined 52% from fourth quarter2015. Policy count retention was 83% for both automobile and homeowners, down from 84% and 85%, respectively, in fourth quarter 2015. Renewal written price increases in fourth quarter2016 averaged 9% in automobile, 2 points higher than third quarter 2016 and 3 points higher than fourth quarter 2015, and 10% in homeowners, up 2 points from fourth quarter 2015.

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GROUP BENEFITS BUSINESS METRICS

($ in millions)	Three Months Ended
	Dec 31 2016	Dec 31 2015	Change
Group life loss ratio	70.6	76.0	5.4
Group disability loss ratio	84.0	82.9	(1.1)
Total loss ratio	76.7	78.4	1.7
Expense ratio	25.2	26.0	0.8
Fully insured ongoing premiums1	$788	$774	2%

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

Group Benefits fourth quarter2016 total loss ratio was 76.7%, a 1.7 point improvement from fourth quarter2015 primarily due to a 5.4 point decline in the group life loss ratio, largely resulting from favorable changes in reserve estimates. The group disability loss ratio increased 1.1 points due to higher severity, partially offset by favorable recoveries, increased pricing and slightly improved incidence. The expense ratio improved 0.8 point from fourth quarter2015 reflecting higher premiums and lower operating expenses.

Fully insured ongoing premiums in fourth quarter2016 were $788 million, up 2% from fourth quarter2015 due to strong persistency and increased pricing. Fully insured ongoing sales were $43 million in fourth quarter2016, down 10% compared with fourth quarter2015.

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TALCOTT RESOLUTION

($ in millions)	Three Months Ended
	Dec 31 2016	Dec 31 2015	Change
Net income	$45	$28	61%
Less: Unlock benefit (charge), before tax	(20)	53	NM
Less: Net realized capital losses after DAC, excluded from core earnings, before tax	(9)	(135)	93%
Less: Income tax benefit (expense) on items not included in core earnings	(37)	27	NM
Core earnings	$111	$83	34%
Variable annuity contract count (in thousands)	544	603	(10)%
Fixed annuity and other contract count (in thousands)	121	128	(5)%

Talcott Resolution fourth quarter2016 net income was $45 million, a 61% increase from $28 million in fourth quarter2015 primarily due to lower net realized capital losses and higher investment income from LPs, partially offset by an unlock charge compared with an unlock benefit in fourth quarter 2015.

Fourth quarter2016 core earnings were $111 million, a 34% increase from $83 million in fourth quarter2015 principally due to higher investment income from LPs and a tax benefit from the conclusion of a prior year federal tax audit. Talcott Resolution net investment income from LPs totaled $18 million, after-tax, in fourth quarter2016 compared with $1 million, after-tax, in fourth quarter2015.

Variable annuity and fixed annuity contract counts as of Dec. 31, 2016 both declined 2% from Sept. 30, 2016 and declined 10% and 5%, respectively, from Dec. 31, 2015. The decline in contract counts reflects normal surrender activity.

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MUTUAL FUNDS

Mutual Funds net income and core earnings in fourth quarter2016 were $17 million, down 15% from $20 million in fourth quarter2015 due to costs related to the acquisition of Lattice Strategies and the adoption of 10 Schroders mutual funds.

Average total Mutual Funds segment assets under management (AUM) increased to $95.9 billion in fourth quarter2016 compared with $93.0 billion in fourth quarter2015. The increase was primarily due to market appreciation during 2016 and the addition of approximately $3.0 billion from the Schroders funds adoption in October 2016, partially offset by the continued runoff of Talcott Resolution AUM.

CORPORATE

Corporate net loss in fourth quarter2016 was $32 million compared with a net loss of $27 million in fourth quarter2015. The $5 million increase in net loss was primarily due to a $34 million tax benefit in fourth quarter2015 from the reduction of the deferred tax valuation allowance on capital loss carryovers, largely offset by lower interest and other expenses and a net benefit of $17 million in fourth quarter2016 from investments in solar energy partnerships.

Corporate core losses were $47 million in fourth quarter2016, a $9 million improvement from core losses of $56 million in fourth quarter2015 due to lower interest and other expenses as well as higher net investment income.

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INVESTMENTS

($ in millions before tax)	Three Months Ended
	Dec 31 2016	Dec 31 2015	Change
Total investments	$70,637	$72,918	(3)%
Net investment income	$758	$695	9%
Net investment income from LPs	$73	$12	NM
Net impairment losses, including mortgage loan valuation allowances	$12	$42	71%
Annualized investment yield1	4.4%	3.9%	0.5
Annualized investment yield from LPs	12.1%	1.5%	10.6
Annualized investment yield, excluding LPs	4.2%	4.1%	0.1

[1] Yields, before tax, calculated using annualized net investment income divided by the monthly average invested assets at cost, amortized cost, or adjusted carrying value, as applicable, excluding repurchase agreement and securities lending collateral, if any, and derivatives book value

Total investments decreased 3% to $70.6 billion at Dec. 31, 2016 compared with $72.9 billion at Dec. 31, 2015. The decrease in total investments primarily reflects the continued runoff of Talcott Resolution and the third quarter 2016 transfer to assets held for sale of $0.6 billion of investments related to the pending sale of the company's U.K. P&C run-off subsidiaries.

Fourth quarter2016 net investment income totaled $758 million, before tax, a 9% increase from fourth quarter2015 principally due to higher investment income from LPs. Investment income from LPs totaled $73 million, before tax, in fourth quarter2016 compared with $12 million, before tax, in fourth quarter2015. The increase was largely due to real estate sales and strong private equity returns. Excluding the impact of LPs, net investment income was essentially flat compared with fourth quarter2015.

Fourth quarter2016 annualized investment yield increased to 4.4%, before tax, from 3.9%, before tax, in fourth quarter2015 primarily due to higher investment income from LPs. Fourth quarter2016 annualized investment returns from LPs was 12.1%, before tax, compared with 1.5%, before tax, in fourth quarter2015. Fourth quarter2016 annualized investment yield, excluding LPs, was 4.2%, before tax, slightly higher than 4.1% in fourth quarter2015 due to the higher pre-payment penalties on commercial mortgage whole loans and make-whole payments compared with fourth quarter 2015.

The credit performance of the investment portfolio remained strong in fourth quarter2016. Net impairment losses including mortgage loan valuation allowances totaling $12 million, before tax, compared with $42 million, before tax, in fourth quarter2015.

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CONFERENCE CALL

The Hartford will discuss its fourth quarter2016 financial results and outlook for several 2017 key business metrics in a webcast at 9 a.m. EST on Friday, Feb. 3, 2017. The webcast can be accessed live or as a replay through the investor relations section of The Hartford's website at https://ir.thehartford.com.

More detailed financial information can be found in The Hartford's Investor Financial Supplement for Dec. 31, 2016, and the Fourth Quarter2016 Financial Results Presentation, both of which are available at https://ir.thehartford.com.

ABOUT THE HARTFORD

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

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

HIG-F

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 https://ir.thehartford.com. In addition, you may automatically receive email alerts and other information about The Hartford when you enroll your email address by visiting the “Email Alerts” section at https://ir.thehartford.com.

Media Contacts                    Investor Contacts

Michelle Loxton                    Sabra Purtill, CFA

860-547-7413                        860-547-8691

michelle.loxton@thehartford.com            sabra.purtill@thehartford.com

Matthew Sturdevant                    Sean Rourke

860-547-8664                        860-547-5688

matthew.sturdevant@thehartford.com        sean.rourke@thehartford.com

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATING INCOME STATEMENTS
Three Months Ended December 31, 2016
($ in millions)
	Commercial Lines			Personal Lines			P&C Other Ops			Group Benefits			Mutual Funds		Talcott Resolution			Corporate			Consolidated
Earned premiums	$	1,701		$	967		$	—		$	788		$	—	$	23		$	—		$	3,479
Fee income	—			—			—			20			184		225			1			430
Net investment income	243			36			31			95			—		345			8			758
Other revenues	19			—			—			—			—		—			—			19
Net realized capital gains (losses)	(18		)	(2		)	(26		)	8			—		(14		)	(97		)	(149		)
Total revenues	1,945			1,001			5			911			184		579			(88		)	4,537
Benefits, losses, and loss adjustment expenses	999			816			8			620			—		345			—			2,788
Amortization of DAC	246			84			—			8			7		33			—			378
Insurance operating costs and other expenses	321			134			(3		)	196			150		113			3			914
Interest expense	—			—			—			—			—		—			82			82
Loss on reinsurance transaction	—			—			650			—			—		—			—			650
Total benefits and expenses	1,566			1,034			655			824			157		491			85			4,812
Income (loss) before income taxes	379			(33		)	(650		)	87			27		88			(173		)	(275		)
Income tax expense (benefit)	112			(15		)	(227		)	24			10		43			(141		)	(194		)
Net income (loss)	267			(18		)	(423		)	63			17		45			(32		)	(81		)
Less: Unlock charge, before tax	—			—			—			—			—		(20		)	—			(20		)
Less: Net realized capital gains (losses) after DAC, excluded from core earnings, before tax	(17		)	(2		)	(26		)	7			—		(9		)	(99		)	(146		)
Less: Loss on reinsurance transaction, before tax	—			—			(650		)	—			—		—			—			(650		)
Less: Income tax benefit (expense)	7			1			238			(3		)	—		(37		)	114			320
Core earnings (losses)	$	277		$	(17	)	$	15		$	59		$	17	$	111		$	(47	)	$	415

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATING INCOME STATEMENTS
Three Months Ended December 31, 2015
($ in millions)
	Commercial Lines			Personal Lines			P&C Other Ops			Group Benefits			Mutual Funds		Talcott Resolution			Corporate			Consolidated
Earned premiums	$	1,658		$	978		$	31		$	774		$	—	$	19		$	—		$	3,460
Fee income	—			—			—			17			178		266			2			463
Net investment income	206			30			34			88			1		331			5			695
Other revenues	21			—			—			—			—		—			—			21
Net realized capital gains (losses)	11			—			(1		)	(6		)	—		(128		)	(2		)	(126		)
Total revenues	1,896			1,008			64			873			179		488			5			4,513
Benefits, losses, and loss adjustment expenses	920			680			39			620			—		431			—			2,690
Amortization of DAC	241			89			—			7			6		(53		)	—			290
Insurance operating costs and other expenses	316			163			8			199			141		106			6			939
Interest expense	—			—			—			—			—		—			86			86
Restructuring and other costs	—			—			—			—			—		—			4			4
Total benefits and expenses	1,477			932			47			826			147		484			96			4,009
Income (loss) before income taxes	419			76			17			47			32		4			(91		)	504
Income tax expense (benefit)	126			25			(2		)	10			12		(24		)	(64		)	83
Net income (loss)	293			51			19			37			20		28			(27		)	421
Less: Unlock charge, before tax	—			—			—			—			—		53			—			53
Less: Net realized capital gains (losses) after DAC, excluded from core earnings, before tax	6			1			(1		)	(5		)	—		(135		)	(1		)	(135		)
Less: Restructuring and other costs, before tax	—			—			—			—			—		—			(4		)	(4		)
Less: Income tax benefit (expense)	(2		)	(1		)	2			2			—		27			34			62
Core earnings (losses)	$	289		$	51		$	18		$	40		$	20	$	83		$	(56	)	$	445

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATING INCOME STATEMENTS
($ in millions)
Year Ended December 31, 2016
	Commercial Lines			Personal Lines			P&C Other Ops			Group Benefits			Mutual Funds		Talcott Resolution			Corporate			Consolidated
Earned premiums	$	6,651		$	3,898		$	—		$	3,148		$	—	$	114		$	—		$	13,811
Fee income	—			—			—			75			701		930			4			1,710
Net investment income	917			135			127			366			1		1,384			31			2,961
Other revenues	86			—			—			—			—		—			—			86
Net realized capital gains (losses)	13			2			(70		)	45			—		(155		)	(103		)	(268		)
Total revenues	7,667			4,035			57			3,634			702		2,273			(68		)	18,300
Benefits, losses, and loss adjustment expenses	3,994			3,175			278			2,514			—		1,390			—			11,351
Amortization of DAC	973			348			—			31			24		147			—			1,523
Insurance operating costs and other expenses	1,271			564			13			776			557		438			14			3,633
Interest expense	—			—			—			—			—		—			339			339
Loss on reinsurance transaction	—			—			650			—			—		—			—			650
Total benefits and expenses	6,238			4,087			941			3,321			581		1,975			353			17,496
Income (loss) before income taxes	1,429			(52		)	(884		)	313			121		298			(421		)	804
Income tax expense (benefit)	422			(30		)	(355		)	83			43		54			(309		)	(92		)
Net income (loss)	1,007			(22		)	(529		)	230			78		244			(112		)	896
Less: Unlock charge, before tax	—			—			—			—			—		(2		)	—			(2		)
Less: Net realized capital gains (losses) after DAC, excluded from core earnings, before tax	15			2			(70		)	41			—		(140		)	(104		)	(256		)
Less: Loss on reinsurance transaction, before tax	—			—			(650		)	—			—		—			—			(650		)
Less: Income tax benefit (expense)	(5		)	—			292			(15		)	—		3			194			469
Core earnings (losses)	$	997		$	(24	)	$	(101	)	$	204		$	78	$	383		$	(202	)	$	1,335

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATING INCOME STATEMENTS
($ in millions)
Year Ended December 31, 2015
	Commercial Lines			Personal Lines			P&C Other Ops			Group Benefits			Mutual Funds		Talcott Resolution			Corporate			Consolidated
Earned premiums	$	6,511		$	3,873		$	32		$	3,069		$	—	$	92		$	—		$	13,577
Fee income	—			—			—			67			723		1,041			8			1,839
Net investment income	910			128			133			371			1		1,470			17			3,030
Other revenues	87			—			—			—			—		—			—			87
Net realized capital gains (losses)	(6		)	4			3			(11		)	—		(161		)	15			(156		)
Total revenues	7,502			4,005			168			3,496			724		2,442			40			18,377
Benefits, losses, and loss adjustment expenses	3,886			2,768			243			2,427			—		1,451			—			10,775
Amortization of DAC	951			359			—			31			22		139			—			1,502
Insurance operating costs and other expenses	1,260			609			25			788			568		469			33			3,752
Interest expense	—			—			—			—			—		—			357			357
Loss on extinguishment of debt	—			—			—			—			—		—			21			21
Net loss (gain) on reinsurance transactions	—			—			—			—			—		(28		)	—			(28		)
Restructuring and other costs	—			—			—			—			—		—			20			20
Total benefits and expenses	6,097			3,736			268			3,246			590		2,031			431			16,399
Income (loss) before income taxes	1,405			269			(100		)	250			134		411			(391		)	1,978
Income tax expense (benefit)	409			82			(47		)	63			48		(17		)	(233		)	305
Income (loss) from continuing operations, after-tax	996			187			(53		)	187			86		428			(158		)	1,673
Income from discontinued operations, after-tax	7			—			—			—			—		2			—			9
Net income (loss)	1,003			187			(53		)	187			86		430			(158		)	1,682
Less: Unlock benefit, before tax	—			—			—			—			—		80			—			80
Less: Net realized capital gains (losses) after DAC, excluded from core earnings, before tax	(9		)	4			3			(12		)	—		(175		)	14			(175		)
Less: Restructuring and other costs, before tax	—			—			—			—			—		—			(20		)	(20		)
Less: Loss on extinguishment of debt, before tax	—			—			—			—			—		—			(21		)	(21		)
Less: Gain on reinsurance transaction, before tax	—			—			—			—			—		28			—			28
Less: Income tax benefit (expense)	2			(2		)	1			4			—		23			103			131
Less: Income from discontinued operations, after-tax	7			—			—			—			—		2			—			9
Core earnings (losses)	$	1,003		$	185		$	(57	)	$	195		$	86	$	472		$	(234	)	$	1,650

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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 forfourth quarter2016, which is available on The Hartford's website,https://ir.thehartford.com.

Book valueper diluted share excluding accumulated other comprehensive income ("AOCI”): Book value per diluted 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 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 believesbook 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 market value. Book value per diluted share is the most directly comparable GAAP measure. A reconciliation of book value per diluted share, including AOCI to book value per diluted share, excluding AOCI is set forth below.

	As of
	Dec 31 2016	Dec 31 2015	Change
Book value per diluted share, including AOCI	$44.35	$42.96	3%
Less: Per diluted share impact of AOCI	$(0.89)	$(0.80)	(11)%
Book value per diluted share, excluding AOCI	$45.24	$43.76	3%

Core Earnings: The Hartford uses thenon-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, certain restructuring charges, pension settlements, loss on extinguishment of debt, reinsurance gains and losses on business disposition transactions, income tax benefit from reduction in valuation allowance, discontinued operations, and the impact of Unlocks to deferred policy acquisition costs ("DAC"), sales inducement assets, unearned revenue reserves 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.

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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 net income (loss) to core earnings for the quarterly periods ended Dec. 31, 2016 and 2015, is included in this press release. A reconciliation of net income (loss) to core earnings for individual reporting segments can be found in this press release under the heading "The Hartford Financial Services Group, Inc. Consolidating Income Statements" and in The Hartford's Investor Financial Supplement for the quarter ended Dec. 31, 2016.

Core earnings margin: The Hartford uses the non-GAAP measure core earnings margin to evaluate, and believes it is an important measure of, the Group Benefits segment's operating performance. Core earnings margin is calculated by dividing core earnings by revenues, excluding buyouts and realized gains (losses). Net income margin is the most directly comparable U.S. GAAP measure. The company believes that core earnings margin provides investors with a valuable measure of the performance of Group Benefits because it reveals trends in the business that may be obscured by the effect of buyouts and realized gains (losses). Core earnings margin should not be considered as a substitute for net income margin and does not reflect the overall profitability of Group Benefits. Therefore, the company believes it is important for investors to evaluate both core earnings margin and net income margin when reviewing performance. A reconciliation of net income margin to core earnings margin for the quarterly periods ended Dec. 31, 2016 and 2015, is set forth below.

	Three Months Ended			Year Ended
Margin	Dec 31 2016	Dec 31 2015	Change	Dec 31 2016		Dec 31 2015		Change
Net income margin	6.9%	4.2%	2.7	6.3	%	5.4	%	0.9
Less: Effect of net capital realized gains, net of tax on after-tax margin	0.4%	(0.4)%	NM	0.6	%	(0.2	)%	NM
Core earnings margin	6.5%	4.6%	1.9	5.7	%	5.6	%	0.1

Core earnings per diluted share: Core earnings 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 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 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 per diluted share when reviewing the company's performance. A reconciliation of net income (loss) per diluted common share to core earnings per diluted share for thequarterly periods ended Dec. 31, 2016 and 2015 is provided in the table below.

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	Three Months Ended			Year Ended
	Dec 31 2016	Dec 31 2015	Change	Dec 31 2016	Dec 31 2015	Change
PER SHARE DATA
Diluted earnings (losses) per common share:
Net income (loss) per share	$(0.22)	$1.01	NM	$2.27	$3.96	(43)%
Less: Unlock benefit (charge), before tax	(0.05)	0.13	NM	(0.01)	0.19	NM
Less: Net realized capital losses after DAC, excluded from core earnings, before tax	(0.38)	(0.32)	(19)%	(0.65)	(0.41)	(59)%
Less: Restructuring and other costs, before tax	—	(0.01)	100%	—	(0.05)	(100)%
Less: Loss on extinguishment of debt, before tax	—	—	—	—	(0.05)	(100)%
Less: (Loss) gain on reinsurance transactions, before tax	(1.69)	—	(100)%	(1.65)	0.07	NM
Less: Income tax benefit on items excluded from core earnings	0.83	0.14	NM	1.20	0.30	NM
Less: Income from discontinued operations, after-tax	—	—	—	—	0.03	(100)%
Less: Use of weighted average shares in denominator*	(0.01)	—	(100)%	—	—	—
Core earnings per share	$1.08	$1.07	1%	$3.38	$3.88	(13)%

* In the three months ended December 31, 2016, net loss per share uses weighted average basic shares outstanding whereas core earnings per share uses weighted average diluted share outstanding.

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

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A reconciliation of Consolidated ROE - Net income to Consolidated ROE - Core earnings is set forth below.

	Last Twelve Months Ended
	Dec 31 2016	Dec 31 2015
ROE - Net income (loss)	5.2%	9.3%
Less: Unlock benefit (charge), before tax	—	0.4
Less: Net realized capital gains (losses) after DAC, excluded from core earnings, before tax	(1.5)	(1.0)
Less: Restructuring and other costs, before tax	—	(0.1)
Less: Loss on extinguishment of debt, before tax	—	(0.1)
Less: (Loss) gain on reinsurance transactions, before tax	(3.8)	0.2
Less: Pension settlement, before tax	—	—
Less: Income tax benefit on items not included in core earnings	2.7	0.7
Less: Income from discontinued operations, after-tax	—	—
Less: Impact of AOCI, excluded from Core ROE	0.2	—
ROE - Core earnings (losses)	7.6%	9.2%

A reconciliation of Consolidated ROE - Net income, excluding Talcott Resolution to Consolidated ROE - Core earnings, excluding Talcott Resolution is set forth below.

	Last Twelve Months Ended
	Dec 31 2016	Dec 31 2015
ROE - Net income (excluding Talcott Resolution)	6.8%	12.0%
Less: Net realized capital gains (losses) after DAC, excluded from core earnings, before tax	(1.1)	—
Less: Restructuring and other costs, before tax	—	(0.2)
Less: Loss on extinguishment of debt, before tax	—	(0.2)
Less: (Loss) gain on reinsurance transaction, before tax	(6.0)	—
Less: Pension settlement, before tax	—	—
Less: Income tax benefit on items not included in core earnings	4.3	1.0
Less: Income from discontinued operations, after-tax	—	0.1
Less: Impact of AOCI, excluded from Core ROE	0.7	0.4
ROE - Core earnings (excluding Talcott Resolution)	8.9%	10.9%

Underlying combined ratio: Represents the combined ratio before catastrophes and prior accident year development (PYD)and 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 (also known as a loss 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 underlying combined ratio represents the combined ratio for the current accident year, excluding the impact of current

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accident year catastrophes. 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 underlying combined ratio for individual reporting segmentscan be found in this press release under the headings "Commercial Lines Business Metrics" and "Personal Lines Business Metrics."

Underwriting gain (loss): The Hartford's management evaluates profitability of the Commercial and Personal Lines segments primarily on the basis of underwriting gain or loss. Underwriting gain (loss) is a before tax 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 Dec. 31, 2016 and 2015, is set forth below.

	Three Months Ended		Year Ended
	Dec 31 2016	Dec 31 2015	Dec 31 2016	Dec 31 2015
Commercial Lines
Net income	$267	$293	$1,007	$1,003
Add: Income tax expense	112	126	422	409
Less: Other income (expense)	1	(2)	(1)	2
Less: Net realized capital gains (losses)	(18)	11	13	(6)
Less: Net investment income	243	206	917	910
Less: Net servicing income	5	6	22	20
Less: Income from discontinued operations, after-tax	—	—	—	7
Underwriting gain	$148	$198	$478	$479
Personal Lines
Net income (loss)	$(18)	$51	$(22)	$187
Add: Income tax expense (benefit)	(15)	25	(30)	82
Less: Other income (expense)	(2)	(1)	—	15
Less: Net realized capital gains (losses)	(2)	—	2	4
Less: Net investment income	36	30	135	128
Less: Net servicing income	—	1	—	4
Underwriting gain (loss)	$(65)	$46	$(189)	$118

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,”

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“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 the risks and uncertainties identified below, as well as factors described in such forward-looking statements or in The Hartford's 2015 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other filings The Hartford makes with the Securities and Exchange Commission.

Risks Relating to Economic, Market and Political Conditions: challenges related to the company’s current operating environment, including global political, economic and market conditions, and the effect of financial market conditions, economic downturns or other potentially adverse macroeconomic developments on the attractiveness of our products, the returns in our investment portfolios and the hedging costs associated with our runoff annuity block; financial risk related to the continued reinvestment of our investment portfolios and performance of our hedge program for our runoff annuity block; market risks associated with our business, including changes in interest rates, inflation risk credit spreads, equity prices, market volatility and implied volatility levels; the impact on our investment portfolio if our investment portfolio is concentrated in any particular segment of the economy;

Risks Relating to Estimates, Assumptions and Valuations: risk associated with the use of analytical models in making decisions in key areas such as underwriting, pricing, capital allocation, hedging, reserving, investments and catastrophe risk management; 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; 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;

Financial Strength, Credit and Counterparty Risks: 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; losses due to nonperformance or defaults by others, including sourcing partners, derivative counterparties and other third parties; the potential for losses due to our reinsurers' unwillingness or inability to meet their obligations under reinsurance contracts and the availability, pricing and adequacy of reinsurance to protect us against losses;

Insurance Industry and Product-Related Risks:the possibility of unfavorable loss development including with respect to long-tailed exposures; the company's ability to accurately estimate the ultimate reserves necessary for asbestos and environmental claims; 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; the possible occurrence of terrorist attacks and the company’s ability to contain its exposure, as a result of, among other factors, the inability to exclude coverage for terrorist attacks from workers' compensation policies and limitations on reinsurance coverage from the federal government under applicable laws; the uncertain effects

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of emerging claim and coverage issues; actions by our competitors, many of which are larger or have greater financial resources than we do; technology changes, such as usage-based methods of determining premiums, advancement in automotive safety features, the development of autonomous vehicles, and platforms that facilitate ride sharing, which may alter demand for the company's products, impact the frequency or severity of losses, and/or impact the way the company markets, distributes and underwrites its products; the company's ability to market, distribute and provide insurance products and investment advisory services through current and future distribution channels and advisory firms; the 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; volatility in our statutory and United States ("U.S.") GAAP earnings and potential material changes to our results resulting from our adjustment of our risk management program to emphasize protection of economic value;

Regulatory and Legal Risks:the cost and other potential effects of increased regulatory and legislative developments, including those that could adversely impact the demand for the company’s products, operating costs and required capital levels; unfavorable judicial or other legal developments; regulatory limitations on the ability of the company and certain of its subsidiaries to declare and pay dividends; 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;

Other Strategic and Operational Risks: risks associated with the runoff of our Talcott Resolution business; the risks, challenges and uncertainties associated with our capital management plan, including as a result of changes in our financial position and earnings, share price, capital position, legal restrictions, other investment opportunities, and other factors; the risks, challenges and uncertainties associated with our expense reduction initiatives and other actions, which may include acquisitions, divestitures or restructurings; 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; the potential for difficulties arising from outsourcing and similar third-party relationships; and the company’s ability to protect its intellectual property and defend against claims of infringement.

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.

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EX-99.2

INVESTOR FINANCIAL SUPPLEMENT

December 31, 2016

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

	As of January 27, 2017
Address:
One Hartford Plaza		A.M. Best	Standard & Poor’s	Moody’s
Hartford, CT 06155	Insurance Financial Strength Ratings:
	Hartford Fire Insurance Company	A+	A+	A1
	Hartford Life and Accident Insurance Company	A	A	A2
	Hartford Life Insurance Company	A-	BBB+	Baa2
Internet address:	Hartford Life and Annuity Insurance Company	A-	BBB+	Baa2
http://www.thehartford.com
	Other Ratings:
	The Hartford Financial Services Group, Inc.:
	Senior debt	a-	BBB+	Baa2
Contacts:	Commercial paper	AMB-1	A-2	P-2
Sabra Purtill
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 30170	211 Quality Circle, Suite 210
	College Station, TX 77842-3170	College Station, TX 77845
	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.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTOR FINANCIAL SUPPLEMENT

TABLE OF CONTENTS

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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATED FINANCIAL RESULTS

	THREE MONTHS ENDED																								YEAR ENDED
	Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Dec 31 2015			Sept 30 2015			Jun 30 2015			Mar 31 2015			Dec 31 2016		Dec 31 2015
HIGHLIGHTS
Net income (loss)	$	(81	)	$	438		$	216		$	323		$	421		$	381		$	413		$	467		$	896	$	1,682
Core earnings *	$	415		$	413		$	122		$	385		$	445		$	364		$	389		$	452		$	1,335	$	1,650
Total revenues	$	4,537		$	4,695		$	4,677		$	4,391		$	4,513		$	4,562		$	4,685		$	4,617		$	18,300	$	18,377
Total assets	$223,432			$228,430			$227,616			$227,493			$228,348			$231,453			$241,020			$246,960
PER SHARE AND SHARES DATA
Basic earnings per common share
Net income (loss)	$	(0.22	)	$	1.14		$	0.55		$	0.81		$	1.03		$	0.92		$	0.99		$	1.11		$	2.31	$	4.05
Core earnings *	$	1.10		$	1.08		$	0.31		$	0.97		$	1.09		$	0.88		$	0.93		$	1.07		$	3.44	$	3.97
Diluted earnings per common share
Net income (loss)	$	(0.22	)	$	1.12		$	0.54		$	0.79		$	1.01		$	0.90		$	0.96		$	1.08		$	2.27	$	3.96
Core earnings *	$	1.08		$	1.06		$	0.31		$	0.95		$	1.07		$	0.86		$	0.91		$	1.04		$	3.38	$	3.88
Weighted average common shares outstanding (basic)	376.6			383.8			391.8			398.5			406.9			413.8			418.7			422.6			387.7		415.5
Dilutive effect of stock compensation	3.7			3.2			3.2			4.2			5.2			5.1			4.4			5.5			3.5		5.0
Dilutive effect of warrants	3.5			3.5			3.6			3.6			3.8			4.1			5.0			5.6			3.6		4.7
Weighted average common shares outstanding and dilutive potential common shares (diluted)	383.8			390.5			398.6			406.3			415.9			423.0			428.1			433.7			394.8		425.2
Common shares outstanding	373.9			379.6			387.9			395.6			401.8			411.3			416.3			421.4
Book value per common share	$	45.21		$	49.15		$	47.84		$	45.78		$	43.91		$	44.26		$	43.78		$	45.27
Per common share impact of accumulated other comprehensive income [1]	$	(0.90	)	$	2.60		$	2.32		$	0.64		$	(0.82	)	$	0.34		$	0.45		$	2.73
Book value per common share (excluding AOCI) *	$	46.11		$	46.55		$	45.52		$	45.14		$	44.73		$	43.92		$	43.33		$	42.54
Book value per diluted share	$	44.35		$	48.30		$	47.02		$	44.90		$	42.96		$	43.32		$	42.86		$	44.13
Per diluted share impact of AOCI	$	(0.89	)	$	2.56		$	2.28		$	0.63		$	(0.80	)	$	0.33		$	0.45		$	2.66
Book value per diluted share (excluding AOCI) *	$	45.24		$	45.74		$	44.74		$	44.27		$	43.76		$	42.99		$	42.41		$	41.47
Common shares outstanding and dilutive potential common shares	381.1			386.3			394.7			403.4			410.7			420.2			425.3			432.3
RETURN ON EQUITY ("ROE") [3]
ROE - Net income (net income last 12 months to stockholders' equity including AOCI)	5.2		%	7.6		%	7.3		%	8.3		%	9.3		%	8.9		%	8.8		%	4.0		%
ROE - Net income, excluding Talcott Resolution [2]	6.8		%	10.8		%	10.5		%	11.0		%	12.0		%	10.3		%	11.3		%	9.3		%
ROE - Core earnings (core earnings last 12 months to stockholders' equity excluding AOCI) *	7.6		%	7.6		%	7.4		%	8.8		%	9.2		%	9.1		%	9.6		%	8.1		%
ROE - Core earnings, excluding Talcott Resolution * [2]	8.9		%	9.1		%	8.9		%	10.3		%	10.9		%	10.5		%	11.9		%	9.9		%

[1] 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.

[2] ROE assumes debt and interest is attributed to Talcott Resolution consistent with the overall debt to capitalization ratios of the consolidated entity. For further information, see Appendix, page 34.

[3] For reconciliations of ROE - Net income to ROE - Core earnings, see Appendix, page 35.

* Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP).

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

	THREE MONTHS ENDED																								YEAR ENDED
	Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Dec 31 2015			Sept 30 2015			Jun 30 2015			Mar 31 2015			Dec 31 2016			Dec 31 2015
Earned premiums	$	3,479		$	3,484		$	3,444		$	3,404		$	3,460		$	3,404		$	3,391		$	3,322		$	13,811		$	13,577
Fee income	430			432			422			426			463			448			469			459			1,710			1,839
Net investment income	758			772			735			696			695			730			796			809			2,961			3,030
Realized capital gains (losses):
Total other-than-temporary impairment (“OTTI”) losses	(14		)	(15		)	(8		)	(27		)	(41		)	(42		)	(13		)	(12		)	(64		)	(108		)
OTTI losses recognized in other comprehensive income	2			1			1			4			2			2			2			—			8			6
Net OTTI losses recognized in earnings	(12		)	(14		)	(7		)	(23		)	(39		)	(40		)	(11		)	(12		)	(56		)	(102		)
Other net realized capital gains (losses) [1]	(137		)	(3		)	60			(132		)	(87		)	(4		)	20			17			(212		)	(54		)
Total net realized capital gains (losses)	(149		)	(17		)	53			(155		)	(126		)	(44		)	9			5			(268		)	(156		)
Other revenues	19			24			23			20			21			24			20			22			86			87
Total revenues	4,537			4,695			4,677			4,391			4,513			4,562			4,685			4,617			18,300			18,377
Benefits, losses and loss adjustment expenses	2,788			2,780			3,142			2,641			2,690			2,710			2,812			2,563			11,351			10,775
Amortization of DAC	378			403			368			374			290			434			391			387			1,523			1,502
Insurance operating costs and other expenses	914			898			912			909			943			971			910			948			3,633			3,772
Loss on extinguishment of debt	—			—			—			—			—			—			21			—			—			21
Loss (gain) on reinsurance transactions [2]	650			—			—			—			—			(20		)	(8		)	—			650			(28		)
Interest expense	82			86			85			86			86			88			89			94			339			357
Total benefits, losses and expenses	4,812			4,167			4,507			4,010			4,009			4,183			4,215			3,992			17,496			16,399
Income (loss) from continuing operations before income taxes	(275		)	528			170			381			504			379			470			625			804			1,978
Income tax expense (benefit) [3] [4] [5]	(194		)	90			(46		)	58			83			7			57			158			(92		)	305
Income (loss) from continuing operations, after-tax	(81		)	438			216			323			421			372			413			467			896			1,673
Income from discontinued operations, after-tax	—			—			—			—			—			9			—			—			—			9
Net income (loss)	(81		)	438			216			323			421			381			413			467			896			1,682
Less: Unlock benefit (charge), before tax	(20		)	(13		)	18			13			53			(49		)	47			29			(2		)	80
Less: Net realized capital gains (losses) after DAC, excluded from core earnings, before tax [1]	(146		)	(13		)	51			(148		)	(135		)	(49		)	6			3			(256		)	(175		)
Less: Restructuring and other costs, before tax	—			—			—			—			(4		)	(4		)	(2		)	(10		)	—			(20		)
Less: Loss on extinguishment of debt, before tax	—			—			—			—			—			—			(21		)	—			—			(21		)
Less: (Loss) gain on reinsurance transactions, before tax [2]	(650		)	—			—			—			—			20			8			—			(650		)	28
Less: Income tax benefit (expense) [3][5] [6]	320			51			25			73			62			90			(14		)	(7		)	469			131
Less: Income from discontinued operations, after-tax	—			—			—			—			—			9			—			—			—			9
Core earnings	$	415		$	413		$	122		$	385		$	445		$	364		$	389		$	452		$	1,335		$	1,650

[1] The three months ended December 31, 2016 included a realized capital loss of $96, before tax, associated with the write-down of investments in solar energy partnerships made in the quarter that generated solar tax credits and other tax benefits of $113 included on the "income tax benefit (expense)" line in the net income (loss) to core earnings reconciliation. The three months ended December 31, 2016 and September 30, 2016 included estimated before tax capital losses on the pending sale of the Company's U.K. property and casualty run-off subsidiaries of $22 and $59, respectively. Net of tax, the pending sale resulted in an estimated after-tax loss of $11 and an estimated after-tax gain of $6 in the three months ended December 31, 2016 and September 30, 2016, respectively, for a total estimated after-tax loss of $5 from the transaction.

[2] The three months ended December 31, 2016 included a loss for premium paid to a reinsurer to cover the risk of adverse asbestos and environmental net reserve development.

[3] The three months ended December 31, 2016 included a federal income tax benefit of $227 related to the reinsurance premium paid for the asbestos and environmental cover, a benefit of $113 associated with investments in solar energy partnerships and, income tax expense of $47 associated with IRS audit adjustments.The three months ended December 31, 2016 and September 30, 2016 included an estimated federal income tax benefit on the pending sale of the Company's U.K. property and casualty run-off subsidiaries of $11 and $65, respectively.

[4] The three months ended September 30, 2015 and June 30, 2015, respectively, included an income tax provision of $12 and an income tax benefit of $48 due to uncertain tax positions.

[5] The three months ended June 30, 2016, March 31, 2016, December 31, 2015 and September 30, 2015 included federal income tax benefits of $53, $25, $34 and $60, respectively, from the reduction of the deferred tax valuation allowance on capital loss carryovers.

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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

OPERATING RESULTS BY SEGMENT

	THREE MONTHS ENDED																								YEAR ENDED
	Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Dec 31 2015			Sept 30 2015			Jun 30 2015			Mar 31 2015			Dec 31 2016			Dec 31 2015
Net income (loss):
Commercial Lines	$	267		$	272		$	240		$	228		$	293		$	211		$	259		$	240		$	1,007		$	1,003
Personal Lines	(18		)	29			(53		)	20			51			19			41			76			(22		)	187
P&C Other Operations	(423		)	31			(154		)	17			19			16			(111		)	23			(529		)	(53		)
Property & Casualty ("P&C")	(174		)	332			33			265			363			246			189			339			456			1,137
Group Benefits	63			62			55			50			37			42			56			52			230			187
Mutual Funds	17			21			20			20			20			22			22			22			78			86
Sub-total	$	(94	)	$	415		$	108		$	335		$	420		$	310		$	267		$	413		$	764		$	1,410
Talcott Resolution	45			78			104			17			28			74			217			111			244			430
Corporate	(32		)	(55		)	4			(29		)	(27		)	(3		)	(71		)	(57		)	(112		)	(158		)
Net income (loss)	$	(81	)	$	438		$	216		$	323		$	421		$	381		$	413		$	467		$	896		$	1,682
Core earnings (losses):
Commercial Lines	$	277		$	247		$	224		$	249		$	289		$	216		$	264		$	234		$	997		$	1,003
Personal Lines	(17		)	25			(55		)	23			51			17			42			75			(24		)	185
P&C Other Operations	15			19			(154		)	19			18			18			(113		)	20			(101		)	(57		)
P&C	$	275		$	291		$	15		$	291		$	358		$	251		$	193		$	329		$	872		$	1,131
Group Benefits	59			51			46			48			40			47			56			52			204			195
Mutual Funds	17			21			20			20			20			22			22			22			78			86
Sub-total	351			363			81			359			418			320			271			403			1,154			1,412
Talcott Resolution	111			104			91			77			83			107			171			111			383			472
Corporate	(47		)	(54		)	(50		)	(51		)	(56		)	(63		)	(53		)	(62		)	(202		)	(234		)
Core earnings	$	415		$	413		$	122		$	385		$	445		$	364		$	389		$	452		$	1,335		$	1,650

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATING BALANCE SHEETS

	PROPERTY & CASUALTY				GROUP BENEFITS						MUTUAL FUNDS				TALCOTT RESOLUTION				CORPORATE						CONSOLIDATED
	Dec 31 2016		Dec 31 2015		Dec 31 2016			Dec 31 2015			Dec 31 2016		Dec 31 2015		Dec 31 2016		Dec 31 2015		Dec 31 2016			Dec 31 2015			Dec 31 2016			Dec 31 2015
Investments
Fixed maturities, available-for-sale, at fair value	$	24,386	$	25,671	$	6,931		$	7,405		$	21	$	57	$	23,813	$	24,692	$	852		$	1,371		$	56,003		$	59,196
Fixed maturities, at fair value using the fair value option	102		233		109			116			—		—		82		154		—			—			293			503
Equity securities, available-for-sale, at fair value	794		497		10			35			—		—		151		459		142			130			1,097			1,121
Mortgage loans	2,015		1,917		871			789			—		—		2,811		2,918		—			—			5,697			5,624
Policy loans, at outstanding balance	—		—		1			1			—		—		1,443		1,446		—			—			1,444			1,447
Limited partnerships and other alternative investments	1,337		1,490		190			193			—		—		929		1,191		—			—			2,456			2,874
Other investments	103		86		4			5			—		—		295		212		1			7			403			310
Short-term investments	1,162		581		223			167			162		147		1,366		588		331			360			3,244			1,843
Total investments	$	29,899	$	30,475	$	8,339		$	8,711		$	183	$	204	$	30,890	$	31,660	$	1,326		$	1,868		$	70,637		$	72,918
Cash	298		128		25			14			5		1		554		305		—			—			882			448
Premiums receivable and agents’ balances	3,388		3,275		342			261			—		—		1		1		—			—			3,731			3,537
Reinsurance recoverables	2,373		2,515		574			596			—		—		20,364		20,078		—			—			23,311			23,189
DAC	591		590		42			35			12		11		1,066		1,180		—			—			1,711			1,816
Deferred income taxes	517		367		(111		)	(131		)	6		4		1,206		1,335		1,663			1,631			3,281			3,206
Goodwill	157		119		—			—			180		149		—		—		230			230			567			498
Property and equipment, net	859		835		54			55			—		1		69		74		9			9			991			974
Other assets	1,004		793		140			125			94		79		512		563		36			79			1,786			1,639
Assets held for sale [1]	870		—		—			—			—		—		—		—		—			—			870			—
Separate account assets [2]	—		—		—			—			—		—		115,665		120,123		—			—			115,665			120,123
Total assets	$	39,956	$	39,097	$	9,405		$	9,666		$	480	$	449	$	170,327	$	175,319	$	3,264		$	3,817		$	223,432		$	228,348
Unpaid losses and loss adjustment expenses	$	21,833	$	21,825	$	5,772		$	5,888		$	—	$	—	$	—	$	—	$	—		$	—		$	27,605		$	27,713
Reserves for future policy benefits	—		—		322			491			—		—		13,607		13,368		—			—			13,929			13,859
Other policyholder funds and benefits payable	—		—		602			495			—		—		30,574		31,175		—			—			31,176			31,670
Unearned premiums	5,350		5,233		42			43			—		—		107		109		—			—			5,499			5,385
Debt	—		—		—			—			—		—		142		143		4,910			5,216			5,052			5,359
Other liabilities	1,723		1,171		305			307			165		148		1,958		1,786		2,841			3,185			6,992			6,597
Liabilities held for sale [1]	611		—		—			—			—		—		—		—		—			—			611			—
Separate account liabilities	—		—		—			—			—		—		115,665		120,123		—			—			115,665			120,123
Total liabilities	$	29,517	$	28,229	$	7,043		$	7,224		$	165	$	148	$	162,053	$	166,704	$	7,751		$	8,401		$	206,529		$	210,706
Common equity, excluding AOCI	9,977		10,342		2,219			2,219			315		301		7,553		8,032		(2,824		)	(2,923		)	17,240			17,971
AOCI, after-tax	462		526		143			223			—		—		721		583		(1,663		)	(1,661		)	(337		)	(329		)
Total stockholders’ equity	10,439		10,868		2,362			2,442			315		301		8,274		8,615		(4,487		)	(4,584		)	16,903			17,642
Total liabilities and equity	$	39,956	$	39,097	$	9,405		$	9,666		$	480	$	449	$	170,327	$	175,319	$	3,264		$	3,817		$	223,432		$	228,348

[1] Related to the Company's U.K. property and casualty run-off subsidiaries.    

[2] Excludes Mutual Funds assets under management ("AUM") owned by the shareholders of those funds and not by the Company.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CAPITAL STRUCTURE

	Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Dec 31 2015			Sept 30 2015			Jun 30 2015			Mar 31 2015
DEBT
Short-term debt	$	416		$	690		$	690		$	690		$	275		$	167		$	167		$	167
Senior notes	3,553			3,552			3,551			3,550			3,984			4,259			4,258			4,553
Junior subordinated debentures	1,083			1,083			1,083			1,083			1,100			1,100			1,100			1,100
Total debt	$	5,052		$	5,325		$	5,324		$	5,323		$	5,359		$	5,526		$	5,525		$	5,820
STOCKHOLDERS’ EQUITY
Common stockholders' equity, excluding AOCI	$	17,240		$	17,671		$	17,659		$	17,858		$	17,971		$	18,064		$	18,039		$	17,927
AOCI	(337		)	987			900			254			(329		)	140			188			1,150
Total stockholders’ equity	$	16,903		$	18,658		$	18,559		$	18,112		$	17,642		$	18,204		$	18,227		$	19,077
CAPITALIZATION
Total capitalization, including AOCI, after-tax	$	21,955		$	23,983		$	23,883		$	23,435		$	23,001		$	23,730		$	23,752		$	24,897
Total capitalization, excluding AOCI, after-tax	$	22,292		$	22,996		$	22,983		$	23,181		$	23,330		$	23,590		$	23,564		$	23,747
DEBT TO CAPITALIZATION RATIOS
Total debt to capitalization, including AOCI	23.0		%	22.2		%	22.3		%	22.7		%	23.3		%	23.3		%	23.3		%	23.4		%
Total debt to capitalization, excluding AOCI	22.7		%	23.2		%	23.2		%	23.0		%	23.0		%	23.4		%	23.4		%	24.5		%
Total rating agency adjusted debt to capitalization [1] [2]	25.8		%	25.8		%	25.9		%	26.4		%	27.0		%	26.9		%	26.9		%	26.9		%
ANNUAL FIXED CHARGE COVERAGE RATIOS
Total earnings to total fixed charges (after interest credited to contractholders) [3]	1.8:1												2.9:1
Total earnings to total fixed charges (before interest credited to contractholders) [4]	3.2:1												6.1:1

[1] 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 $1.2 billion, $1.5 billion, $1.5 billion, $1.5 billion, $1.5 billion, $1.6 billion, $1.6 billion, $1.6 billion for the three months ended December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015, respectively.

[2] Reflects 25% equity credit for the Company's outstanding junior subordinated debentures.

[3] Calculated as total earnings divided by total fixed charges. Total earnings represent income from continuing operations before income taxes, total fixed charges and interest credited to contractholders, less undistributed earnings from limited partnerships and other alternative investments. Total fixed charges include: interest expense, rent expense, capitalized interest, amortization of debt issuance costs and interest credited to contractholders. Interest credited to contractholders includes interest credited on general account assets and interest credited on consumer notes.

[4] Calculated as total earnings divided by total fixed charges. Total earnings represent income from continuing operations before income taxes and total fixed charges, less undistributed earnings from limited partnerships and other alternative investments. Total fixed charges include: interest expense, rent expense, capitalized interest and amortization of debt issuance costs.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

STATUTORY CAPITAL TO GAAP STOCKHOLDERS’ EQUITY RECONCILIATION

DECEMBER 31, 2016

	P&C			GROUP BENEFITS			TALCOTT RESOLUTION
U.S. statutory net income [1]	$	304		$	210		$	347
U.S. statutory capital [2]	$	8,261		$	1,624		$	4,398
U.S. GAAP adjustments:
DAC	591			42			1,066
Non-admitted deferred tax assets [3]	357			29			1,496
Deferred taxes [4]	(1,010		)	(297		)	(786		)
Goodwill	104			—			—
Non-admitted assets other than deferred taxes	677			88			21
Asset valuation and interest maintenance reserve	—			197			551
Benefit reserves	(34		)	220			158
Unrealized gains on investments	660			214			1,023
Other, net	833			245			347
U.S. GAAP stockholders’ equity	$	10,439		$	2,362		$	8,274

[1] Statutory net income is for the year ended December 31, 2016.

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

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

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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

	AS OF
	Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Dec 31 2015			Sept 30 2015			Jun 30 2015			Mar 31 2015
Fixed maturities net unrealized gain	$	1,226		$	2,418		$	2,406		$	1,780		$	1,281		$	1,571		$	1,636		$	2,565
Equities net unrealized gain (loss)	50			41			31			21			(2		)	(8		)	21			13
OTTI losses recognized in AOCI	(3		)	(5		)	(10		)	(15		)	(7		)	(4		)	(7		)	(8		)
Net gain on cash flow hedging instruments	76			172			200			184			130			170			122			177
Total net unrealized gain	$	1,349		$	2,626		$	2,627		$	1,970		$	1,402		$	1,729		$	1,772		$	2,747
Foreign currency translation adjustments	6			10			(68		)	(49		)	(55		)	(38		)	(24		)	(28		)
Pension and other postretirement adjustment	(1,692		)	(1,649		)	(1,659		)	(1,667		)	(1,676		)	(1,551		)	(1,560		)	(1,569		)
Total AOCI	$	(337	)	$	987		$	900		$	254		$	(329	)	$	140		$	188		$	1,150

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PROPERTY & CASUALTY

UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES RESERVE ROLLFORWARD

	THREE MONTHS ENDED DEC 31, 2016
	Commercial Lines		Personal Lines		P&C Other Operations		Total P&C
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	$	17,100	$	1,975	$	2,540	$	21,615
Reinsurance and other recoverables	2,299		18		377		2,694
Beginning liabilities for unpaid losses and loss adjustment expenses, net	14,801		1,957		2,163		18,921
Provision for unpaid losses and loss adjustment expenses
Current accident year before catastrophes	946		768		—		1,714
Current accident year catastrophes	33		28		—		61
Prior accident year development	20		20		8		48
Total provision for unpaid losses and loss adjustment expenses	999		816		8		1,823
Less: payments	887		704		96		1,687
Ending liabilities for unpaid losses and loss adjustment expenses, net	14,913		2,069		2,075		19,057
Reinsurance and other recoverables	2,325		25		426		2,776
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	17,238	$	2,094	$	2,501	$	21,833

	YEAR ENDED DEC 31, 2016
	Commercial Lines		Personal Lines		P&C Other Operations [1]		Total P&C
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	$	16,559	$	1,845	$	3,421	$	21,825
Reinsurance and other recoverables	2,293		19		570		2,882
Beginning liabilities for unpaid losses and loss adjustment expenses, net	14,266		1,826		2,851		18,943
Add: Maxum acquisition [1]	122		—		—		122
Provision for unpaid losses and loss adjustment expenses
Current accident year before catastrophes	3,766		2,808		—		6,574
Current accident year catastrophes	200		216		—		416
Prior accident year development	28		151		278		457
Total provision for unpaid losses and loss adjustment expenses	3,994		3,175		278		7,447
Less: payments	3,469		2,932		567		6,968
Less: net reserves transferred to liabilities held for sale [2]	—		—		487		487
Ending liabilities for unpaid losses and loss adjustment expenses, net	14,913		2,069		2,075		19,057
Reinsurance and other recoverables	2,325		25		426		2,776
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	17,238	$	2,094	$	2,501	$	21,833

[1] Represents Maxum reserves, net of reinsurance as of the acquisition date.

[2] Represents liabilities to be transferred to the buyer in connection with the pending sale of the Company's U.K. property and casualty run-off subsidiaries.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PROPERTY & CASUALTY

INCOME STATEMENTS

	THREE MONTHS ENDED																								YEAR ENDED
	Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Dec 31 2015			Sept 30 2015			Jun 30 2015			Mar 31 2015			Dec 31 2016			Dec 31 2015
Written premiums	$	2,555		$	2,673		$	2,661		$	2,679		$	2,576		$	2,674		$	2,667		$	2,661		$	10,568		$	10,578
Change in unearned premium reserve	(113		)	16			35			81			(91		)	49			78			126			19			162
Earned premiums	2,668			2,657			2,626			2,598			2,667			2,625			2,589			2,535			10,549			10,416
Losses and loss adjustment expenses
Current accident year before catastrophes	1,714			1,688			1,627			1,545			1,610			1,634			1,525			1,546			6,574			6,315
Current accident year catastrophes	61			80			184			91			34			76			139			83			416			332
Prior accident year development [1]	48			25			351			33			(5		)	37			220			(2		)	457			250
Total losses and loss adjustment expenses	1,823			1,793			2,162			1,669			1,639			1,747			1,884			1,627			7,447			6,897
Amortization of DAC	330			329			331			331			330			329			327			324			1,321			1,310
Underwriting expenses	436			437			445			456			469			474			446			449			1,774			1,838
Dividends to policyholders	3			4			4			4			4			4			4			5			15			17
Underwriting gain (loss) *	76			94			(316		)	138			225			71			(72		)	130			(8		)	354
Net investment income	310			305			292			272			270			267			307			327			1,179			1,171
Net realized capital gains (losses) [2]	(46		)	(3		)	35			(41		)	10			(16		)	(6		)	13			(55		)	1
Loss on reinsurance transaction [3]	650			—			—			—			—			—			—			—			650			—
Net servicing and other income	6			9			5			7			7			8			27			6			27			48
Income from continuing operations before income taxes	(304		)	405			16			376			512			330			256			476			493			1,574
Income tax expense (benefit) [4] [5]	(130		)	73			(17		)	111			149			91			67			137			37			444
Income from continuing operations, after-tax	(174		)	332			33			265			363			239			189			339			456			1,130
Income from discontinued operations, after-tax	—			—			—			—			—			7			—			—			—			7
Net income (loss)	(174		)	332			33			265			363			246			189			339			456			1,137
Less: Net realized capital gains (losses) after DAC, excluded from core earnings, before tax	(45		)	(3		)	35			(40		)	6			(15		)	(7		)	14			(53		)	(2		)
Less: Loss on reinsurance transaction, before tax [3]	(650		)	—			—			—			—			—			—			—			(650		)	—
Less: Income tax benefit (expense) on items not included in core earnings [4] [5]	246			44			(17		)	14			(1		)	3			3			(4		)	287			1
Less: Income from discontinued operations, after-tax	—			—			—			—			—			7			—			—			—			7
Core earnings	$	275		$	291		$	15		$	291		$	358		$	251		$	193		$	329		$	872		$	1,131
ROE
Net income (net income last 12 months to stockholders' equity including AOCI)	4.3		%	10.4		%	9.3		%	11.1		%	12.5		%	12.4		%	13.5		%	11.5		%
Less: Net realized capital gains (losses) after DAC, excluded from core earnings, before tax	(0.6		)%	—		%	(0.2		)%	(0.6		)%	—		%	—		%	0.5		%	0.3		%
Less: Loss on reinsurance transaction, before tax [3]	(7.9		)%	—		%	—		%	—		%	—		%	—		%	—		%	—		%
Less: Income tax benefit (expense) on items not included in core earnings [4] [5]	3.5		%	0.5		%	—		%	0.2		%	—		%	—		%	(0.2		)%	(0.1		)%
Less: Income from discontinued operations, after-tax	—		%	—		%	0.1		%	0.1		%	0.1		%	0.2		%	0.1		%	0.1		%
Less: Impact of AOCI, excluded from Core ROE	(0.6		)%	(1.1		)%	(0.9		)%	(1.3		)%	(1.1		)%	(1.2		)%	(1.3		)%	(1.2		)%
Core earnings (core earnings last 12 months to stockholders' equity excluding AOCI)	9.9		%	11.0		%	10.3		%	12.7		%	13.5		%	13.4		%	14.4		%	12.4		%

[1] The three months ended June 30, 2016 and 2015 included unfavorable reserve development of $197 and $146, respectively, related to asbestos reserves, and $71 and $52, respectively, related to environmental reserves.

[2] The three months ended December 31, 2016 and September 30, 2016 included estimated before tax capital losses on the pending sale of the Company's U.K. property and casualty run-off subsidiaries of $22 and $59, respectively. Net of tax, the pending sale resulted in an estimated after-tax loss of $11 and an estimated after-tax gain of $6 in the three months ended December 31, 2016 and September 30, 2016, respectively, for a total estimated after-tax loss of $5 from the transaction.

[3] The three months ended December 31, 2016 included a loss for premium paid to a reinsurer to cover the risk of adverse asbestos and environmental net reserve development.

[4] The three months ended December 31, 2016 included a federal income tax benefit of $227 related to the reinsurance premium paid for the asbestos and environmental adverse development cover.

[5] The three months ended December 31, 2016 and September 30, 2016 included an estimated federal income tax benefit on the pending sale of the Company's U.K. property and casualty run-off subsidiaries of $11 and $65, respectively.

* Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP).

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PROPERTY & CASUALTY

UNDERWRITING RATIOS AND RESULTS

	THREE MONTHS ENDED																				YEAR ENDED
	Dec 31 2016		Sept 30 2016		Jun 30 2016			Mar 31 2016		Dec 31 2015			Sept 30 2015		Jun 30 2015			Mar 31 2015			Dec 31 2016			Dec 31 2015
UNDERWRITING GAIN (LOSS)	$	76	$	94	$	(316	)	$	138	$	225		$	71	$	(72	)	$	130		$	(8	)	$	354
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes	64.2		63.5		62.0			59.5		60.4			62.2		58.9			61.0			62.3			60.6
Current accident year catastrophes	2.3		3.0		7.0			3.5		1.3			2.9		5.4			3.3			3.9			3.2
Prior accident year development [1] [2]	1.8		0.9		13.4			1.3		(0.2		)	1.4		8.5			(0.1		)	4.3			2.4
Total losses and loss adjustment expenses	68.3		67.5		82.3			64.2		61.5			66.6		72.8			64.2			70.6			66.2
Expenses	28.7		28.8		29.6			30.3		30.0			30.6		29.9			30.5			29.3			30.2
Policyholder dividends	0.1		0.2		0.2			0.2		0.1			0.2		0.2			0.2			0.1			0.2
Combined ratio	97.2		96.5		112.0			94.7		91.6			97.3		102.8			94.9			100.1			96.6
Current accident year catastrophes and prior accident year development	4.1		3.9		20.4			4.8		1.1			4.3		13.9			3.2			8.2			5.6
Underlying combined ratio *	93.1		92.5		91.7			89.9		90.5			93.0		88.9			91.7			91.8			91.0

[1] The three months ended June 30, 2016 and 2015 included 10.2 point and 7.6 point, respectively, of unfavorable impact related to asbestos and environmental prior accident year loss reserve development.

[2] The following table summarizes unfavorable (favorable) prior accident year development. For additional information see the Commercial Lines, Personal Lines and P&C Other Operations underwriting results presented in this document.

	THREE MONTHS ENDED																								YEAR ENDED
	Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Dec 31 2015			Sept 30 2015			Jun 30 2015			Mar 31 2015			Dec 31 2016			Dec 31 2015
Auto liability - Commercial Lines	$	38		$	18		$	(8	)	$	9		$	2		$	30		$	5		$	25		$	57		$	62
Auto liability - Personal Lines	20			—			75			65			(1		)	(7		)	—			—			160			(8		)
Homeowners	(6		)	1			1			(6		)	—			2			6			1			(10		)	9
Professional and general liability	(4		)	(1		)	34			(1		)	2			3			(3		)	(30		)	28			(28		)
Package business	15			(2		)	7			45			20			3			4			1			65			28
Net asbestos reserves	—			—			197			—			—			—			146			—			197			146
Net environmental reserves	—			—			71			—			—			—			52			3			71			55
Workers’ compensation	(32		)	(4		)	(4		)	(79		)	(37		)	—			—			—			(119		)	(37		)
Workers' compensation discount accretion	7			7			7			7			7			7			7			8			28			29
Catastrophes	—			(2		)	2			(7		)	(1		)	1			—			(18		)	(7		)	(18		)
Uncollectible reinsurance	—			—			(30		)	—			—			—			—			—			(30		)	—
Other reserve re-estimates, net	10			8			(1		)	—			3			(2		)	3			8			17			12
Total prior accident year development	$	48		$	25		$	351		$	33		$	(5	)	$	37		$	220		$	(2	)	$	457		$	250

* Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP).

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

INCOME STATEMENTS

	THREE MONTHS ENDED																								YEAR ENDED
	Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Dec 31 2015			Sept 30 2015			Jun 30 2015			Mar 31 2015			Dec 31 2016			Dec 31 2015
Written premiums	$	1,664		$	1,673		$	1,669		$	1,726		$	1,609		$	1,639		$	1,655		$	1,722		$	6,732		$	6,625
Change in unearned premium reserve	(37		)	(4		)	19			103			(49		)	(8		)	32			139			81			114
Earned premiums	1,701			1,677			1,650			1,623			1,658			1,647			1,623			1,583			6,651			6,511
Losses and loss adjustment expenses
Current accident year before catastrophes	946			969			938			913			923			952			909			928			3,766			3,712
Current accident year catastrophes	33			43			80			44			13			8			42			58			200			121
Prior accident year development [1]	20			22			6			(20		)	(16		)	50			21			(2		)	28			53
Total losses and loss adjustment expenses	999			1,034			1,024			937			920			1,010			972			984			3,994			3,886
Amortization of DAC	246			243			242			242			241			239			237			234			973			951
Underwriting expenses	305			293			298			295			295			304			284			295			1,191			1,178
Dividends to policyholders	3			4			4			4			4			4			4			5			15			17
Underwriting gain	148			103			82			145			198			90			126			65			478			479
Net servicing income	5			8			5			4			6			6			4			4			22			20
Net investment income	243			239			226			209			206			208			239			257			917			910
Net realized capital gains (losses)	(18		)	39			25			(33		)	11			(18		)	(7		)	8			13			(6		)
Other income (expenses)	1			(3		)	—			1			(2		)	1			2			1			(1		)	2
Income from continuing operations before income taxes	379			386			338			326			419			287			364			335			1,429			1,405
Income tax expense	112			114			98			98			126			83			105			95			422			409
Income from continuing operations, after-tax	267			272			240			228			293			204			259			240			1,007			996
Income from discontinued operations, after-tax	—			—			—			—			—			7			—			—			—			7
Net income	267			272			240			228			293			211			259			240			1,007			1,003
Less: Net realized capital gains (losses) after DAC, excluded from core earnings, before tax	(17		)	39			25			(32		)	6			(16		)	(8		)	9			15			(9		)
Less: Income tax benefit (expense)	7			(14		)	(9		)	11			(2		)	4			3			(3		)	(5		)	2
Less: Income from discontinued operations, after-tax	—			—			—			—			—			7			—			—			—			7
Core earnings	$	277		$	247		$	224		$	249		$	289		$	216		$	264		$	234		$	997		$	1,003

[1] For further information, see Commercial Lines Income Statements (continued), page 12.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

INCOME STATEMENTS (CONTINUED)

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

	THREE MONTHS ENDED																								YEAR ENDED
	Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Dec 31 2015			Sept 30 2015			Jun 30 2015			Mar 31 2015			Dec 31 2016			Dec 31 2015
Auto liability	$	38		$	18		$	(8	)	$	9		$	2		$	30		$	5		$	25		$	57		$	62
Professional liability	(2		)	(2		)	—			(33		)	(13		)	(6		)	—			(17		)	(37		)	(36		)
Package business	15			(2		)	7			45			20			3			4			1			65			28
General liability	(2		)	1			34			32			15			9			(3		)	(13		)	65			8
Workers’ compensation	(32		)	(4		)	(4		)	(79		)	(37		)	—			—			—			(119		)	(37		)
Workers' compensation discount accretion	7			7			7			7			7			7			7			8			28			29
Catastrophes	—			(3		)	1			(2		)	1			1			4			(6		)	(4		)	—
Uncollectible reinsurance	—			—			(30		)	—			—			—			—			—			(30		)	—
Other reserve re-estimates, net	(4		)	7			(1		)	1			(11		)	6			4			—			3			(1		)
Total prior accident year development	$	20		$	22		$	6		$	(20	)	$	(16	)	$	50		$	21		$	(2	)	$	28		$	53

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

UNDERWRITING RATIOS

	THREE MONTHS ENDED																			YEAR ENDED
	Dec 31 2016		Sept 30 2016		Jun 30 2016		Mar 31 2016			Dec 31 2015			Sept 30 2015		Jun 30 2015		Mar 31 2015			Dec 31 2016		Dec 31 2015
UNDERWRITING GAIN	$	148	$	103	$	82	$	145		$	198		$	90	$	126	$	65		$	478	$	479
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes	55.6		57.8		56.8		56.3			55.7			57.8		56.0		58.6			56.6		57.0
Current accident year catastrophes	1.9		2.6		4.8		2.7			0.8			0.5		2.6		3.7			3.0		1.9
Prior accident year development	1.2		1.3		0.4		(1.2		)	(1.0		)	3.0		1.3		(0.1		)	0.4		0.8
Total losses and loss adjustment expenses	58.7		61.7		62.1		57.7			55.5			61.3		59.9		62.2			60.1		59.7
Expenses	32.4		32.0		32.7		33.1			32.3			33.0		32.1		33.4			32.5		32.7
Policyholder dividends	0.2		0.2		0.2		0.2			0.2			0.2		0.2		0.3			0.2		0.3
Combined ratio	91.3		93.9		95.0		91.1			88.1			94.5		92.2		95.9			92.8		92.6
Current accident year catastrophes and prior accident year development	3.1		3.9		5.2		1.5			(0.2		)	3.5		3.9		3.6			3.4		2.7
Underlying combined ratio	88.2		90.0		89.8		89.6			88.2			91.0		88.4		92.4			89.4		90.0
COMBINED RATIOS BY LINE OF BUSINESS
SMALL COMMERCIAL
Combined ratio	90.5		89.0		92.2		89.4			85.3			88.0		89.2		93.9			90.3		89.0
Combined ratio before catastrophes	88.8		87.6		87.3		86.7			84.5			87.5		86.0		90.5			87.6		87.1
Underlying combined ratio	86.0		86.8		86.9		86.7			85.1			86.8		85.1		89.6			86.6		86.6
MIDDLE MARKET
Combined ratio	92.0		99.4		99.8		98.3			93.3			102.5		94.5		98.9			97.4		97.3
Combined ratio before catastrophes	88.9		94.9		93.1		94.9			91.9			101.5		91.1		94.6			92.9		94.8
Underlying combined ratio	88.9		93.1		91.9		92.0			89.0			93.8		89.3		93.7			91.5		91.4
SPECIALTY COMMERCIAL
Combined ratio	88.8		94.0		92.8		76.5			83.9			81.5		100.4		94.5			88.0		89.9
Combined ratio before catastrophes	88.8		93.5		92.7		76.5			83.9			81.5		100.4		94.5			87.9		89.9
Underlying combined ratio	94.8		93.7		95.4		94.3			98.1			99.1		98.8		99.1			94.5		98.8

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

SUPPLEMENTAL DATA

	THREE MONTHS ENDED																								YEAR ENDED
	Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Dec 31 2015			Sept 30 2015			Jun 30 2015			Mar 31 2015			Dec 31 2016			Dec 31 2015
WRITTEN PREMIUMS
Small Commercial	$	846		$	866		$	883		$	926		$	793		$	822		$	867		$	906		$	3,521		$	3,388
Middle Market	607			590			578			568			603			594			578			589			2,343			2,364
Specialty Commercial	200			207			197			222			204			215			200			219			826			838
National Accounts	81			89			79			101			93			95			82			100			350			370
Financial Products	62			62			59			60			62			64			60			61			243			247
Bond	50			51			48			44			46			50			49			46			193			191
Other Specialty	7			5			11			17			3			6			9			12			40			30
Other	11			10			11			10			9			8			10			8			42			35
Total	$	1,664		$	1,673		$	1,669		$	1,726		$	1,609		$	1,639		$	1,655		$	1,722		$	6,732		$	6,625
EARNED PREMIUMS
Small Commercial	$	894		$	880		$	854		$	839		$	844		$	839		$	833		$	810		$	3,467		$	3,326
Middle Market	590			586			584			574			600			590			583			566			2,334			2,339
Specialty Commercial	207			201			201			199			208			208			198			198			808			812
National Accounts	87			82			85			85			92			88			82			83			339			345
Financial Products	61			60			62			61			63			63			63			61			244			250
Bond	48			49			46			45			47			48			47			46			188			188
Other Specialty	11			10			8			8			6			9			6			8			37			29
Other	10			10			11			11			6			10			9			9			42			34
Total	$	1,701		$	1,677		$	1,650		$	1,623		$	1,658		$	1,647		$	1,623		$	1,583		$	6,651		$	6,511
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
New Business Premium
Small Commercial	$	145		$	146		$	139		$	146		$	133		$	131		$	141		$	140		$	576		$	545
Middle Market	$	133		$	99		$	124		$	103		$	114		$	117		$	119		$	124		$	459		$	474
Renewal Price Increases [1]
Standard Commercial Lines - Written	2		%	2		%	2		%	2		%	2		%	2		%	2		%	3		%	2		%	2		%
Standard Commercial Lines - Earned	2		%	2		%	2		%	2		%	3		%	3		%	4		%	5		%	2		%	4		%
Policy Count Retention [1]
Small Commercial [2]	85		%	85		%	84		%	84		%	85		%	84		%	83		%	85		%	84		%	84		%
Middle Market	76		%	76		%	75		%	74		%	81		%	81		%	81		%	81		%	75		%	81		%
Middle Market - normalized [2]	80		%	80		%	79		%	79		%
Policies in Force (in thousands)
Small Commercial	1,280			1,279			1,253			1,245			1,254			1,230			1,239			1,211
Middle Market [1]	66			66			67			69			71			71			72			72

[1] Excludes Maxum, Middle Market specialty programs and livestock lines of business.

[2] Normalized retention rate for the effect of including certain low premium policies transferred from Middle Market to Small Commercial. The transfer did not have a significant impact on policy count retention in Small Commercial.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

INCOME STATEMENTS

	THREE MONTHS ENDED																								YEAR ENDED
	Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Dec 31 2015			Sept 30 2015			Jun 30 2015			Mar 31 2015			Dec 31 2016			Dec 31 2015
Written premiums	$	892		$	1,000		$	992		$	953		$	936		$	1,034		$	1,009		$	939		$	3,837		$	3,918
Change in unearned premium reserve	(75		)	20			16			(22		)	(42		)	57			43			(13		)	(61		)	45
Earned premiums	967			980			976			975			978			977			966			952			3,898			3,873
Losses and loss adjustment expenses
Current accident year before catastrophes	768			719			689			632			662			682			616			618			2,808			2,578
Current accident year catastrophes	28			37			104			47			21			68			97			25			216			211
Prior accident year development [1]	20			3			76			52			(3		)	(14		)	—			(4		)	151			(21		)
Total losses and loss adjustment expenses	816			759			869			731			680			736			713			639			3,175			2,768
Amortization of DAC	84			86			89			89			89			90			90			90			348			359
Underwriting expenses	132			137			141			154			163			162			155			148			564			628
Underwriting gain (loss)	(65		)	(2		)	(123		)	1			46			(11		)	8			75			(189		)	118
Net servicing income	—			—			—			—			1			—			2			1			—			4
Net investment income	36			35			33			31			30			29			34			35			135			128
Net realized capital gains (losses)	(2		)	5			4			(5		)	—			4			(1		)	1			2			4
Other income (expense)	(2		)	2			—			—			(1		)	(1		)	18			(1		)	—			15
Income (loss) before income taxes	(33		)	40			(86		)	27			76			21			61			111			(52		)	269
Income tax expense (benefit)	(15		)	11			(33		)	7			25			2			20			35			(30		)	82
Net income (loss)	(18		)	29			(53		)	20			51			19			41			76			(22		)	187
Less: Net realized capital gains (losses), after DAC, excluded from core earnings, before tax	(2		)	5			4			(5		)	1			3			(1		)	1			2			4
Less: Income tax benefit (expense)	1			(1		)	(2		)	2			(1		)	(1		)	—			—			—			(2		)
Core earnings (losses)	$	(17	)	$	25		$	(55	)	$	23		$	51		$	17		$	42		$	75		$	(24	)	$	185

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

	THREE MONTHS ENDED																							YEAR ENDED
	Dec 31 2016			Sept 30 2016		Jun 30 2016			Mar 31 2016			Dec 31 2015			Sept 30 2015			Jun 30 2015			Mar 31 2015			Dec 31 2016			Dec 31 2015
Auto liability [a]	$	20		$	—	$	75		$	65		$	(1	)	$	(7	)	$	—		$	—		$	160		$	(8	)
Homeowners	(6		)	1		1			(6		)	—			2			6			1			(10		)	9
Catastrophes	—			1		1			(5		)	(2		)	—			(4		)	(12		)	(3		)	(18		)
Other reserve re-estimates, net	6			1		(1		)	(2		)	—			(9		)	(2		)	7			4			(4		)
Total prior accident year development	$	20		$	3	$	76		$	52		$	(3	)	$	(14	)	$	—		$	(4	)	$	151		$	(21	)

[a] For the three months ended June 30, 2016 unfavorable reserve development was primarily due to higher than expected emerged severity of bodily injury claims and higher than expected emerged frequency of uninsured and under-insured motorist claims related to accident year 2015. For the three months ended March 31, 2016 unfavorable reserve development was primarily due to higher than expected emerged bodily injury severity for accident years 2014 and 2015 and, for the third and fourth accident quarters of 2015, an increase in bodily injury frequency.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

UNDERWRITING RATIOS

	THREE MONTHS ENDED																						YEAR ENDED
	Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016		Dec 31 2015			Sept 30 2015			Jun 30 2015		Mar 31 2015			Dec 31 2016			Dec 31 2015
UNDERWRITING GAIN (LOSS)	$	(65	)	$	(2	)	$	(123	)	$	1	$	46		$	(11	)	$	8	$	75		$	(189	)	$	118
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes	79.4			73.4			70.6			64.8		67.7			69.8			63.8		64.9			72.0			66.6
Current accident year catastrophes	2.9			3.8			10.7			4.8		2.1			7.0			10.0		2.6			5.5			5.4
Prior accident year development	2.1			0.3			7.8			5.3		(0.3		)	(1.4		)	—		(0.4		)	3.9			(0.5		)
Total losses and loss adjustment expenses	84.4			77.4			89.0			75.0		69.5			75.3			73.8		67.1			81.5			71.5
Expenses	22.3			22.8			23.6			24.9		25.8			25.8			25.4		25.0			23.4			25.5
Combined ratio	106.7			100.2			112.6			99.9		95.3			101.1			99.2		92.1			104.8			97.0
Current accident year catastrophes and prior accident year development	5.0			4.1			18.5			10.1		1.8			5.6			10.0		2.2			9.4			4.9
Underlying combined ratio	101.8			96.1			94.2			89.7		93.5			95.6			89.1		89.9			95.4			92.0
PRODUCT
Automobile
Combined ratio	118.1			104.8			117.0			106.6		103.5			100.4			98.3		95.4			111.6			99.4
Underlying combined ratio	113.6			103.1			102.7			96.2		102.9			101.6			96.6		94.6			103.9			99.0
Homeowners
Combined ratio	80.9			89.2			102.4			84.7		76.9			105.5			100.7		85.1			89.3			92.1
Underlying combined ratio	74.7			79.6			74.2			75.1		72.4			82.4			72.6		79.7			75.9			76.8

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

SUPPLEMENTAL DATA

	THREE MONTHS ENDED																								YEAR ENDED
	Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Dec 31 2015			Sept 30 2015			Jun 30 2015			Mar 31 2015			Dec 31 2016			Dec 31 2015
DISTRIBUTION
WRITTEN PREMIUMS
AARP Direct	$	665		$	762		$	752		$	711		$	675		$	762		$	744		$	677		$	2,890		$	2,858
AARP Agency	95			95			92			92			98			95			89			87			374			369
Other Agency	121			131			135			136			151			163			163			161			523			638
Other	11			12			13			14			12			14			13			14			50			53
Total	$	892		$	1,000		$	992		$	953		$	936		$	1,034		$	1,009		$	939		$	3,837		$	3,918
EARNED PREMIUMS
AARP Direct	$	728		$	731		$	723		$	715		$	712		$	709		$	698		$	685		$	2,897		$	2,804
AARP Agency	95			94			94			92			92			88			87			81			375			348
Other Agency	133			140			147			153			160			165			169			173			573			667
Other	11			15			12			15			14			15			12			13			53			54
Total	$	967		$	980		$	976		$	975		$	978		$	977		$	966		$	952		$	3,898		$	3,873
PRODUCT LINE
WRITTEN PREMIUMS
Automobile	$	627		$	691		$	686		$	690		$	655		$	707		$	688		$	671		$	2,694		$	2,721
Homeowners	265			309			306			263			281			327			321			268			1,143			1,197
Total	$	892		$	1,000		$	992		$	953		$	936		$	1,034		$	1,009		$	939		$	3,837		$	3,918
EARNED PREMIUMS
Automobile	$	676		$	686		$	680		$	678		$	677		$	674		$	665		$	655		$	2,720		$	2,671
Homeowners	291			294			296			297			301			303			301			297			1,178			1,202
Total	$	967		$	980		$	976		$	975		$	978		$	977		$	966		$	952		$	3,898		$	3,873
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
New Business Premium
Automobile	$	48		$	70		$	83		$	110		$	114		$	111		$	96		$	101		$	311		$	422
Homeowners	$	12		$	18		$	21		$	23		$	25		$	29		$	29		$	27		$	74		$	110
Renewal Written Price Increases
Automobile	9		%	7		%	7		%	7		%	6		%	6		%	6		%	6		%	7		%	6		%
Homeowners	10		%	10		%	9		%	9		%	8		%	8		%	8		%	8		%	10		%	8		%
Renewal Earned Price Increases
Automobile	7		%	7		%	6		%	6		%	6		%	6		%	6		%	6		%	7		%	6		%
Homeowners	9		%	9		%	9		%	8		%	8		%	8		%	8		%	8		%	9		%	8		%
Policy Count Retention
Automobile	83		%	84		%	84		%	84		%	84		%	84		%	84		%	84		%	84		%	84		%
Homeowners	83		%	84		%	84		%	84		%	85		%	85		%	86		%	85		%	84		%	85		%
Premium Retention
Automobile	89		%	88		%	88		%	87		%	87		%	87		%	87		%	87		%	88		%	87		%
Homeowners	90		%	89		%	89		%	90		%	90		%	90		%	90		%	90		%	89		%	90		%
Policies in Force (in thousands)
Automobile	1,965			2,016			2,053			2,073			2,062			2,052			2,049			2,053
Homeowners	1,176			1,208			1,239			1,262			1,272			1,284			1,296			1,305

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

SUPPLEMENTAL DATA - AUTOMOBILE

	THREE MONTHS ENDED																								YEAR ENDED
	Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Dec 31 2015			Sept 30 2015			Jun 30 2015			Mar 31 2015			Dec 31 2016			Dec 31 2015
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
New Business Premium by Distribution
AARP Direct	$	35		$	52		$	62		$	84		$	82		$	81		$	68		$	67		$	233		$	298
AARP Agency	9			12			14			17			19			17			16			19			52			71
Other Agency	4			6			6			8			11			11			10			13			24			45
Other	—			—			1			1			2			2			2			2			2			8
Total	$	48		$	70		$	83		$	110		$	114		$	111		$	96		$	101		$	311		$	422
Policy Count Retention by Distribution
AARP Direct	85		%	86		%	86		%	86		%	86		%	86		%	86		%	85		%	86		%	86		%
AARP Agency	79		%	78		%	78		%	78		%	77		%	78		%	80		%	81		%	78		%	79		%
Other Agency [1]	79		%	78		%	78		%	80		%	80		%	79		%	81		%	82		%	79		%	80		%
Total	83		%	84		%	84		%	84		%	84		%	84		%	84		%	84		%	84		%	84		%

[1] Includes policies that are available to renew on either a six or twelve month policy term. The policy retention represents the percentage of policies that renewed since the last policy term and is not annualized.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

P&C OTHER OPERATIONS

INCOME STATEMENTS

	THREE MONTHS ENDED																								YEAR ENDED
	Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Dec 31 2015			Sept 30 2015			Jun 30 2015			Mar 31 2015			Dec 31 2016			Dec 31 2015
Written premiums	$	(1	)	$	—		$	—		$	—		$	31		$	1		$	3		$	—		$	(1	)	$	35
Change in unearned premium reserve	(1		)	—			—			—			—			—			3			—			(1		)	3
Earned premiums	—			—			—			—			31			1			—			—			—			32
Losses and loss adjustment expenses
Current accident year	—			—			—			—			25			—			—			—			—			25
Prior accident year development [1]	8			—			269			1			14			1			199			4			278			218
Total losses and loss adjustment expenses	8			—			269			1			39			1			199			4			278			243
Underwriting expenses	(1		)	7			6			7			11			8			7			6			19			32
Underwriting loss	(7		)	(7		)	(275		)	(8		)	(19		)	(8		)	$	(206	)	$	(10	)	(297		)	(243		)
Net investment income	31			31			33			32			34			30			34			35			127			133
Net realized capital gains (losses) [2]	(26		)	(47		)	6			(3		)	(1		)	(2		)	2			4			(70		)	3
Loss on reinsurance transaction [3]	650			—			—			—			—			—			—			—			650			—
Other income	2			2			—			2			3			2			1			1			6			7
Income (loss) before income taxes	(650		)	(21		)	(236		)	23			17			22			(169		)	30			(884		)	(100		)
Income tax expense (benefit) [4] [5]	(227		)	(52		)	(82		)	6			(2		)	6			(58		)	7			(355		)	(47		)
Net income (loss)	(423		)	31			(154		)	17			19			16			(111		)	23			(529		)	(53		)
Less: Net realized capital gains (losses) after DAC, excluded from core earnings, before tax [2]	(26		)	(47		)	6			(3		)	(1		)	(2		)	2			4			(70		)	3
Less: Loss on reinsurance transaction, before tax [3]	(650		)	—			—			—			—			—			—			—			(650		)	—
Less: Income tax benefit (expense) [4] [5] [6]	238			59			(6		)	1			2			—			—			(1		)	292			1
Core earnings (losses)	$	15		$	19		$	(154	)	$	19		$	18		$	18		$	(113	)	$	20		$	(101	)	$	(57	)

[1] The three months ended June 30, 2016 and 2015 included unfavorable reserve development of $197 and $146, respectively, related to asbestos reserves, and $71 and $52, respectively, related to environmental reserves.

[2] The three months ended December 31, 2016 and September 30, 2016 included estimated before tax capital losses on the pending sale of the Company's U.K. property and casualty run-off subsidiaries of $22 and $59, respectively. Net of tax, the pending sale resulted in an estimated after-tax loss of $11 and an estimated after-tax gain of $6 in the three months ended December 31, 2016 and September 30, 2016, respectively, for a total estimated after-tax loss of $5 from the transaction.

[3] The three months ended December 31, 2016 included a loss for premium paid to a reinsurer to cover the risk of adverse asbestos and environmental net reserve development.

[4] The three months ended December 31, 2016 included a federal income tax benefit of $227 related to the reinsurance premium paid for the asbestos and environmental adverse development cover.

[5] The three months ended December 31, 2016 and September 30, 2016 included an estimated federal income tax benefit on the pending sale of the Company's U.K. property and casualty run-off subsidiaries of $11 and $65, respectively.

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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

GROUP BENEFITS

INCOME STATEMENTS

	THREE MONTHS ENDED																								YEAR ENDED
	Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Dec 31 2015			Sept 30 2015			Jun 30 2015			Mar 31 2015			Dec 31 2016			Dec 31 2015
Earned premiums	$	788		$	792		$	790		$	778		$	774		$	752		$	780		$	763		$	3,148		$	3,069
Fee income	20			20			18			17			17			17			16			17			75			67
Net investment income	95			95			88			88			88			91			95			97			366			371
Net realized capital gains (losses)	8			19			16			2			(6		)	(6		)	2			(1		)	45			(11		)
Total revenues	911			926			912			885			873			854			893			876			3,634			3,496
Benefits, losses and loss adjustment expenses	620			642			634			618			620			591			618			598			2,514			2,427
Amortization of DAC	8			8			7			8			7			8			8			8			31			31
Insurance operating costs and other expenses	196			190			196			194			199			198			191			200			776			788
Total benefits, losses and expenses	824			840			837			820			826			797			817			806			3,321			3,246
Income before income taxes	87			86			75			65			47			57			76			70			313			250
Income tax expense	24			24			20			15			10			15			20			18			83			63
Net income	63			62			55			50			37			42			56			52			230			187
Less: Net realized capital gains (losses) after DAC, excluded from core earnings, before tax	7			17			15			2			(5		)	(7		)	—			—			41			(12		)
Less: Income tax benefit (expense) on items not included in core earnings	(3		)	(6		)	(6		)	—			2			2			—			—			(15		)	4
Core earnings	$	59		$	51		$	46		$	48		$	40		$	47		$	56		$	52		$	204		$	195
Margin
Net income margin	6.9		%	6.7		%	6.0		%	5.7		%	4.2		%	4.9		%	6.3		%	5.9		%	6.3		%	5.4		%
Core earnings margin *	6.5		%	5.6		%	5.1		%	5.5		%	4.6		%	5.5		%	6.3		%	5.9		%	5.7		%	5.6		%
ROE
Net income (net income last 12 months to stockholders' equity including AOCI)	11.2		%	9.3		%	8.2		%	8.3		%	8.5		%	9.2		%	9.0		%	9.1		%
Less: Net realized capital gains (losses) after DAC, excluded from core earnings, before tax	2.2		%	1.5		%	0.3		%	(0.5		)%	(0.6		)%	(0.2		)%	0.1		%	0.4		%
Less: Income tax benefit (expense) on items not included in core earnings	(0.8		)%	(0.5		)%	(0.1		)%	0.2		%	0.2		%	0.1		%	0.1		%	(0.1		)%
Less: Impact of AOCI, excluded from Core ROE	(0.9		)%	(1.4		)%	(1.4		)%	(1.6		)%	(1.4		)%	(1.5		)%	(1.5		)%	(1.6		)%
Core earnings (core earnings last 12 months to stockholders' equity excluding AOCI)	10.7		%	9.7		%	9.4		%	10.2		%	10.3		%	10.8		%	10.3		%	10.4		%

* Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP).

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

GROUP BENEFITS

SUPPLEMENTAL DATA

	THREE MONTHS ENDED																								YEAR ENDED
	Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Dec 31 2015			Sept 30 2015			Jun 30 2015			Mar 31 2015			Dec 31 2016			Dec 31 2015
PREMIUMS
Fully insured ongoing premiums
Group disability	$	359		$	360		$	363		$	352		$	356		$	344		$	358		$	354		$	1,434		$	1,412
Group life	377			381			376			369			371			364			376			365			1,503			1,476
Other	52			51			51			51			47			43			46			44			205			180
Total fully insured ongoing premiums	788			792			790			772			774			751			780			763			3,142			3,068
Total buyouts [1]	—			—			—			6			—			1			—			—			6			1
Total premiums	$	788		$	792		$	790		$	778		$	774		$	752		$	780		$	763		$	3,148		$	3,069
SALES (GROSS ANNUALIZED NEW PREMIUMS)
Fully insured ongoing sales
Group disability	$	25		$	30		$	45		$	84		$	22		$	24		$	27		$	123		$	184		$	196
Group life	15			26			31			149			20			33			28			148			221			229
Other	3			5			4			33			6			4			3			29			45			42
Total fully insured ongoing sales	43			61			80			266			48			61			58			300			450			467
Total buyouts [1]	—			—			—			6			—			1			—			—			6			1
Total sales	$	43		$	61		$	80		$	272		$	48		$	62		$	58		300			$	456		$	468
RATIOS, EXCLUDING BUYOUTS
Group disability loss ratio	84.0		%	79.4		%	79.9		%	82.4		%	82.9		%	80.9		%	80.8		%	81.8		%	81.4		%	81.6		%
Group life loss ratio	70.6		%	80.0		%	78.1		%	73.8		%	76.0		%	73.4		%	76.2		%	73.2		%	75.7		%	74.7		%
Total loss ratio	76.7		%	79.1		%	78.5		%	77.6		%	78.4		%	76.8		%	77.6		%	76.7		%	78.0		%	77.4		%
Expense ratio	25.2		%	24.4		%	25.1		%	25.6		%	26.0		%	26.8		%	25.0		%	26.7		%	25.1		%	26.1		%

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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

MUTUAL FUNDS

INCOME STATEMENTS

	THREE MONTHS ENDED																								YEAR ENDED
	Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Dec 31 2015			Sept 30 2015			Jun 30 2015			Mar 31 2015			Dec 31 2016		Dec 31 2015
Investment management fees	$	150		$	145		$	140		$	135		$	146		$	149		$	152		$	147		$	570	$	594
Shareholder servicing fees	22			20			20			20			20			19			19			19			82		77
Other revenue	12			13			13			12			13			14			13			13			50		53
Total revenues	184			178			173			167			179			182			184			179			702		724
Sub-advisory	54			52			50			48			53			53			55			52			204		213
Employee compensation and benefits	27			26			24			24			25			23			25			25			101		98
Distribution and service	42			40			39			39			40			42			42			41			160		165
General, administrative and other	34			29			28			25			29			30			28			27			116		114
Total expenses	157			147			141			136			147			148			150			145			581		590
Income before income taxes	27			31			32			31			32			34			34			34			121		134
Income tax expense	10			10			12			11			12			12			12			12			43		48
Net income	$	17		$	21		$	20		$	20		$	20		$	22		$	22		$	22		$	78	$	86
Core earnings	$	17		$	21		$	20		$	20		$	20		$	22		$	22		$	22		$	78	$	86
Daily Average Total Mutual Funds segment AUM	$95,935			$93,753			$91,289			$87,192			$93,025			$93,999			$97,130			$94,595			$92,042		$94,687
Return on assets (bps, after-tax) [1]
Net income	7.4			8.5			8.9			9.3			8.9			9.1			9.0			9.5			8.5		9.1
Core earnings	7.4			8.5			8.9			9.3			8.9			9.1			9.0			9.5			8.5		9.1
ROE
Net income (net income last 12 months to stockholders' equity including AOCI)	31.7		%	33.2		%	34.2		%	35.5		%	37.4		%	39.8		%	40.3		%	40.4		%
Less: Restructuring and other costs, before tax	—		%	—		%	—		%	—		%	—		%	(2.8		)%	(2.8		)%	(2.8		)%
Less: Income tax benefit on items not included in core earnings	—		%	—		%	—		%	—		%	—		%	0.9		%	0.9		%	0.9		%
Less: Impact of AOCI, excluded from Core ROE	0.1		%	(0.2		)%	(0.2		)%	(0.3		)%	(0.1		)%	(0.2		)%	(0.3		)%	(0.4		)%
Core earnings (core earnings last 12 months to stockholders' equity excluding AOCI)	31.6		%	33.4		%	34.4		%	35.8		%	37.5		%	41.9		%	42.5		%	42.7		%

[1] Represents annualized earnings divided by daily average assets under management, as measured in basis points.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

MUTUAL FUNDS

ASSET VALUE ROLL FORWARD

ASSETS UNDER MANAGEMENT BY ASSET CLASS

	THREE MONTHS ENDED																								YEAR ENDED
	Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Dec 31 2015			Sept 30 2015			Jun 30 2015			Mar 31 2015			Dec 31 2016			Dec 31 2015
Equity
Beginning balance	$	48,476		$	46,808		$	46,455		$	47,369		$	44,318		$	47,841		$	47,131		$	45,221		$	47,369		$	45,221
Sales	2,845			2,722			2,324			3,069			2,863			2,746			2,367			2,583			10,960			10,559
Redemptions	(3,852		)	(3,138		)	(2,974		)	(2,853		)	(2,134		)	(2,105		)	(2,145		)	(2,307		)	(12,817		)	(8,691		)
Net flows	(1,007		)	(416		)	(650		)	216			729			641			222			276			(1,857		)	1,868
Change in market value and other [4]	1,805			2,084			1,003			(1,130		)	2,322			(4,164		)	488			1,634			3,762			280
Ending balance	$	49,274		$	48,476		$	46,808		$	46,455		$	47,369		$	44,318		$	47,841		$	47,131		$	49,274		$	47,369
Fixed Income
Beginning balance	$	12,864		$	12,491		$	12,389		$	12,625		$	13,443		$	13,844		$	14,267		$	14,046		$	12,625		$	14,046
Sales	1,329			1,027			843			918			988			878			883			1,240			4,117			3,989
Redemptions	(1,228		)	(888		)	(1,012		)	(1,432		)	(1,549		)	(1,166		)	(1,084		)	(1,338		)	(4,560		)	(5,137		)
Net flows	101			139			(169		)	(514		)	(561		)	(288		)	(201		)	(98		)	(443		)	(1,148		)
Change in market value and other [4]	1,888			234			271			278			(257		)	(113		)	(222		)	319			2,671			(273		)
Ending balance	$	14,853		$	12,864		$	12,491		$	12,389		$	12,625		$	13,443		$	13,844		$	14,267		$	14,853		$	12,625
Multi-Strategy Investments [1]
Beginning balance	$	16,564		$	15,642		$	14,775		$	14,419		$	13,784		$	14,566		$	14,298		$	13,768		$	14,419		$	13,768
Sales	1,279			1,147			920			712			785			568			739			887			4,058			2,979
Redemptions	(882		)	(676		)	(520		)	(600		)	(548		)	(614		)	(510		)	(536		)	(2,678		)	(2,208		)
Net flows	397			471			400			112			237			(46		)	229			351			1,380			771
Change in market value and other [4]	210			451			467			244			398			(736		)	39			179			1,372			(120		)
Ending balance	$	17,171		$	16,564		$	15,642		$	14,775		$	14,419		$	13,784		$	14,566		$	14,298		$	17,171		$	14,419
Mutual Fund AUM
Beginning balance	$	77,904		$	74,941		$	73,619		$	74,413		$	71,545		$	76,251		$	75,696		$	73,035		$	74,413		$	73,035
Sales	5,453			4,896			4,087			4,699			4,636			4,192			3,989			4,710			19,135			17,527
Redemptions	(5,962		)	(4,702		)	(4,506		)	(4,885		)	(4,231		)	(3,885		)	(3,739		)	(4,181		)	(20,055		)	(16,036		)
Net flows	(509		)	194			(419		)	(186		)	405			307			250			529			(920		)	1,491
Change in market value and other [4]	3,903			2,769			1,741			(608		)	2,463			(5,013		)	305			2,132			7,805			(113		)
Ending balance	$	81,298		$	77,904		$	74,941		$	73,619		$	74,413		$	71,545		$	76,251		$	75,696		$	81,298		$	74,413
Exchange-Traded Products AUM [2]	$	209		$	210																				$	209
Mutual Funds segment AUM before Talcott Resolution	$	81,507		$	78,114		$	74,941		$	73,619		$	74,413		$	71,545		$	76,251		$	75,696		$	81,507		$	74,413
Talcott Resolution AUM [3]	$	16,010		$	16,387		$	16,482		$	16,795		$	17,549		$	17,498		$	19,406		$	20,240		$	16,010		$	17,549
Total Mutual Funds segment AUM	$	97,517		$	94,501		$	91,423		$	90,414		$	91,962		$	89,043		$	95,657		$	95,936		$	97,517		$	91,962

[1] Includes balanced, allocation, and alternative investment products.

[2] Includes AUM of approximately $200 acquired upon acquisition in July 2016 of Lattice Strategies, LLC and subsequent net flows and change in market value.

[3] Talcott Resolution AUM consists of Company-sponsored mutual fund assets held in separate accounts supporting variable insurance and investment products.

[4] Other includes AUM from adoption of ten U.S. mutual funds with aggregate AUM of approximately $3.0 billion (as of October 2016) from Schroder Investment Management North America Inc.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

TALCOTT RESOLUTION

FINANCIAL HIGHLIGHTS

	THREE MONTHS ENDED																								YEAR ENDED
	Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Dec 31 2015			Sept 30 2015			Jun 30 2015			Mar 31 2015			Dec 31 2016			Dec 31 2015
NET INCOME
Individual Annuity [1]	$	11		$	33		$	76		$	39		$	7		$	47		$	141		$	89		$	159		$	284
Institutional and other	34			45			28			(22		)	21			27			76			22			85			146
Talcott Resolution net income	45			78			104			17			28			74			217			111			244			430
Less: Unlock benefit (charge), before tax	(20		)	(13		)	18			13			53			(49		)	47			29			(2		)	80
Less: Net realized capital gains (losses) after DAC, excluded from core earnings, before tax	(9		)	(28		)	3			(106		)	(135		)	(22		)	11			(29		)	(140		)	(175		)
Less: Net reinsurance gain on dispositions, before tax	—			—			—			—			—			20			8			—			—			28
Less: Income tax benefit (expense) on items not included in core earnings [3]	(37		)	15			(8		)	33			27			16			(20		)	—			3			23
Less: Income from discontinued operations, after-tax	—			—			—			—			—			2			—			—			—			2
Talcott Resolution core earnings	$	111		$	104		$	91		$	77		$	83		$	107		$	171		$	111		$	383		$	472
CORE EARNINGS
Individual Annuity	$	78		$	68		$	69		$	61		$	70		$	83		$	134		$	83		$	276		$	370
Institutional and other	33			36			22			16			13			24			37			28			107			102
Talcott Resolution core earnings	$	111		$	104		$	91		$	77		$	83		$	107		$	171		$	111		$	383		$	472
ROE
Net income (net income last 12 months to stockholders' equity including AOCI)	2.5		%	2.1		%	2.0		%	3.7		%	4.9		%	6.5		%	5.2		%	(4.1		)%
Less: Unlock benefit (charge), before tax	—		%	1.0		%	0.5		%	0.9		%	1.1		%	0.7		%	(0.8		)%	(1.1		)%
Less: Net realized capital gains (losses) after DAC, excluded from core earnings, before tax	(2.2		)%	(3.9		)%	(3.7		)%	(3.7		)%	(2.5		)%	(0.8		)%	(0.3		)%	(0.5		)%
Less: Net reinsurance gain on dispositions, before tax	—		%	—		%	0.3		%	0.4		%	0.4		%	0.7		%	0.4		%	0.3		%
Less: Income tax benefit (expense) on items not included in core earnings	—		%	1.0		%	1.0		%	0.8		%	0.3		%	(0.2		)%	0.2		%	0.4		%
Less: Income from discontinued operations, after-tax	—		%	—		%	—		%	—		%	—		%	0.5		%	0.4		%	(7.5		)%
Less: Impact of AOCI, excluded from Core ROE	(0.4		)%	(0.7		)%	(0.6		)%	(0.7		)%	(0.6		)%	(0.8		)%	(0.6		)%	(0.7		)%
Core earnings (core earnings last 12 months to stockholders' equity excluding AOCI)	5.1		%	4.7		%	4.5		%	6.0		%	6.2		%	6.4		%	5.9		%	5.0		%
Return on Assets (bps, after tax) [2]
Net income return on assets	9.0			26.6			60.7			30.3			5.3			34.0			95.6			58.5			31.6			49.8
Core earnings return on assets *	63.8			54.9			55.1			47.4			53.3			60.0			90.8			54.5			54.8			64.9

[1] The three months ended September 30, 2015 and June 30, 2015, respectively, included a tax provision of $12 and a tax benefit of $48 due to uncertain tax positions.

[2] Represents Individual Annuity annualized earnings divided by a two-point average of assets under management.

[3] The three months ended December 31, 2016 included income tax expense of $47 associated with IRS audit adjustments.

* Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP).

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

TALCOTT RESOLUTION

INDIVIDUAL ANNUITY

SUPPLEMENTAL DATA

	THREE MONTHS ENDED																YEAR ENDED
	Dec 31 2016		Sept 30 2016		Jun 30 2016		Mar 31 2016		Dec 31 2015		Sept 30 2015		Jun 30 2015		Mar 31 2015		Dec 31 2016		Dec 31 2015
FULL SURRENDER RATES [1]
Variable Annuity	6.7	%	7.4	%	7.7	%	6.7	%	8.3	%	9.1	%	9.9	%	10.9	%	7.1	%	9.6	%
Fixed Annuity and Other	4.2	%	5.4	%	5.1	%	4.4	%	8.6	%	12.1	%	7.3	%	6.2	%	4.8	%	8.6	%
CONTRACT COUNTS (in thousands)
Variable Annuity	544		557		571		587		603		618		634		653
Fixed Annuity and Other	121		123		125		127		128		130		134		137

[1] Represents annualized surrenders (full contract liquidation excluding partial withdrawals) divided by a two-point average of annuity account values.

	AS OF:
	Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Dec 31 2015			Sept 30 2015			Jun 30 2015			Mar 31 2015
VARIABLE ANNUITY DEATH AND LIVING BENEFITS
S&P 500 index value at end of period	2,239			2,168			2,099			2,060			2,044			1,920			2,063			2,068
Total account value with guaranteed minimum death benefits (“GMDB”)	$	40,698		$	41,696		$	41,738		$	42,500		$	44,245		$	44,464		$	49,359		$	51,500
Gross net amount at risk ("NAR")	$	3,298		$	3,404		$	3,885		$	4,262		$	4,198		$	5,027		$	3,719		$	3,683
NAR reinsured	79		%	79		%	75		%	73		%	74		%	70		%	79		%	80		%
Contracts in the Money [3]	28		%	31		%	48		%	56		%	55		%	60		%	33		%	20		%
% In the Money [3] [4]	14		%	13		%	10		%	9		%	9		%	11		%	10		%	16		%
Retained NAR [2]	$	704		$	730		$	965		$	1,149		$	1,105		$	1,513		$	784		$	733
Net GAAP liability for GMDB benefits	$	163		$	175		$	178		$	184		$	190		$	193		$	184		$	183
Total account value with guaranteed minimum withdrawal benefits (“GMWB”)	$	18,290		$	18,869		$	18,952		$	19,384		$	20,194		$	20,441		$	22,816		$	23,995
Gross NAR	$	203		$	195		$	240		$	267		$	248		$	306		$	168		$	152
NAR reinsured	39		%	38		%	35		%	34		%	33		%	31		%	31		%	28		%
Contracts in the Money [3]	7		%	7		%	10		%	11		%	11		%	13		%	7		%	6		%
% In the Money [3] [4]	13		%	12		%	10		%	10		%	9		%	9		%	11		%	12		%
Retained NAR [2]	$	124		$	121		$	155		$	177		$	167		$	212		$	116		$	109
Net GAAP liability for non-lifetime GMWB benefits	$	153		$	238		$	296		$	254		$	174		$	194		$	54		$	99
Net GAAP liability for lifetime GMWB benefits	$	191		$	156		$	156		$	150		$	149		$	108		$	105		$	140

[2] Policies with a guaranteed living benefit 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 the GMWB is released. Similarly, when a policy goes into benefit status on a GMWB, its GMDB NAR is released.

[3] Excludes contracts that are fully reinsured.

[4] For all contracts that are “in the money”, this represents the percentage by which the average contract was in the money.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

TALCOTT RESOLUTION

INDIVIDUAL ANNUITY

ACCOUNT VALUE ROLLFORWARD

	THREE MONTHS ENDED																								YEAR ENDED
	Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Dec 31 2015			Sept 30 2015			Jun 30 2015			Mar 31 2015			Dec 31 2016			Dec 31 2015
VARIABLE ANNUITY
Beginning balance	$	41,696		$	41,738		$	42,500		$	44,245		$	44,464		$	49,359		$	51,500		$	52,861		$	44,245		$	52,861
Deposits	34			37			40			42			45			43			52			49			153			189
Partial withdrawals	(450		)	(344		)	(379		)	(410		)	(517		)	(432		)	(487		)	(498		)	(1,583		)	(1,934		)
Full surrenders	(694		)	(772		)	(813		)	(728		)	(920		)	(1,065		)	(1,250		)	(1,426		)	(3,007		)	(4,661		)
Death benefits/annuitizations/other [1]	(299		)	(338		)	(344		)	(370		)	(356		)	(361		)	(394		)	(421		)	(1,351		)	(1,532		)
Net flows	(1,409		)	(1,417		)	(1,496		)	(1,466		)	(1,748		)	(1,815		)	(2,079		)	(2,296		)	(5,788		)	(7,938		)
Change in market value/change in reserve/interest credited and other	411			1,375			734			(279		)	1,529			(3,080		)	(62		)	935			2,241			(678		)
Ending balance	$	40,698		$	41,696		$	41,738		$	42,500		$	44,245		$	44,464		$	49,359		$	51,500		$	40,698		$	44,245
FIXED MARKET VALUE ADJUSTED (“MVA”) AND OTHER
Beginning balance	$	7,792		$	7,901		$	8,014		$	8,109		$	8,272		$	8,516		$	8,666		$	8,748		$	8,109		$	8,748
Surrenders	(81		)	(83		)	(86		)	(76		)	(147		)	(189		)	(122		)	(108		)	(326		)	(566		)
Death benefits/annuitizations/other [1]	(102		)	(105		)	(98		)	(86		)	(102		)	(85		)	(92		)	(82		)	(391		)	(361		)
Transfers	—			—			—			—			(1		)	(1		)	(3		)	36			—			31
Net flows	(183		)	(188		)	(184		)	(162		)	(250		)	(275		)	(217		)	(154		)	(717		)	(896		)
Change in market value/change in reserve/interest credited and other	64			79			71			67			87			31			67			72			281			257
Ending balance	$	7,673		$	7,792		$	7,901		$	8,014		$	8,109		$	8,272		$	8,516		$	8,666		$	7,673		$	8,109
TOTAL INDIVIDUAL ANNUITY
Beginning balance	$	49,488		$	49,639		$	50,514		$	52,354		$	52,736		$	57,875		$	60,166		$	61,609		$	52,354		$	61,609
Deposits	34			37			40			42			45			43			52			49			153			189
Surrenders and partial withdrawals	(1,225		)	(1,199		)	(1,278		)	(1,214		)	(1,584		)	(1,686		)	(1,859		)	(2,032		)	(4,916		)	(7,161		)
Death benefits/annuitizations/other [1]	(401		)	(443		)	(442		)	(456		)	(458		)	(446		)	(486		)	(503		)	(1,742		)	(1,893		)
Transfers	—			—			—			—			(1		)	(1		)	(3		)	36			—			31
Net flows	(1,592		)	(1,605		)	(1,680		)	(1,628		)	(1,998		)	(2,090		)	(2,296		)	(2,450		)	(6,505		)	(8,834		)
Change in market value/change in reserve/interest credited and other	475			1,454			805			(212		)	1,616			(3,049		)	5			1,007			2,522			(421		)
Ending balance	$	48,371		$	49,488		$	49,639		$	50,514		$	52,354		$	52,736		$	57,875		$	60,166		$	48,371		$	52,354

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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CORPORATE

INCOME STATEMENTS

	THREE MONTHS ENDED																								YEAR ENDED
	Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Dec 31 2015			Sept 30 2015			Jun 30 2015			Mar 31 2015			Dec 31 2016			Dec 31 2015
Fee income	$	1		$	1		$	1		$	1		$	2		$	1		$	3		$	2		$	4		$	8
Net investment income	8			6			6			11			5			5			4			3			31			17
Net realized capital gains (losses) [1]	(97		)	(1		)	(1		)	(4		)	(2		)	(3		)	2			18			(103		)	15
Total revenues	(88		)	6			6			8			5			3			9			23			(68		)	40
Insurance operating costs and other expenses	3			6			(1		)	6			6			9			11			7			14			33
Loss on extinguishment of debt	—			—			—			—			—			—			21			—			—			21
Interest expense	82			86			85			86			86			88			89			94			339			357
Restructuring and other costs	—			—			—			—			4			4			2			10			—			20
Total expenses	85			92			84			92			96			101			123			111			353			431
Loss before income taxes	(173		)	(86		)	(78		)	(84		)	(91		)	(98		)	(114		)	(88		)	(421		)	(391		)
Income tax benefit [3]	(141		)	(31		)	(82		)	(55		)	(64		)	(95		)	(43		)	(31		)	(309		)	(233		)
Net income (loss)	(32		)	(55		)	4			(29		)	(27		)	(3		)	(71		)	(57		)	(112		)	(158		)
Less: Net realized capital gains (losses) after DAC, excluded from core losses, before tax [1]	(99		)	1			(2		)	(4		)	(1		)	(5		)	2			18			(104		)	14
Less: Restructuring and other costs, before tax	—			—			—			—			(4		)	(4		)	(2		)	(10		)	—			(20		)
Less: Loss on extinguishment of debt, before tax	—			—			—			—			—			—			(21		)	—			—			(21		)
Less: Income tax benefit (expense) [2] [3]	114			(2		)	56			26			34			69			3			(3		)	194			103
Core losses	$	(47	)	$	(54	)	$	(50	)	$	(51	)	$	(56	)	$	(63	)	$	(53	)	$	(62	)	$	(202	)	$	(234	)

[1] The three months ended December 31, 2016 included a realized capital loss of $96, before tax, associated with the write-down of investments in solar energy partnerships made in the quarter that generated solar tax credits and other tax benefits of $113 included on the "income tax benefit (expense)" line in the net income (loss) to core earnings reconciliation.

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

[3] The three months ended December 31, 2016 included federal income tax benefits of $113 associated with investments in solar energy partnerships.The three months ended June 30, 2016, March 31, 2016, December 31, 2015 and September 30, 2015 included federal income tax benefits of $53, $25, $34 and $60, respectively, from the reduction of the deferred tax valuation allowance on capital loss carryovers.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTMENT EARNINGS BEFORE TAX

CONSOLIDATED

	THREE MONTHS ENDED																								YEAR ENDED
	Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Dec 31 2015			Sept 30 2015			Jun 30 2015			Mar 31 2015			Dec 31 2016			Dec 31 2015
Net Investment Income
Fixed maturities [1]
Taxable	$	488		$	483		$	498		$	488		$	490		$	497		$	490		$	485		$	1,957		$	1,962
Tax-exempt	103			106			106			107			108			111			113			115			422			447
Total fixed maturities	$	591		$	589		$	604		$	595		$	598		$	608		$	603		$	600		$	2,379		$	2,409
Equity securities, available-for-sale	9			5			6			11			6			8			5			6			31			25
Mortgage loans	70			62			60			60			60			67			71			69			252			267
Policy loans	21			20			20			22			22			20			20			20			83			82
Limited partnerships and other alternative investments [2]	73			93			40			8			12			22			94			99			214			227
Other [3]	25			29			34			27			32			33			31			42			115			138
Subtotal	789			798			764			723			730			758			824			836			3,074			3,148
Investment expense	(31		)	(26		)	(29		)	(27		)	(35		)	(28		)	(28		)	(27		)	(113		)	(118		)
Total net investment income	$	758		$	772		$	735		$	696		$	695		$	730		$	796		$	809		$	2,961		$	3,030
Annualized investment yield, before tax [4]	4.4		%	4.5		%	4.2		%	4.0		%	3.9		%	4.1		%	4.5		%	4.5		%	4.3		%	4.3		%
Annualized limited partnerships and other alternative investment yield, before tax [4]	12.1		%	15.2		%	6.1		%	1.2		%	1.5		%	2.9		%	12.9		%	13.7		%	8.5		%	8.0		%
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]	4.2		%	4.1		%	4.1		%	4.1		%	4.1		%	4.2		%	4.1		%	4.1		%	4.1		%	4.1		%
Annualized investment yield, after-tax [4]	3.1		%	3.1		%	3.0		%	2.8		%	2.8		%	2.8		%	3.1		%	3.1		%	3.0		%	3.0		%
Average reinvestment rate [5]	3.7		%	3.2		%	3.2		%	3.8		%	3.4		%	3.7		%	3.5		%	3.1		%	3.5		%	3.4		%
Average sales/maturities yield [6]	3.7		%	3.9		%	4.0		%	4.3		%	3.4		%	3.9		%	3.6		%	4.1		%	4.0		%	3.8		%
Portfolio duration (in years) [7]	5.7			5.8			5.8			5.8			5.5			5.4			5.5			5.4			5.7			5.5

[1] Includes income on short-term bonds.

[2] Limited partnerships include hedge funds and a fund of funds; alternative investments include income on real estate joint ventures and hedge fund investments outside of limited partnerships and limited liability companies.

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

[4] Represents annualized net investment income divided by the monthly average invested assets at cost, amortized cost, or adjusted carrying value, as applicable, excluding repurchase agreement and securities lending collateral, if any, and derivatives book value.

[5] Represents the annualized yield on fixed maturities and mortgage loans that were purchased during the respective period. Excludes U.S. Treasury securities, cash equivalent securities, and repurchase agreement and securities lending collateral, if any.

[6] Represents the annualized yield on fixed maturities and mortgage loans that were sold, matured, or redeemed, including calls and pay-downs, during the respective period. Excludes U.S. Treasury securities, cash equivalent securities, and repurchase agreement and securities lending collateral, if any.

[7] Excludes certain short-term securities and derivative instruments related to hedging U.S. variable annuity liabilities.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTMENT EARNINGS BEFORE TAX

PROPERTY & CASUALTY

	THREE MONTHS ENDED																								YEAR ENDED
	Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Dec 31 2015			Sept 30 2015			Jun 30 2015			Mar 31 2015			Dec 31 2016			Dec 31 2015
Net Investment Income
Fixed maturities [1]
Taxable	$	176		$	166		$	168		$	169		$	164		$	157		$	161		$	165		$	679		$	647
Tax-exempt	81			82			82			84			84			86			88			90			329			348
Total fixed maturities	$	257		$	248		$	250		$	253		$	248		$	243		$	249		$	255		$	1,008		$	995
Equity securities, available-for-sale	4			3			3			4			3			4			3			2			14			12
Mortgage loans	20			20			19			19			19			20			19			18			78			76
Limited partnerships and other alternative investments [2]	36			36			23			6			9			5			39			53			101			106
Other [3]	6			9			9			2			5			5			8			10			26			28
Subtotal	323			316			304			284			284			277			318			338			1,227			1,217
Investment expense	(13		)	(11		)	(12		)	(12		)	(14		)	(10		)	(11		)	(11		)	(48		)	(46		)
Total net investment income	$	310		$	305		$	292		$	272		$	270		$	267		$	307		$	327		$	1,179		$	1,171
Annualized investment yield, before tax [4]	4.2		%	4.1		%	3.9		%	3.7		%	3.7		%	3.6		%	4.2		%	4.5		%	4.0		%	4.0		%
Annualized limited partnerships and other alternative investment yield, before tax [4]	11.0		%	11.4		%	6.9		%	1.7		%	2.2		%	1.3		%	10.1		%	14.1		%	7.7		%	7.1		%
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]	3.9		%	3.8		%	3.8		%	3.8		%	3.7		%	3.7		%	3.9		%	4.0		%	3.8		%	3.8		%
Annualized investment yield, after-tax [4]	3.1		%	3.0		%	2.9		%	2.7		%	2.8		%	2.7		%	3.1		%	3.3		%	2.9		%	3.0		%
Average reinvestment rate [5]	3.6		%	3.1		%	3.1		%	3.8		%	3.6		%	3.8		%	3.7		%	3.4		%	3.4		%	3.6		%
Average sales/maturities yield [6]	3.8		%	4.0		%	3.9		%	4.5		%	3.4		%	4.2		%	4.1		%	4.3		%	4.0		%	4.0		%
Portfolio duration (in years) [7]	4.9			5.0			5.1			5.2			5.0			4.9			5.0			4.8			4.9			5.0

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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NET INVESTMENT INCOME

CONSOLIDATED

	THREE MONTHS ENDED																	YEAR ENDED
Net Investment Income by Segment	Dec 31 2016		Sept 30 2016		Jun 30 2016		Mar 31 2016			Dec 31 2015		Sept 30 2015		Jun 30 2015		Mar 31 2015		Dec 31 2016		Dec 31 2015
Net Investment Income
Commercial Lines	$	243	$	239	$	226	$	209		$	206	$	208	$	239	$	257	$	917	$	910
Personal Lines	36		35		33		31			30		29		34		35		135		128
P&C Other Operations	31		31		33		32			34		30		34		35		127		133
Total Property & Casualty	$	310	$	305	$	292	$	272		$	270	$	267	$	307	$	327	$	1,179	$	1,171
Group Benefits	95		95		88		88			88		91		95		97		366		371
Mutual Funds	—		—		1		—			1		—		—		—		1		1
Talcott Resolution	345		366		348		325			331		367		390		382		1,384		1,470
Corporate	8		6		6		11			5		5		4		3		31		17
Total net investment income by segment	$	758	$	772	$	735	$	696		$	695	$	730	$	796	$	809	$	2,961	$	3,030
	THREE MONTHS ENDED																	YEAR ENDED
Net Investment Income From Limited Partnerships and Other Alternative Investments	Dec 31 2016		Sept 30 2016		Jun 30 2016		Mar 31 2016			Dec 31 2015		Sept 30 2015		Jun 30 2015		Mar 31 2015		Dec 31 2016		Dec 31 2015
Total Property & Casualty	$	36	$	36	$	23	$	6		$	9	$	5	$	39	$	53	$	101	$	106
Group Benefits	10		10		4		3			2		8		8		6		27		24
Talcott Resolution	27		47		13		(1		)	1		9		47		40		86		97
Total net investment income from limited partnerships and other alternative investments [1]	$	73	$	93	$	40	$	8		$	12	$	22	$	94	$	99	$	214	$	227

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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMPONENTS OF NET REALIZED CAPITAL GAINS (LOSSES)

CONSOLIDATED

	THREE MONTHS ENDED																								YEAR ENDED
	Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Dec 31 2015			Sept 30 2015			Jun 30 2015			Mar 31 2015			Dec 31 2016			Dec 31 2015
Net Realized Capital Gains (Losses)
Gross gains on sales	$	113		$	114		$	124		$	90		$	59		$	83		$	121		$	197		$	441		$	460
Gross losses on sales	(96		)	(24		)	(25		)	(108		)	(72		)	(73		)	(112		)	(148		)	(253		)	(405		)
Net impairment losses	(12		)	(14		)	(7		)	(23		)	(39		)	(40		)	(11		)	(12		)	(56		)	(102		)
Valuation allowances on mortgage loans	—			—			—			—			(3		)	1			—			(3		)	—			(5		)
Results of variable annuity hedge program
GMWB derivatives, net	(30		)	6			3			(17		)	(52		)	(32		)	(4		)	1			(38		)	(87		)
Macro hedge	(65		)	(64		)	(20		)	(14		)	(70		)	51			(23		)	(4		)	(163		)	(46		)
Total results of variable annuity hedge program	(95		)	(58		)	(17		)	(31		)	(122		)	19			(27		)	(3		)	(201		)	(133		)
Transactional foreign currency revaluation	(4		)	(13		)	(87		)	(44		)	(3		)	(17		)	16			—			(148		)	(4		)
Non-qualifying foreign currency derivatives	2			17			82			39			9			11			(16		)	(7		)	140			(3		)
Other net gains (losses) [1] [2] [3]	(57		)	(39		)	(17		)	(78		)	45			(28		)	38			(19		)	(191		)	36
Total net realized capital gains (losses)	$	(149	)	$	(17	)	$	53		$	(155	)	$	(126	)	$	(44	)	$	9		$	5		$	(268	)	$	(156	)
Less: Impacts of DAC	(5		)	(5		)	—			(7		)	5			1			(1		)	—			(17		)	5
Less: Realized gains, included in core earnings, before tax	2			1			2			—			4			4			4			2			5			14
Total net realized capital gains (losses) after DAC, excluded from core earnings, before tax	(146		)	(13		)	51			(148		)	(135		)	(49		)	6			3			(256		)	(175		)
Less: Impacts of tax [4]	(86		)	(46		)	21			(52		)	(45		)	(19		)	2			1			(163		)	(61		)
Total net realized capital gains (losses), net of tax and DAC, excluded from core earnings	$	(60	)	$	33		$	30		$	(96	)	$	(90	)	$	(30	)	$	4		$	2		$	(93	)	$	(114	)

[1] Includes changes in value of non-qualifying derivatives, including credit derivatives, interest rate derivatives used to manage duration, and embedded derivatives associated with modified coinsurance reinsurance contracts.

[2] The three months ended December 31, 2016 and September 30, 2016 included estimated before tax capital losses on the pending sale of the Company's U.K. property and casualty run-off subsidiaries of $22 and $59, respectively. Net of tax, the pending sale resulted in an estimated after-tax loss of $11 and an estimated after-tax gain of $6 in the three months ended December 31, 2016 and September 30, 2016, respectively, for a total estimated after-tax loss of $5 from the transaction. The three months ended December 31, 2016 included a realized capital loss of $96, before tax, associated with the write-down of investments in solar energy partnerships made in the quarter that generated solar tax credits and other tax benefits of $113 included on the "income tax benefit (expense)" line in the net income (loss) to core earnings reconciliation.

[3] Includes periodic net coupon settlements on credit derivatives which are included in core earnings.

[4] The three months ended December 31. 2016 included $113 of tax credits and other tax benefits explained above in footnote [2] and income tax expense of $47 associated with IRS audit adjustments. The three months ended December 31, 2016 and September 30, 2016 included an estimated federal income tax benefit on the pending sale of the Company's U.K. property and casualty run-off subsidiaries of $11 and $65, respectively.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMPOSITION OF INVESTED ASSETS

CONSOLIDATED

	Dec 31 2016				Sept 30 2016				Jun 30 2016				Mar 31 2016				Dec 31 2015
	Amount [1]		Percent		Amount		Percent		Amount		Percent		Amount		Percent		Amount [1]		Percent
Total investments	$	70,637	100.0	%	$	73,708	100.0	%	$	75,093	100.0	%	$	74,013	100.0	%	$	72,918	100.0	%
Asset-backed securities	$	2,382	4.3	%	$	2,685	4.5	%	$	2,777	4.5	%	$	2,665	4.4	%	$	2,499	4.2	%
Collateralized debt obligations	1,916		3.4	%	2,573		4.3	%	2,867		4.7	%	3,107		5.1	%	3,038		5.1	%
Commercial mortgage-backed securities	4,936		8.8	%	5,268		8.7	%	5,195		8.5	%	5,224		8.6	%	4,717		8.0	%
Corporate	25,666		45.8	%	26,904		44.6	%	27,158		44.4	%	27,297		45.0	%	26,802		45.3	%
Foreign government/government agencies	1,171		2.1	%	1,186		2.0	%	1,188		1.9	%	1,189		2.0	%	1,308		2.2	%
Municipal	11,486		20.5	%	12,594		20.9	%	12,611		20.6	%	12,303		20.3	%	12,121		20.5	%
Residential mortgage-backed securities	4,767		8.5	%	4,936		8.2	%	4,826		7.9	%	4,338		7.1	%	4,046		6.8	%
U.S. Treasuries	3,679		6.6	%	4,079		6.8	%	4,619		7.5	%	4,570		7.5	%	4,665		7.9	%
Total fixed maturities, available-for-sale	$	56,003	100.0	%	$	60,225	100.0	%	$	61,241	100.0	%	$	60,693	100.0	%	$	59,196	100.0	%
U.S. government/government agencies	$	7,626	13.6	%	$	8,225	13.6	%	$	8,887	14.5	%	$	8,316	13.7	%	$	8,179	13.8	%
AAA	6,969		12.5	%	7,693		12.8	%	7,883		12.9	%	7,771		12.8	%	7,195		12.2	%
AA	9,182		16.4	%	10,342		17.2	%	10,600		17.3	%	10,726		17.7	%	10,584		17.9	%
A	14,996		26.8	%	15,804		26.2	%	15,898		25.9	%	15,631		25.7	%	15,128		25.5	%
BBB	13,901		24.8	%	14,657		24.3	%	14,739		24.1	%	14,968		24.7	%	14,918		25.2	%
BB	2,035		3.6	%	2,089		3.5	%	2,094		3.4	%	2,123		3.5	%	1,983		3.3	%
B	1,008		1.8	%	1,092		1.8	%	915		1.5	%	967		1.6	%	1,034		1.8	%
CCC	254		0.4	%	281		0.5	%	171		0.3	%	131		0.2	%	116		0.2	%
CC & below	32		0.1	%	42		0.1	%	54		0.1	%	60		0.1	%	59		0.1	%
Total fixed maturities, available-for-sale	$	56,003	100.0	%	$	60,225	100.0	%	$	61,241	100.0	%	$	60,693	100.0	%	$	59,196	100.0	%

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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTED ASSET EXPOSURES

December 31, 2016

	Cost or Amortized Cost		Fair Value		Percent of Total Invested Assets
Top Ten Corporate Fixed Maturity and Equity Exposures by Sector, Available-for-sale
Utilities	$	5,048	$	5,310	7.5	%
Financial services	5,009		5,253		7.5	%
Consumer non-cyclical	3,927		4,089		5.8	%
Technology and communications	3,509		3,761		5.3	%
Energy [1]	2,127		2,262		3.2	%
Consumer cyclical	1,630		1,706		2.4	%
Capital goods	1,564		1,664		2.4	%
Basic industry	1,106		1,158		1.6	%
Transportation	905		945		1.3	%
Other	575		615		0.9	%
Total	$	25,400	$	26,763	37.9	%
Top Ten Exposures by Issuer [2]
State of California	$	263	$	289	0.4	%
Morgan Stanley	264		268		0.4	%
Commonwealth of Massachusetts	236		253		0.4	%
Goldman Sachs Group Inc.	234		244		0.4	%
American Electric Power Company Inc.	231		238		0.3	%
Verizon Communications Inc.	225		237		0.3	%
JP Morgan Chase & Co.	232		236		0.3	%
New York State Dormitory Authority	216		231		0.3	%
National Grid plc	195		218		0.3	%
CVS Health Corp.	202		217		0.3	%
Total	$	2,298	$	2,431	3.4	%

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

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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

APPENDIX

BASIS OF PRESENTATION AND DEFINITIONS

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

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

Property & Casualty ("P&C") businesses consist of three reporting segments: Commercial Lines, Personal Lines and P&C Other Operations. Commercial Lines provides businesses with workers' compensation, property, automobile, liability, umbrella, marine and livestock 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. On July 29, 2016, the Company acquired Maxum Specialty Insurance Group ("Maxum") adding excess and surplus lines capability. Maxum's revenues and earnings since the acquisition date are included in the results of operations of the Company's Commercial Lines operating segment. Additionally, within Commercial Lines, a variety of customized insurance products and risk management services including workers' compensation, automobile, general liability, professional liability, bond, and specialty casualty coverages are offered through the segment's specialty commercial lines. Personal Lines provides automobile, homeowners and personal umbrella coverages to individuals across the U.S., including a special program designed exclusively for members of AARP. P&C Other Operations includes certain property and casualty operations, managed by the Company, that have discontinued writing new business and substantially all of the Company's asbestos and environmental exposures.

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

Mutual Funds provides investment management, administration, distribution and related services to investors through investment products in both domestic and international markets. Mutual fund and exchange-traded products are sold primarily through retail, bank trust and registered investment advisor channels. On July 29, 2016, the Company acquired Lattice Strategies LLC ("Lattice"), an investment management firm and provider of strategic beta exchange-traded products. Lattice's revenues and earnings since the acquisition date are included in the results of operations of the Company's Mutual Funds operating segment. Talcott funds included in Total Mutual Funds segment assets under management represent assets held in separate accounts supporting the Company's legacy variable insurance products.

Talcott Resolution is comprised of the runoff of the Company's U.S. annuity and institutional and private-placement life insurance businesses, and the retained Japan fixed payout annuity liabilities.

Corporate includes the Company's capital raising activities (including debt financing and related interest expense), purchase accounting adjustments related to goodwill, and other expenses not allocated to the reporting segments.

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 and earned 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 and insurance operating costs and expenses, including certain centralized services and bad debt expense) 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, expenses and policyholder dividends for every $100 of earned premiums. A combined ratio below 100 demonstrates underwriting profit; a combined ratio above 100 demonstrates underwriting losses. The catastrophe ratio (a component of the loss ratio) represents the ratio of catastrophe losses to earned premiums. The prior accident year loss and loss adjustment expense ratio (a component of the loss ratio) represents the increase (decrease) in the estimated cost of settling catastrophe and non-catastrophe claims incurred in prior accident years as recorded in the current calendar year divided by earned premiums.

The Company, along with others in the life insurance industry, uses underwriting ratios as measures of the Group Benefits segment's performance. The loss ratio is the ratio of benefits, losses and loss adjustment expenses to premiums and other considerations, excluding buyout premiums. The expense ratio is the ratio of insurance operating costs and other expenses to premiums and other considerations, excluding buyout premiums. Buyout premiums represent takeover of open claim liabilities and other non-recurring premium amounts.

DISCUSSION OF NON-GAAP AND OTHER FINANCIAL MEASURES

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

The Company uses the non-GAAP financial measure core earnings as an important measure of the Company's operating performance. The Company believes that core earnings provides investors with a valuable measure of the performance of the Company's businesses because it reveals trends in our insurance and financial services businesses that may be obscured by including the net effect of certain realized capital gains and losses, certain restructuring and other costs, loss on extinguishment of debt, gains and losses from reinsurance transactions, income tax benefit (expense) on items not included in core earnings, income tax benefit from reduction in deferred income tax valuation allowance, discontinued operations, and the impact of Unlocks to deferred policy acquisition costs (“DAC”), sales inducement assets ("SIA") 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. The Company believes, however, that some realized capital gains and losses are integrally related to our insurance operations, so core earnings includes net realized gains and losses such as net periodic settlements on credit derivatives. These net realized gains and losses are directly related to an offsetting item included in the income statement such as net investment income. Net income is the most directly comparable U.S. 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, the Company believes 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 is set forth on page 2.

Core earnings per share is calculated based on the non-GAAP financial measure core earnings. The Company believes that the measure core earnings per share provides investors with a valuable measure of the Company's operating performance for many of the same reasons applicable to its underlying measure, core earnings. Net income per share is the most directly comparable U.S. 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, the Company believes that it is useful for investors to evaluate both net income per share and core earnings per share when reviewing our performance.

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. The Company believes 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 U.S. GAAP measure. A reconciliation of book value per diluted share to book value per diluted share, excluding AOCI, is set forth on page 1.

The Company provides different measures of the return on stockholders' equity (“ROE”). ROE - Core earnings is calculated based on non-GAAP financial measures. ROE - Core earnings is calculated by dividing (a) core earnings for the prior four fiscal quarters by (b) average common stockholders' equity, excluding AOCI. ROE - Net income is the most directly comparable U.S. GAAP measure. ROE - Net income is calculated by dividing (a) net income for the prior four fiscal quarters by (b) average common stockholders' equity, including AOCI. ROEs at the segment level and for consolidated, excluding Talcott Resolution, represent a levered view of ROE as debt financing and related interest expense are attributed to the businesses consistent with the overall average debt to capitalization ratios of the consolidated entity. The Company excludes AOCI in the calculation of ROE - core earnings to provide investors with a measure of how effectively the Company is investing the portion of the Company's net worth that is primarily attributable to the Company's business operations. The Company provides investors with return-on-equity measures based on its non-GAAP core earnings financial measures for the reasons set forth in the related discussion above.

A reconciliation of ROE - Net income to ROE - Core earnings is set forth below:

	LAST TWELVE MONTHS ENDED
	Dec 31 2016		Sept 30 2016		Jun 30 2016		Mar 31 2016		Dec 31 2015		Sept 30 2015		Jun 30 2015		Mar 31 2015
ROE - Net income	5.2	%	7.6	%	7.3	%	8.3	%	9.3	%	8.9	%	8.8	%	4.0	%
Less: Unlock benefit (charge), before tax	—	%	0.4	%	0.2	%	0.3	%	0.4	%	0.3	%	(0.3	)%	(0.4	)%
Less: Net realized capital gains (losses) including DAC, excluded from core earnings, before tax	(1.5	)%	(1.3	)%	(1.5	)%	(1.8	)%	(1.0	)%	(0.3	)%	0.2	%	0.1	%
Less: Restructuring and other costs, before tax	—	%	—	%	—	%	(0.1	)%	(0.1	)%	(0.2	)%	(0.3	)%	(0.3	)%
Less: Loss on extinguishment of debt, before tax	—	%	—	%	—	%	(0.1	)%	(0.1	)%	(0.1	)%	(0.1	)%	—	%
Less: (Loss) gain on reinsurance transactions, before tax	(3.8	)%	—	%	0.1	%	0.2	%	0.2	%	0.3	%	0.2	%	0.1	%
Less: Pension settlement, before tax	—	%	—	%	—	%	—	%	—	%	(0.7	)%	(0.7	)%	(0.7	)%
Less: Income tax benefit on items not included in core earnings	2.7	%	1.1	%	1.4	%	1.1	%	0.7	%	0.6	%	0.4	%	0.4	%
Less: Income from discontinued operations, after-tax	—	%	—	%	—	%	—	%	—	%	0.2	%	0.2	%	(3.0	)%
Less: Impact of AOCI, excluded from denominator of Core ROE	0.2	%	(0.2	)%	(0.3	)%	(0.1	)%	—	%	(0.3	)%	(0.4	)%	(0.3	)%
ROE - Core earnings	7.6	%	7.6	%	7.4	%	8.8	%	9.2	%	9.1	%	9.6	%	8.1	%

A reconciliation of Consolidated ROE - Net income, excluding Talcott Resolution to Consolidated ROE - Core earnings, excluding Talcott Resolution is set forth below:

	LAST TWELVE MONTHS ENDED
	Dec 31 2016		Sept 30 2016		Jun 30 2016		Mar 31 2016		Dec 31 2015		Sept 30 2015		Jun 30 2015		Mar 31 2015
ROE - Net income (excluding Talcott Resolution)	6.8	%	10.8	%	10.5	%	11.0	%	12.0	%	10.3	%	11.3	%	9.3	%
Less: Net realized capital gains (losses) including DAC, excluded from core earnings, before tax	(1.1	)%	—	%	(0.2	)%	(0.6	)%	—	%	—	%	0.5	%	0.5	%
Less: Restructuring and other costs, before tax	—	%	0.2	%	(0.1	)%	(0.1	)%	(0.2	)%	(0.4	)%	(0.5	)%	(0.6	)%
Less: Loss on extinguishment of debt, before tax	—	%	—	%	—	%	(0.2	)%	(0.2	)%	(0.2	)%	(0.2	)%	—	%
Less: (Loss) gain on reinsurance transaction, before tax	(6.0	)%	—	%	—	%	—	%	—	%	—	%	—	%	—	%
Less: Pension settlement, before tax	—	%	—	%	—	%	—	%	—	%	(1.1	)%	(1.2	)%	(1.1	)%
Less: Income tax benefit on items not included in core earnings	4.3	%	1.2	%	1.6	%	1.3	%	1.0	%	1.1	%	0.5	%	0.4	%
Less: Income from discontinued operations, after-tax	—	%	—	%	0.1	%	0.1	%	0.1	%	0.1	%	0.1	%	0.1	%
Less: Impact of AOCI, excluded from denominator of Core ROE	0.7	%	0.3	%	0.2	%	0.2	%	0.4	%	0.3	%	0.2	%	0.1	%
ROE - Core earnings (excluding Talcott Resolution)	8.9	%	9.1	%	8.9	%	10.3	%	10.9	%	10.5	%	11.9	%	9.9	%

The Company evaluates profitability of the individual P&C businesses primarily on the basis of underwriting gain (loss). Underwriting gain (loss) is a before tax measure that represents earned premiums less incurred losses, loss adjustment expenses and underwriting expenses and policyholder dividends. Underwriting gain (loss) is influenced significantly by earned premium growth and the adequacy of the Company's pricing. Underwriting profitability over time is also greatly influenced by the Company's pricing and underwriting discipline, which seeks to manage exposure to loss through favorable risk selection and diversification, its management of claims, its use of reinsurance and its ability to manage its expense ratio, which it accomplishes through its management of acquisition costs and other underwriting expenses. Net income (loss) is the most directly comparable U.S. GAAP measure. The Company believes that underwriting gain (loss) provides investors with a valuable measure of before tax profitability derived from underwriting activities, which are managed separately from the Company's investing activities. Reconciliations of underwriting gain (loss) to net income for the Company's P&C businesses are set forth on pages 9, 11, 15 and 19.

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.

Underlying combined ratio is a non-GAAP financial measure. Combined ratio is the most directly comparable GAAP measure. Underlying combined ratio represents the combined ratio before catastrophes and prior accident 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 development. A reconciliation of the combined ratio to the underlying combined ratio for Commercial Lines and Personal Lines is set forth on pages 13 and 16, respectively.

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

Return on Assets ("ROA"), core earnings, is a non-GAAP financial measure that the Company uses to evaluate the Mutual Funds and Talcott Resolution (Individual Annuity) segments' operating performance. ROA is the most directly comparable U.S. GAAP measure. The Company believes that ROA, core earnings, provides investors with a valuable measure of the performance of these 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, the Company believes it is important for investors to evaluate both ROA, core earnings, and ROA when reviewing the Company's performance.