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): July 27, 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))

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

[ ] Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

Item 2.02 Results of Operations and Financial Condition

On July 27, 2017, The Hartford Financial Services Group, Inc. (the "Company") issued (i) a press release announcing its financial results for the quarterly period ended June 30, 2017, and (ii) its Investor Financial Supplement (“IFS”) relating to its financial results for the quarterly period ended June 30, 2017. Copies of the press release and the IFS are furnished herewith as Exhibits 99.1 and 99.2, respectively, and are incorporated herein by reference.

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

Item 9.01 Financial Statements and Exhibits

Exhibit No.
99.1	Press Release of The Hartford Financial Services Group, Inc. dated July 27, 2017
99.2	Investor Financial Supplement of The Hartford Financial Services Group, Inc. for the quarterly period ended June 30, 2017

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:	April 27, 2017	By:	/s/ Scott R. Lewis
		Name:	Scott R. Lewis
		Title:	Senior Vice President and Controller

EX-99.1

NEWS RELEASE

The Hartford Reports Second Quarter2017 Net Loss Per Diluted Share Of $0.11 And Core Earnings Per Diluted Share* Of $1.04

• Net loss of $40 million, including a previously-announced $488 million, after tax, pension settlement charge, compared with net income of $216 million in second quarter2016; net loss per diluted share of $0.11 compared with net income per diluted share of $0.54 in second quarter2016

• Core earnings* of $389 million compared with $122 million in second quarter2016, which included unfavorable prior accident year development (PYD) of $228 million, after tax; core earnings per diluted share* were $1.04 compared with $0.31 in second quarter2016

• Current accident year catastrophe losses totaled $155 million, before tax, down 16% from $184 million, before tax, in second quarter2016; favorable PYD was $10 million, before tax, compared with unfavorable PYD of $351 million, before tax, in second quarter 2016, which included $268 million from asbestos and environmental and $75 million from personal auto

• Commercial Lines combined ratio of 94.6 improved 0.4 point from second quarter2016 primarily due to a 1.1 point decrease in current accident year catastrophe losses; underlying combined ratio* of 90.9 increased 1.1 points from second quarter2016 primarily due to auto and property losses and higher underwriting expenses

• Personal Lines combined ratio of 101.4 improved 11.2 points from second quarter2016 due to improved auto results and lower current accident year catastrophes; underlying combined ratio of 92.6 improved 1.6 points from second quarter2016

• Group Benefits net income of $69 million and core earnings of $61 million rose 25% and 33%, respectively, over second quarter 2016 due to improved group life and group disability loss experience and premium growth

HARTFORD, Conn., July 27, 2017 – The Hartford (NYSE:HIG) reported a net loss of $40 million and core earnings of $389 million for second quarter2017 compared with net income of $216 million and core earnings of $122 million in second quarter 2016. Second quarter2017 net loss per diluted share

was $0.11 compared with second quarter2016 net income per diluted share of $0.54. Core earnings per diluted share in second quarter2017 rose to $1.04 compared with $0.31 in second quarter2016. Weighted average diluted common shares outstanding decreased 7% in second quarter2017 from

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second quarter2016 primarily due to the company's repurchase of 27.9 million common shares for a total of $1.3 billion over the last four quarters.

* 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 Hartford’s second quarter core earnings improved significantly over 2016, with favorable contributions from all segments, including Personal Lines,” said The Hartford’s Chairman and CEO Christopher Swift. “Our capital generation and financial flexibility remain robust, supporting the return in the first half of 2017 of nearly $820 million to shareholders, including share repurchases and dividends, and the repayment of $416 million of debt. With strong results over the past year, our core earnings return on equity* rose to 9.3% and to 11.3% excluding Talcott Resolution.”

The Hartford’s President Doug Elliot said, "Our property and casualty and Group Benefits results demonstrate our consistent and disciplined execution. Commercial Lines margins remain very strong with an underlying combined ratio of 90.9 and Group Benefits had an excellent core earnings margin of 6.7%. The combined ratio for Personal Lines was materially better than second quarter 2016, which included the impact of unfavorable development, and the underlying combined ratio also improved over the prior year. Results across all our businesses this quarter benefited from our continued focus on underwriting and pricing rigor in markets which remain competitive.”

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FINANCIAL RESULTS SUMMARY

($ in millions except per share data)	Three Months Ended
	Jun 30 2017	Jun 30 2016	Change
Net income (loss) by segment:
Commercial Lines	$258	$237	9%
Personal Lines	24	(50)	NM
P&C Other Operations	20	(154)	NM
Property & Casualty	302	33	NM
Group Benefits	69	55	25%
Mutual Funds	24	20	20%
Talcott Resolution	105	104	1%
Corporate	(540)	4	NM
Net income (loss)	$(40)	$216	NM
Less: Unlock benefit, before tax	20	18	11%
Less: Net realized capital gains after deferred policy acquisition costs (DAC), excluded from core earnings, before tax	75	51	47%
Less: Pension settlement, before tax	(750)	—	NM
Less: Income tax benefit, including amounts related to before tax items excluded from core earnings	226	25	NM
Core earnings	$389	$122	NM
Weighted average diluted common shares outstanding	372.3	398.6	(7)%
Net income (loss) per diluted share2	$(0.11)	$0.54	NM
Core earnings per diluted share²	$1.04	$0.31	NM
Select financial measures:
Common shares outstanding and dilutive potential common shares	369.1	394.7	(6)%
Book value per diluted share	$46.84	$47.02	—%
Book value per diluted share (ex. AOCI)	$45.50	$44.74	2%
ROE - Net income3	3.9%	7.3%	(3.4)
ROE - Net income, excluding Talcott Resolution3	4.2%	10.5%	(6.3)
ROE - Core earnings3	9.3%	7.4%	1.9
ROE - Core earnings, excluding Talcott Resolution*3	11.3%	8.9%	2.4
Select operating data:
Net investment income	$715	$735	(3)%
Annualized investment yield, before tax, excluding LPs*	4.1%	4.1%	—
P&C net investment income	$302	$292	3%
P&C annualized investment yield, before tax, excluding LPs*	3.8%	3.8%	—

[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, respectively; for ROE - Net Income, the denominator is stockholders’ equity including AOCI; for ROE - Core Earnings, the denominator is stockholders’ equity excluding AOCI

The second quarter2017 net loss of $40 million was principally due to a pension settlement charge of $488 million, after tax, or $1.31 per diluted share that was announced in June 2017. The charge was due to the purchase of a group annuity contract that transfers responsibility to Prudential

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Financial, Inc. (NYSE: PRU) for about 29% of the company's U.S. defined benefit pension plan obligations.

Excluding this charge, the improvement in second quarter2017 results compared with second quarter2016 net income of $216 million was largely due to net unfavorable PYD in second quarter2016 of $228 million, after tax, including $49 million, after tax, for personal auto liability and $174 million, after tax, for asbestos and environmental exposures, compared with favorable PYD of $7 million, after tax, in second quarter2017. In January 2017, the company announced that it had purchased from National Indemnity Company, a subsidiary of Berkshire Hathaway (NYSE: BRK), an aggregate excess of loss reinsurance agreement that provides up to $1.5 billion of potential adverse loss development reinsurance on the company's asbestos and environmental reserves. Beginning in 2017, the company's annual ground-up asbestos and environmental reserve study will be conducted in the fourth quarter.

Core earnings for second quarter2017 totaled $389 million, up significantly from $122 million in second quarter2016 due to the impact of $228 million, after tax, of unfavorable PYD on second quarter2016. Excluding the impact of PYD, the improvement in second quarter2017 core earnings compared with second quarter2016 was principally due to lower catastrophe losses and higher Group Benefits core earnings. Current accident year catastrophe losses totaled $101 million, after tax, in second quarter2017, down 16% from $120 million, after tax, in second quarter2016. Group Benefits core earnings rose 33% to $61 million from $46 million due to lower losses in both group life and group disability as well as higher premiums compared with second quarter 2016.

Consolidated net investment income declined 3% to $715 million, before tax, in second quarter2017 compared with $735 million, before tax, in second quarter2016 as a result of lower invested assets, principally due to the runoff of Talcott Resolution, partially offset by higher investment income on limited partnerships and other alternative investments (LPs). Investment income from LPs totaled $48 million, before tax, or $32 million, after tax, in second quarter2017 compared with $40 million, before tax, or $26 million, after tax, in second quarter2016. The credit performance of the investment portfolio remained strong. Net impairment losses including mortgage loan valuation allowances totaled $12 million,before tax, up from $7 million, before tax, in second quarter2016.

Property and casualty (P&C) net investment income rose 3% to $302 million, before tax, in second quarter2017 compared with $292 million, before tax, in second quarter2016 due to higher investment income on LPs. The P&C annualized investment yield, excluding LPs, was 3.8%, the same level as second quarter 2016. P&C LP investment income totaled $32 million, before tax, up 39% from $23 million, before tax in second quarter2016, due to higher returns on private equity investments.

Return on equity (ROE) - net income was 3.9% for second quarter2017 compared with 7.3% for second quarter2016. The reduction in the ROE - net income from the prior year is principally due to the fourth quarter 2016 charge for the aggregate excess of loss reinsurance agreement on asbestos and environmental reserves and the second quarter2017 pension settlement charge, partially offset by the impact of PYD related to asbestos and environmental exposures on the prior year ROE - net income.

ROE - core earnings was 9.3% for second quarter2017 compared with 7.4% for second quarter2016. The improvement compared with the prior year is primarily due to the impact of second quarter 2016 unfavorable PYD related to asbestos and environmental exposures and Personal Lines auto.

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Book value per diluted share as of June 30, 2017 rose 6% compared with Dec. 31, 2016 to $46.84. The increase in book value per diluted share reflects a 2% increase in stockholders' equity and 3% decrease in common shares outstanding and dilutive potential common shares. The increase in stockholders' equity was principally due to first half net income of $338 million and an increase in accumulated other comprehensive income (AOCI), including the impact of lower market interest rates and tighter credit spreads since Dec. 31, 2016 on the fair value of the company's fixed maturity investment portfolio. Excluding AOCI, book value per diluted share as of June 30, 2017 increased 1% to $45.50 from $45.24 as of Dec. 31, 2016 due to the reduction in common shares outstanding and dilutive potential common shares as a result of share repurchases.

During second quarter2017, the company repurchased 6.6 million common shares for approximately $325 million. As of July 25, 2017, the company had repurchased 1.6 million common shares for $85 million in third quarter 2017, leaving $565 million available under the $1.3 billion 2017 share repurchase authorization. During second quarter2017, $86 million of common dividends were paid to shareholders for a total return of capital to shareholders of $411 million during the quarter.

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SECOND QUARTER 2017 SEGMENT FINANCIAL RESULTS SUMMARY

	Three Months Ended
($ in millions)	Jun 30 2017	Jun 30 2016	Change
Core earnings (losses)
P&C segments:
Commercial Lines	$238	$221	8%
Personal Lines	20	(52)	NM
P&C Other Operations	18	(154)	NM
Property & Casualty	276	15	NM
Group Benefits	61	46	33%
Mutual Funds	24	20	20%
Sub-total	361	81	NM
Talcott Resolution	80	91	(12)%
Corporate	(52)	(50)	(4)%
Total	$389	$122	NM
Select operating data:
Commercial Lines
Combined ratio	94.6	95.0	(0.4)
Impact of catastrophes and PYD on combined ratio	3.7	5.2	(1.5)
Underlying combined ratio	90.9	89.8	1.1
Personal Lines
Combined ratio	101.4	112.6	(11.2)
Impact of catastrophes and PYD on combined ratio	8.8	18.5	(9.7)
Underlying combined ratio	92.6	94.2	(1.6)
Group Benefits
Loss ratio	76.1%	78.5%	(2.4)
Expense ratio	24.5%	25.1%	(0.6)
Net income margin	7.5%	6.0%	1.5
Core earnings margin	6.7%	5.1%	1.6
Mutual Funds
Mutual Funds net flows	$1,314	$(419)	NM
Total Mutual Funds segment assets under management	$107,679	$91,423	18%

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Commercial Lines

• Commercial Lines net income of $258 million and core earnings of $238 million rose 9% and 8%, respectively, compared with second quarter2016 primarily due to lower catastrophe losses and higher net investment income on LPs, partially offset by decreased current accident year underwriting results, excluding catastrophes.

• Current accident year catastrophe losses totaled $63 million, before tax, compared with $80 million, before tax, in second quarter2016.

• There was no net PYD in second quarter 2017 compared with unfavorable PYD of $6 million, before tax, in second quarter2016.

• The Commercial Lines combined ratio improved 0.4 point from second quarter2016 to 94.6 principally due to lower catastrophes and PYD, which totaled 3.7 points in second quarter 2017 compared with 5.2 points in second quarter2016, largely offset by lower underlying underwriting results.

• The Commercial Lines underlying combined ratio was 90.9, an increase of 1.1 points from second quarter2016 primarily due to higher current accident year auto and property losses and higher expenses.

Personal Lines

• Personal Lines net income of $24 million and core earnings of $20 million improved materially from a net loss of $50 million and a core loss of $52 million, respectively, in second quarter2016 due to a favorable change in PYD, lower catastrophe losses and improved underlying underwriting results.

• Second quarter 2016 included net unfavorable PYD of $76 million, before tax, principally from auto liability, compared with net favorable development of $10 million, before tax, in second quarter 2017, largely from prior accident year catastrophe losses.

• Current accident year catastrophe losses were $92 million, before tax, down from $104 million, before tax, in second quarter2016.

• The Personal Lines combined ratio was 101.4, including 8.8 points from catastrophes and PYD, down from 112.6, including 18.5 points from catastrophes and PYD, in second quarter2016.

• The Personal Lines underlying combined ratio was 92.6, an improvement of 1.6 points from second quarter2016 driven by improved auto losses and lower expenses due to reduced AARP direct marketing and agency commissions, partially offset by higher homeowners losses due to elevated non-catastrophe weather losses.

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• The auto combined ratio improved 16.2 points to 100.8 from 117.0 in second quarter2016, which included 10.8 points of unfavorable PYD compared with 0.6 point of favorable PYD in second quarter 2017. The underlying combined ratio for auto improved 3.6 points to 99.1 compared with 102.7 reported in second quarter2016, which included unfavorable loss development on the first accident quarter of 2016. Taking this, as well as subsequent unfavorable development of accident year 2016 into account, the second quarter 2017 auto underlying combined ratio improved by 2.4 points compared with second quarter 2016.

• The homeowners combined ratio rose 1.0 point to 103.4 from 102.4 in second quarter2016 as favorable PYD in second quarter 2017, largely from catastrophe losses, was more than offset by higher non-catastrophe weather losses compared with second quarter2016. The higher non-catastrophe weather losses were also the primary contributor to the 3.4 point deterioration in the homeowners underlying combined ratio to 77.6 from 74.2 in second quarter2016.

Group Benefits

• Group Benefits net income of $69 million increased 25% from $55 million in second quarter2016 and core earnings rose 33% from $46 million in second quarter2016 to $61 million. The increases were driven by better group life and group disability loss experience combined with 2% premium growth as a result of strong persistency.

• The total loss ratio of 76.1% improved 2.4 points compared with second quarter2016 reflecting a 3.9 point improvement in group life due to elevated severity in second quarter 2016 and a 1.0 point improvement in group disability principally due to strong recoveries and continued favorable new claims incidence trends.

Mutual Funds

• Mutual Funds net income and core earnings of $24 million each rose 20% compared with second quarter2016 due to the 18% increase in assets under management (AUM) over the past year.

• Total AUM rose to $107.7 billion, up 18% from June 30, 2016, primarily due to positive net flows and market appreciation, partially offset by the continued runoff of Talcott Resolution AUM. Excluding Talcott Resolution AUM, Mutual Fund positive net flows totaled $1.3 billion due to strong sales in second quarter 2017 compared with net outflows of $419 million in second quarter2016.

• Investment performance remains strong with 59%, 62% and 77% of funds beating peers on a 1-, 3- and 5-year basis, respectively.

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Talcott Resolution

• Talcott Resolution net income was $105 million compared with $104 million in second quarter2016 due to higher net realized capital gains, offset by a decline in core earnings.

• Core earnings declined 12% to $80 million, principally due to lower net investment income due to the runoff of the block, partially offset by lower insurance operating costs.

• Individual variable annuity and fixed annuity contract counts at June 30, 2017, declined 10% and 6%, respectively, compared with June 30, 2016.

Corporate

• Corporate net loss of $540 million, including the $488 million, after tax, pension settlement charge, compared with net income of $4 millionin second quarter2016, which included a $53 million tax benefit from the reduction in a valuation allowance for capital loss carryovers.

• Core losses of $52 million increased by $2 million due to the favorable impact on second quarter 2016 insurance operating costs and other expenses of the reversal of a legal accrual, partially offset by lower interest expense in second quarter 2017 as a result of debt repayments over the past year.

CONFERENCE CALL

The Hartford will discuss its second quarter2017 financial results on a conference call at 9 a.m. EDT on Friday, July 28, 2017. The call can be accessed via a live listen-only webcast or as a replay through the investor relations section of The Hartford's website at https://ir.thehartford.com. The replay will be accessible approximately one hour after the conclusion of the call and be available along with a transcript of the event for at least one year.

More detailed financial information can be found in The Hartford's Investor Financial Supplement for June 30, 2017, and the Second Quarter2017 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

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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 June 30, 2017
($ in millions)
	Commercial Lines			Personal Lines			P&C Other Ops			Group Benefits			Mutual Funds		Talcott Resolution			Corporate			Consolidated
Earned premiums	$	1,720		$	930		$	—		$	805		$	—	$	35		$	—		$	3,490
Fee income	9			11			—			19			201		225			1			466
Net investment income	240			35			27			88			—		320			5			715
Other revenues	—			23			—			—			—		—			—			23
Net realized capital gains (losses)	32			5			5			13			—		22			(2		)	75
Total revenues	2,001			1,004			32			925			201		602			4			4,769
Benefits, losses, and loss adjustment expenses	1,057			734			—			628			—		348			—			2,767
Amortization of DAC	252			79			—			8			5		24			—			368
Insurance operating costs and other expenses	326			161			3			193			158		96			5			942
Pension settlement	—			—			—			—			—		—			750			750
Interest expense	—			—			—			—			—		—			81			81
Total benefits and expenses	1,635			974			3			829			163		468			836			4,908
Income (loss) before income taxes	366			30			29			96			38		134			(832		)	(139		)
Income tax expense (benefit)	108			6			9			27			14		29			(292		)	(99		)
Net income (loss)	258			24			20			69			24		105			(540		)	(40		)
Less: Unlock charge, before tax	—			—			—			—			—		20			—			20
Less: Net realized capital gains (losses) after DAC, excluded from core earnings, before tax	32			5			4			13			—		22			(1		)	75
Less: Pension settlement, before tax																		(750		)	(750		)
Less: Income tax benefit (expense)	(12		)	(1		)	(2		)	(5		)	—		(17		)	263			226
Core earnings (losses)	$	238		$	20		$	18		$	61		$	24	$	80		$	(52	)	$	389

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATING INCOME STATEMENTS
Three Months Ended June 30, 2016
($ in millions)
	Commercial Lines			Personal Lines			P&C Other Ops			Group Benefits			Mutual Funds		Talcott Resolution			Corporate			Consolidated
Earned premiums	$	1,650		$	976		$	—		$	790		$	—	$	28		$	—		$	3,444
Fee income	9			10			—			18			172		231			1			441
Net investment income	226			33			33			88			1		348			6			735
Other revenues	—			23			—			—			—		—			—			23
Net realized capital gains (losses)	25			4			6			16			—		3			(1		)	53
Total revenues	1,910			1,046			39			912			173		610			6			4,696
Benefits, losses, and loss adjustment expenses	1,024			869			269			634			—		346			—			3,142
Amortization of DAC	242			89			—			7			6		24			—			368
Insurance operating costs and other expenses	311			169			6			196			135		115			(1		)	931
Interest expense	—			—			—			—			—		—			85			85
Total benefits and expenses	1,577			1,127			275			837			141		485			84			4,526
Income (loss) before income taxes	333			(81		)	(236		)	75			32		125			(78		)	170
Income tax expense (benefit)	96			(31		)	(82		)	20			12		21			(82		)	(46		)
Net income (loss)	237			(50		)	(154		)	55			20		104			4			216
Less: Unlock charge, before tax	—			—			—			—			—		18			—			18
Less: Net realized capital gains (losses) after DAC, excluded from core earnings, before tax	25			4			6			15			—		3			(2		)	51
Less: Restructuring and other costs, before tax	—			—						—			—		—			—			—
Less: Loss on extinguishment of debt, before tax	—			—			—			—			—		—			—			—
Less: Loss on reinsurance transactions, before tax	—			—			—			—			—		—			—			—
Less: Income tax benefit (expense)	(9		)	(2		)	(6		)	(6		)	—		(8		)	56			25
Core earnings (losses)	$	221		$	(52	)	$	(154	)	$	46		$	20	$	91		$	(50	)	$	122

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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 forsecond quarter2017, which is available on The Hartford's website,https://ir.thehartford.com.

Annualized investment yield, excluding limited partnershipsis the annualized net investment income excluding limited partnerships and other alternative investments divided by the monthly average invested assets at amortized cost, excluding repurchase agreement and securities lending collateral, derivatives book value, and limited partnerships and other alternative investments.

	Three Months Ended
	Jun 30 2017		Jun 30 2016		Jun 30 2017		Jun 30 2016
	Consolidated				P&C
Annualized investment yield	4.2	%	4.2	%	4.1	%	3.9	%
Annualized investment yield on limited partnerships and other alternative investments	8.0	%	6.1	%	9.6	%	6.9	%
Annualized investment yield excluding limited partnerships and other alternative investments	4.1	%	4.1	%	3.8	%	3.8	%

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
	Jun 30 2017	Dec 31 2016	Change
Book value per diluted share, including AOCI	$46.84	$44.35	6%
Less: Per diluted share impact of AOCI	$1.34	$(0.89)	NM
Book value per diluted share, excluding AOCI	$45.50	$45.24	1%

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

13

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. 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 June 30, 2017 and 2016, 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 June 30, 2017.

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 June 30, 2017 and 2016, is set forth below.

	Three Months Ended
Margin	Jun 30 2017	Jun 30 2016	Change
Net income margin	7.5%	6.0%	1.5
Less: Effect of net realized capital gains, net of tax, on after tax margin	0.8%	0.9%	(0.1)
Core earnings margin	6.7%	5.1%	1.6

14

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 June 30, 2017 and 2016 is provided in the table below.

	Three Months Ended
	Jun 30 2017	Jun 30 2016	Change
PER SHARE DATA
Diluted earnings (losses) per common share:
Net income (loss) per share	$(0.11)	$0.54	NM
Less: Unlock benefit, before tax	0.05	0.05	—
Less: Net realized capital losses after DAC, excluded from core earnings, before tax	0.20	0.13	54%
Less: Pension settlement, before tax	(2.01)	—	NM
Less: Income tax benefit on items excluded from core earnings	0.61	0.05	NM
Less: Use of weighted average shares in denominator*	—	—	NM
Core earnings per share	$1.04	$0.31	NM

* In the three months ended June 30, 2017, net loss per share uses weighted average basic shares outstanding whereas core earnings per share uses weighted average diluted share outstanding.

Net investment income, excluding limited partnershipsis the amount of net investment income earned from invested assets excluding the net investment income related to limited partnerships and other alternative investments.

	Three Months Ended
	Jun 30 2017		Jun 30 2016		Jun 30 2017		Jun 30 2016
	Consolidated				P&C
Total net investment income	$	715	$	735	$	302	$	292
Limited partnerships and other alternative assets	48		40		32		23
Net Investment Income excluding limited partnerships	$	667	$	695	$	270	$	269

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

15

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. 

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

	Last Twelve Months Ended
	Jun 30 2017	Jun 30 2016
ROE - Net income	3.9%	7.3%
Less: Unlock benefit, before tax	—	0.2
Less: Net realized capital losses after DAC, excluded from core earnings, before tax	(0.6)	(1.5)
Less: Restructuring and other costs, before tax	—	—
Less: Loss on extinguishment of debt, before tax	—	—
Less: (Loss) gain on reinsurance transactions, before tax	(3.6)	0.1
Less: Pension settlement, before tax	(4.2)	—
Less: Income tax benefit on items not included in core earnings	3.3	1.4
Less: Impact of AOCI, excluded from Core ROE	(0.3)	(0.3)
ROE - Core earnings	9.3%	7.4%

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
	Jun 30 2017	Jun 30 2016
ROE - Net income (excluding Talcott Resolution)	4.2%	10.5%
Less: Net realized capital losses after DAC, excluded from core earnings, before tax	(0.4)	(0.2)
Less: Restructuring and other costs, before tax	—	(0.1)
Less: Loss on extinguishment of debt, before tax	—	—
Less: Loss on reinsurance transaction, before tax	(5.7)	—
Less: Pension settlement, before tax	(6.6)	—
Less: Income tax benefit on items not included in core earnings	5.5	1.6
Less: Income from discontinued operations, after tax	—	0.1
Less: Impact of AOCI, excluded from Core ROE	0.1	0.2
ROE - Core earnings (excluding Talcott Resolution)	11.3%	8.9%

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 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

16

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 heading "Second Quarter 2017 Segment Financial Results Summary."

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 June 30, 2017 and 2016, is set forth in the Investor Financial Supplement for quarter ended June 30, 2017, which is available on The Hartford's website, https://ir.thehartford.com.

SAFE HARBOR STATEMENT

Some of the statements in this release should be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “projects” and similar references to the future. Examples of forward-looking statements include, but are not limited to, statements the company makes regarding future results of operations. The Hartford cautions investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Investors should consider the important risks and uncertainties that may cause actual results to differ. These important risks and uncertainties include the risks and uncertainties identified below, as well as factors described in such forward-looking statements or in The Hartford's 2016 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, Political and Global Market Conditions: challenges related to the company’s current operating environment, including global political, economic and market conditions, and the effect of financial market disruptions, economic downturns or other potentially adverse macroeconomic developments on the demand for our products, returns in our investment portfolios and the hedging costs associated with our run-off annuity block; financial risk related to the continued reinvestment of our investment portfolios and performance of our hedge program for our run-off annuity block; market risks associated with our business, including changes in credit spreads, equity prices, interest rates, inflation rate, market volatility and foreign exchange rates; the impact on our investment portfolio if our investment portfolio is concentrated in any particular segment of the economy;

Insurance Industry and Product-Related Risks:the possibility of unfavorable loss development including with respect to long-tailed exposures; the possibility of a pandemic, earthquake, or other natural or man-made disaster that may adversely affect our businesses; weather and other natural physical events, including the severity and frequency of storms, hail, winter storms, hurricanes and tropical storms, as well as climate change and its potential impact on weather patterns; the possible occurrence of terrorist attacks and the company’s inability to contain its exposure as a result of, among other factors, the inability to exclude coverage for terrorist attacks from workers' compensation policies and limitations on reinsurance coverage from the federal government under applicable laws; the company’s ability to effectively price its property and casualty policies, including its ability to obtain regulatory consents to pricing actions or to non-renewal or withdrawal of certain product lines; actions by competitors that may be larger or have greater financial resources than we do; technological changes, such as usage-based methods of determining premiums, advancements 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 uncertain effects of emerging claim and coverage issues; volatility in our statutory and United States ("U.S.") Generally Accepted Accounting Principles ("GAAP") earnings and potential material changes to our results resulting from our risk management program to emphasize protection of economic value;

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;

Risks Relating to Estimates, Assumptions and Valuations:risk associated with the use of analytical models in making decisions in key areas such as underwriting, capital management, hedging, reserving, and catastrophe risk management; the potential for differing interpretations of the methodologies, estimations and assumptions that underlie the company’s fair value estimates for its investments and the evaluation of other-than-temporary impairments on available-for-sale securities; the potential for further acceleration of deferred policy acquisition cost amortization and an increase in reserve for certain guaranteed benefits in our variable annuities; the potential for further impairments of our goodwill or the potential for changes in valuation allowances against deferred tax assets; the significant uncertainties that limit our ability to estimate the ultimate reserves necessary for asbestos and environmental claims;

Strategic and Operational Risks:risks associated with the run-off of our Talcott Resolution business; the company’s ability to maintain the availability of its systems and safeguard the security of its data in the event of a disaster, cyber or other information security incident or other unanticipated event; the risks, challenges and uncertainties associated with our capital management plan, expense reduction initiatives and other actions, which may include acquisitions, divestitures or restructurings; the potential for difficulties arising from outsourcing and similar third-party relationships; the company’s ability to protect its intellectual property and defend against claims of infringement;

Regulatory and Legal Risks:the cost and other potential effects of increased 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 requirements that could delay, deter or prevent a takeover attempt that shareholders might consider in their best interests; and the impact of potential changes in accounting principles and related financial reporting requirements.

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

17

EX-99.2

INVESTOR FINANCIAL SUPPLEMENT

June 30, 2017

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

	As of July 25, 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 505000	462 South 4th Street, Suite 1600
	Louisville, KY 40233	Louisville, KY 40202

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 Income Statements	8
	Property & Casualty Underwriting Ratios and Results	9
	Commercial Lines Income Statements	10
	Commercial Lines Underwriting Ratios	12
	Commercial Lines Supplemental Data	13
	Personal Lines Income Statements	14
	Personal Lines Underwriting Ratios	16
	Personal Lines Supplemental Data	17
	P&C Other Operations Income Statements	20
GROUP BENEFITS	Income Statements	21
	Supplemental Data	22
MUTUAL FUNDS	Income Statements	23
	Asset Value Rollforward - Assets Under Management By Asset Class	24
TALCOTT RESOLUTION	Financial Highlights	25
	Individual Annuity - Supplemental Data	26
	Individual Annuity - Account Value Rollforward	27
CORPORATE	Income Statements	28
INVESTMENTS	Investment Earnings Before Tax - Consolidated	29
	Investment Earnings Before Tax - Property & Casualty	30
	Net Investment Income	31
	Components of Net Realized Capital Gains (Losses)	32
	Composition of Invested Assets	33
	Invested Asset Exposures	34
APPENDIX	Basis of Presentation and Definitions	35
	Discussion of Non-GAAP and Other Financial Measures	36

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATED FINANCIAL RESULTS

	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Jun 30 2017		Jun 30 2016
HIGHLIGHTS
Net income (loss)	$	(40	)	$	378		$	(81	)	$	438		$	216		$	323		$	338	$	539
Core earnings *	$	389		$	378		$	415		$	413		$	122		$	385		$	767	$	507
Total revenues	$	4,769		$	4,655		$	4,557		$	4,715		$	4,696		$	4,410		$	9,424	$	9,106
Total assets	$225,863			$225,388			$223,432			$228,430			$227,616			$227,493
PER SHARE AND SHARES DATA
Basic earnings per common share
Net income (loss) [1]	$	(0.11	)	$	1.02		$	(0.22	)	$	1.14		$	0.55		$	0.81		$	0.92	$	1.36
Core earnings *	$	1.06		$	1.02		$	1.10		$	1.08		$	0.31		$	0.97		$	2.08	$	1.28
Diluted earnings per common share
Net income (loss)	$	(0.11	)	$	1.00		$	(0.22	)	$	1.12		$	0.54		$	0.79		$	0.90	$	1.34
Core earnings *	$	1.04		$	1.00		$	1.08		$	1.06		$	0.31		$	0.95		$	2.04	$	1.26
Weighted average common shares outstanding (basic)	366.0			371.4			376.6			383.8			391.8			398.5			368.7		395.2
Dilutive effect of stock compensation	3.8			4.2			3.7			3.2			3.2			4.2			4.0		3.6
Dilutive effect of warrants	2.5			3.0			3.5			3.5			3.6			3.6			2.8		3.6
Weighted average common shares outstanding and dilutive potential common shares (diluted)	372.3			378.6			383.8			390.5			398.6			406.3			375.5		402.4
Common shares outstanding	362.8			369.2			373.9			379.6			387.9			395.6
Book value per common share	$	47.65		$	46.07		$	45.21		$	49.15		$	47.84		$	45.78
Per common share impact of accumulated other comprehensive income [2]	$	1.36		$	(0.56	)	$	(0.90	)	$	2.60		$	2.32		$	0.64
Book value per common share (excluding AOCI) *	$	46.29		$	46.63		$	46.11		$	46.55		$	45.52		$	45.14
Book value per diluted share	$	46.84		$	45.25		$	44.35		$	48.30		$	47.02		$	44.90
Per diluted share impact of AOCI	$	1.34		$	(0.55	)	$	(0.89	)	$	2.56		$	2.28		$	0.63
Book value per diluted share (excluding AOCI) *	$	45.50		$	45.80		$	45.24		$	45.74		$	44.74		$	44.27
Common shares outstanding and dilutive potential common shares	369.1			375.9			381.1			386.3			394.7			403.4
RETURN ON EQUITY ("ROE") [4]
ROE - Net income (net income last 12 months to stockholders' equity including AOCI)	3.9		%	5.4		%	5.2		%	7.6		%	7.3		%	8.3		%
ROE - Net income, excluding Talcott Resolution [3]	4.2		%	6.5		%	6.8		%	10.8		%	10.5		%	11.0		%
ROE - Core earnings (core earnings last 12 months to stockholders' equity excluding AOCI) *	9.3		%	7.6		%	7.6		%	7.6		%	7.4		%	8.8		%
ROE - Core earnings, excluding Talcott Resolution * [3]	11.3		%	8.6		%	8.9		%	9.1		%	8.9		%	10.3		%

[1] As a result of the net loss for the three months ended June 30, 2017, the Company was required to use basic weighted average common shares outstanding in the calculation of net loss per diluted share, since the effect of stock compensation and warrants would have been antidilutive to the calculation.

[2] 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.

[3] 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 37.

[4] For reconciliations of ROE - Net income to ROE - Core earnings, see Appendix, page 36.

* 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																		SIX MONTHS ENDED
	Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Jun 30 2017			Jun 30 2016
Earned premiums	$	3,490		$	3,473		$	3,479		$	3,484		$	3,444		$	3,404		$	6,963		$	6,848
Fee income	466			455			450			452			441			445			921			886
Net investment income	715			728			758			772			735			696			1,443			1,431
Realized capital gains (losses):
Total other-than-temporary impairment (“OTTI”) losses	(16		)	(3		)	(14		)	(15		)	(8		)	(27		)	(19		)	(35		)
OTTI losses recognized in other comprehensive income	2			2			2			1			1			4			4			5
Net OTTI losses recognized in earnings	(14		)	(1		)	(12		)	(14		)	(7		)	(23		)	(15		)	(30		)
Other net realized capital gains (losses) [1]	89			(19		)	(137		)	(3		)	60			(132		)	70			(72		)
Total net realized capital gains (losses)	75			(20		)	(149		)	(17		)	53			(155		)	55			(102		)
Other revenues	23			19			19			24			23			20			42			43
Total revenues	4,769			4,655			4,557			4,715			4,696			4,410			9,424			9,106
Benefits, losses and loss adjustment expenses	2,767			2,757			2,788			2,780			3,142			2,641			5,524			5,783
Amortization of DAC	368			363			378			403			368			374			731			742
Insurance operating costs and other expenses [2]	1,692			965			934			918			931			928			2,657			1,859
Loss on reinsurance transaction	—			—			650			—			—			—			—			—
Interest expense	81			83			82			86			85			86			164			171
Total benefits, losses and expenses	4,908			4,168			4,832			4,187			4,526			4,029			9,076			8,555
Income (loss) before income taxes	(139		)	487			(275		)	528			170			381			348			551
Income tax expense (benefit) [3] [4] [5]	(99		)	109			(194		)	90			(46		)	58			10			12
Net income (loss)	(40		)	378			(81		)	438			216			323			338			539
Less: Unlock benefit (charge), before tax	20			18			(20		)	(13		)	18			13			38			31
Less: Net realized capital gains (losses) after DAC, excluded from core earnings, before tax [1]	75			(20		)	(146		)	(13		)	51			(148		)	55			(97		)
Less: Loss on reinsurance transaction, before tax	—			—			(650		)	—			—			—			—			—
Less: Pension settlement, before tax	(750		)	—			—			—			—			—			(750		)	—
Less: Income tax benefit (expense) [3][4][6]	226			2			320			51			25			73			228			98
Core earnings	$	389		$	378		$	415		$	413		$	122		$	385		$	767		$	507

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

[2] The three months ended June 30, 2017 included a pension settlement charge of $750, before tax, for the purchase of a group annuity contract to transfer approximately $1.6 billion of certain U.S. qualified pension plan liabilities to a third-party.

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

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

[5] The three months ended June 30, 2017 included a federal income tax benefit of $262 related to the pension settlement charge.

[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																		SIX MONTHS ENDED
	Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Jun 30 2017			Jun 30 2016
Net income (loss):
Commercial Lines	$	258		$	231		$	264		$	268		$	237		$	225		$	489		$	462
Personal Lines	24			33			(15		)	33			(50		)	23			57			(27		)
P&C Other Operations	20			24			(423		)	31			(154		)	17			44			(137		)
Property & Casualty ("P&C")	302			288			(174		)	332			33			265			590			298
Group Benefits	69			45			63			62			55			50			114			105
Mutual Funds	24			23			17			21			20			20			47			40
Sub-total	$	395		$	356		$	(94	)	$	415		$	108		$	335		$	751		$	443
Talcott Resolution	105			68			45			78			104			17			173			121
Corporate	(540		)	(46		)	(32		)	(55		)	4			(29		)	(586		)	(25		)
Net income (loss)	$	(40	)	$	378		$	(81	)	$	438		$	216		$	323		$	338		$	539
Core earnings (losses):
Commercial Lines	$	238		$	224		$	274		$	243		$	221		$	246		$	462		$	467
Personal Lines	20			32			(14		)	29			(52		)	26			52			(26		)
P&C Other Operations	18			21			15			19			(154		)	19			39			(135		)
P&C	$	276		$	277		$	275		$	291		$	15		$	291		$	553		$	306
Group Benefits	61			40			59			51			46			48			101			94
Mutual Funds	24			23			17			21			20			20			47			40
Sub-total	361			340			351			363			81			359			701			440
Talcott Resolution	80			83			111			104			91			77			163			168
Corporate	(52		)	(45		)	(47		)	(54		)	(50		)	(51		)	(97		)	(101		)
Core earnings	$	389		$	378		$	415		$	413		$	122		$	385		$	767		$	507

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATING BALANCE SHEETS

	PROPERTY & CASUALTY				GROUP BENEFITS						MUTUAL FUNDS				TALCOTT RESOLUTION				CORPORATE						CONSOLIDATED
	Jun 30 2017		Dec 31 2016		Jun 30 2017			Dec 31 2016			Jun 30 2017		Dec 31 2016		Jun 30 2017		Dec 31 2016		Jun 30 2017			Dec 31 2016			Jun 30 2017		Dec 31 2016
Investments
Fixed maturities, available-for-sale, at fair value	$	25,714	$	24,386	$	7,285		$	6,931		$	35	$	21	$	24,113	$	23,813	$	687		$	852		$	57,834	$	56,003
Fixed maturities, at fair value using the fair value option	66		102		23			109			—		—		57		82		—			—			146		293
Equity securities, available-for-sale, at fair value	715		794		38			10			—		—		153		151		149			142			1,055		1,097
Mortgage loans	2,163		2,015		874			871			—		—		2,759		2,811		—			—			5,796		5,697
Policy loans, at outstanding balance	—		—		1			1			—		—		1,432		1,443		—			—			1,433		1,444
Limited partnerships and other alternative investments	1,330		1,337		197			190			—		—		918		929		—			—			2,445		2,456
Other investments	106		103		2			4			1		—		245		295		1			1			355		403
Short-term investments	1,573		1,162		423			223			173		162		2,038		1,366		509			331			4,716		3,244
Total investments	$	31,667	$	29,899	$	8,843		$	8,339		$	209	$	183	$	31,715	$	30,890	$	1,346		$	1,326		$	73,780	$	70,637
Cash	88		298		8			25			5		5		260		554		1			—			362		882
Premiums receivable and agents’ balances	3,504		3,388		341			342			—		—		1		1		—			—			3,846		3,731
Reinsurance recoverables	2,350		2,373		565			574			—		—		20,350		20,364		—			—			23,265		23,311
DAC	594		591		43			42			11		12		1,000		1,066		—			—			1,648		1,711
Deferred income taxes	276		517		(167		)	(111		)	7		6		1,097		1,206		1,655			1,663			2,868		3,281
Goodwill	157		157		—			—			180		180		—		—		230			230			567		567
Property and equipment, net	844		859		52			54			—		—		69		69		9			9			974		991
Other assets	882		1,004		193			140			96		94		565		512		71			36			1,807		1,786
Assets held for sale [1]	—		870		—			—			—		—		—		—		—			—			—		870
Separate account assets [2]	—		—		—			—			—		—		116,746		115,665		—			—			116,746		115,665
Total assets	$	40,362	$	39,956	$	9,878		$	9,405		$	508	$	480	$	171,803	$	170,327	$	3,312		$	3,264		$	225,863	$	223,432
Unpaid losses and loss adjustment expenses	$	22,130	$	21,833	$	5,709		$	5,772		$	—	$	—	$	—	$	—	$	—		$	—		$	27,839	$	27,605
Reserves for future policy benefits	—		—		318			322			—		—		13,838		13,607		—			—			14,156		13,929
Other policyholder funds and benefits payable	—		—		584			602			—		—		29,882		30,574		—			—			30,466		31,176
Unearned premiums	5,431		5,350		33			42			—		—		109		107		—			—			5,573		5,499
Debt	—		—		—			—			—		—		142		142		4,995			4,910			5,137		5,052
Other liabilities	2,030		1,723		820			305			178		165		2,746		1,958		2,884			2,841			8,658		6,992
Liabilities held for sale [1]	—		611		—			—			—		—		—		—		—			—			—		611
Separate account liabilities	—		—		—			—			—		—		116,746		115,665		—			—			116,746		115,665
Total liabilities	$	29,591	$	29,517	$	7,464		$	7,043		$	178	$	165	$	163,463	$	162,053	$	7,879		$	7,751		$	208,575	$	206,529
Common equity, excluding AOCI	10,100		9,977		2,209			2,219			330		315		7,428		7,553		(3,273		)	(2,824		)	16,794		17,240
AOCI, after-tax	671		462		205			143			—		—		912		721		(1,294		)	(1,663		)	494		(337		)
Total stockholders’ equity	10,771		10,439		2,414			2,362			330		315		8,340		8,274		(4,567		)	(4,487		)	17,288		16,903
Total liabilities and equity	$	40,362	$	39,956	$	9,878		$	9,405		$	508	$	480	$	171,803	$	170,327	$	3,312		$	3,264		$	225,863	$	223,432

[1] Related to the Company's U.K. property and casualty run-off subsidiaries that were sold in May 2017.    

[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

	Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016
DEBT
Short-term debt	$	320		$	320		$	416		$	690		$	690		$	690
Senior notes	3,235			3,234			3,553			3,552			3,551			3,550
Junior subordinated debentures	1,582			1,583			1,083			1,083			1,083			1,083
Total debt	$	5,137		$	5,137		$	5,052		$	5,325		$	5,324		$	5,323
STOCKHOLDERS’ EQUITY
Common stockholders' equity, excluding AOCI	$	16,794		$	17,216		$	17,240		$	17,671		$	17,659		$	17,858
AOCI	494			(207		)	(337		)	987			900			254
Total stockholders’ equity	$	17,288		$	17,009		$	16,903		$	18,658		$	18,559		$	18,112
CAPITALIZATION
Total capitalization, including AOCI, after-tax	$	22,425		$	22,146		$	21,955		$	23,983		$	23,883		$	23,435
Total capitalization, excluding AOCI, after-tax	$	21,931		$	22,353		$	22,292		$	22,996		$	22,983		$	23,181
DEBT TO CAPITALIZATION RATIOS
Total debt to capitalization, including AOCI	22.9		%	23.2		%	23.0		%	22.2		%	22.3		%	22.7		%
Total debt to capitalization, excluding AOCI	23.4		%	23.0		%	22.7		%	23.2		%	23.2		%	23.0		%
Total rating agency adjusted debt to capitalization [1] [2]	25.6		%	25.5		%	25.8		%	25.8		%	25.9		%	26.4		%
FIXED CHARGE COVERAGE RATIOS
Total earnings to total fixed charges (after interest credited to contractholders) [3]	1.7:1			3.1:1			1.8:1			2.5:1			2.1:1			2.6:1
Total earnings to total fixed charges (before interest credited to contractholders) [4]	3.0:1			6.5:1			3.2:1			5.0:1			4.0:1			5.1:1

[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 $1.4 billion, $1.2 billion, $1.2 billion, $1.5 billion, $1.5 billion and $1.5 billion, as of June 30, 2017, March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016 and March 31, 2016, 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

JUNE 30, 2017

	P&C			GROUP BENEFITS			TALCOTT RESOLUTION
U.S. statutory net income [1]	$	739		$	137		$	124
U.S. statutory capital [2]	$	8,376		$	1,621		$	4,283
U.S. GAAP adjustments:
DAC	594			43			1,000
Non-admitted deferred tax assets [3]	382			28			1,441
Deferred taxes [4]	(1,108		)	(329		)	(900		)
Goodwill	107			—			—
Non-admitted assets other than deferred taxes	666			94			15
Asset valuation and interest maintenance reserve	—			194			557
Benefit reserves	(37		)	219			142
Unrealized gains on investments	975			319			1,371
Other, net	816			225			431
U.S. GAAP stockholders’ equity	$	10,771		$	2,414		$	8,340

[1] Statutory net income is for the six months ended June 30, 2017.

[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
	Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016
Fixed maturities net unrealized gain	$	1,696		$	1,355		$	1,226		$	2,418		$	2,406		$	1,780
Equities net unrealized gain	59			58			50			41			31			21
OTTI losses recognized in AOCI	(3		)	(4		)	(3		)	(5		)	(10		)	(15		)
Net gain on cash flow hedging instruments	57			58			76			172			200			184
Total net unrealized gain	$	1,809		$	1,467		$	1,349		$	2,626		$	2,627		$	1,970
Foreign currency translation adjustments	13			8			6			10			(68		)	(49		)
Pension and other postretirement adjustment	(1,328		)	(1,682		)	(1,692		)	(1,649		)	(1,659		)	(1,667		)
Total AOCI	$	494		$	(207	)	$	(337	)	$	987		$	900		$	254

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PROPERTY & CASUALTY

INCOME STATEMENTS

	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Jun 30 2017			Jun 30 2016
Written premiums	$	2,631		$	2,710		$	2,555		$	2,673		$	2,661		$	2,679		$	5,341		$	5,340
Change in unearned premium reserve	(19		)	88			(113		)	16			35			81			69			116
Earned premiums	2,650			2,622			2,668			2,657			2,626			2,598			5,272			5,224
Fee income	20			21			20			20			19			19			41			38
Losses and loss adjustment expenses
Current accident year before catastrophes	1,646			1,612			1,714			1,688			1,627			1,545			3,258			3,172
Current accident year catastrophes	155			150			61			80			184			91			305			275
Prior accident year development [1]	(10		)	12			48			25			351			33			2			384
Total losses and loss adjustment expenses	1,791			1,774			1,823			1,793			2,162			1,669			3,565			3,831
Amortization of DAC	331			330			330			329			331			331			661			662
Underwriting expenses	468			466			456			457			464			475			934			939
Dividends to policyholders	3			4			3			4			4			4			7			8
Underwriting gain (loss) *	77			69			76			94			(316		)	138			146			(178		)
Net investment income	302			310			310			305			292			272			612			564
Net realized capital gains (losses) [2]	42			17			(46		)	(3		)	35			(41		)	59			(6		)
Loss on reinsurance transaction	—			—			650			—			—			—			—			—
Net servicing and other income	4			5			6			9			5			7			9			12
Income (loss) before income taxes	425			401			(304		)	405			16			376			826			392
Income tax expense (benefit) [3]	123			113			(130		)	73			(17		)	111			236			94
Net income (loss)	302			288			(174		)	332			33			265			590			298
Less: Net realized capital gains (losses) after DAC, excluded from core earnings, before tax	41			17			(45		)	(3		)	35			(40		)	58			(5		)
Less: Loss on reinsurance transaction, before tax	—			—			(650		)	—			—			—			—			—
Less: Income tax benefit (expense) on items not included in core earnings [3]	(15		)	(6		)	246			44			(17		)	14			(21		)	(3		)
Core earnings	$	276		$	277		$	275		$	291		$	15		$	291		$	553		$	306
ROE
Net income (net income last 12 months to stockholders' equity including AOCI)	7.5		%	4.5		%	4.3		%	10.4		%	9.3		%	11.1		%
Less: Net realized capital gains (losses) after DAC, excluded from core earnings, before tax	0.1		%	—		%	(0.6		)%	—		%	(0.2		)%	(0.6		)%
Less: Loss on reinsurance transaction, before tax	(7.6		)%	(7.7		)%	(7.9		)%	—		%	—		%	—		%
Less: Income tax benefit (expense) on items not included in core earnings [3]	3.1		%	3.2		%	3.5		%	0.5		%	—		%	0.2		%
Less: Income from discontinued operations, after-tax	—		%	—		%	—		%	—		%	0.1		%	0.1		%
Less: Impact of AOCI, excluded from Core ROE	(1.2		)%	(0.6		)%	(0.6		)%	(1.1		)%	(0.9		)%	(1.3		)%
Core earnings (core earnings last 12 months to stockholders' equity excluding AOCI)	13.1		%	9.6		%	9.9		%	11.0		%	10.3		%	12.7		%

[1] The three months ended June 30, 2016 included reserve development of $268 associated with the Company's annual review of asbestos and environmental reserves. In 2017, the Company expects to perform its regular comprehensive annual review of environmental reserves in the fourth quarter. The Company has an adverse development cover in place that reinsures asbestos and environmental reserve development after December 31, 2016, subject to a limit of $1.5 billion.

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

[3] The three months ended December 31, 2016 and September 30, 2016 included federal income tax benefits on the 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														SIX MONTHS ENDED
	Jun 30 2017			Mar 31 2017		Dec 31 2016		Sept 30 2016		Jun 30 2016			Mar 31 2016		Jun 30 2017		Jun 30 2016
UNDERWRITING GAIN (LOSS)	$	77		$	69	$	76	$	94	$	(316	)	$	138	$	146	$	(178	)
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes	62.1			61.5		64.2		63.5		62.0			59.5		61.8		60.7
Current accident year catastrophes	5.8			5.7		2.3		3.0		7.0			3.5		5.8		5.3
Prior accident year development [1]	(0.4		)	0.5		1.8		0.9		13.4			1.3		—		7.4
Total losses and loss adjustment expenses	67.6			67.7		68.3		67.5		82.3			64.2		67.6		73.3
Expenses	29.4			29.6		28.7		28.8		29.6			30.3		29.5		29.9
Policyholder dividends	0.1			0.2		0.1		0.2		0.2			0.2		0.1		0.2
Combined ratio	97.1			97.4		97.2		96.5		112.0			94.7		97.2		103.4
Current accident year catastrophes and prior accident year development	5.4			6.2		4.1		3.9		20.4			4.8		5.8		12.7
Underlying combined ratio *	91.6			91.2		93.1		92.5		91.7			89.9		91.4		90.8

[1] 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																		SIX MONTHS ENDED
	Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Jun 30 2017			Jun 30 2016
Auto liability - Commercial Lines	$	—		$	20		$	38		$	18		$	(8	)	$	9		$	20		$	1
Auto liability - Personal Lines	—			—			20			—			75			65			—			140
Homeowners	—			—			(6		)	1			1			(6		)	—			(5		)
Professional and general liability	—			10			(4		)	(1		)	34			(1		)	10			33
Package business	—			—			15			(2		)	7			45			—			52
Bond	—			(10		)	(2		)	—			—			(6		)	(10		)	(6		)
Net asbestos reserves	—			—			—			—			197			—			—			197
Net environmental reserves	—			—			—			—			71			—			—			71
Workers’ compensation	—			(20		)	(32		)	(4		)	(4		)	(79		)	(20		)	(83		)
Workers' compensation discount accretion	8			8			7			7			7			7			16			14
Catastrophes	(10		)	(3		)	—			(2		)	2			(7		)	(13		)	(5		)
Uncollectible reinsurance	—			—			—			—			(30		)	—			—			(30		)
Other reserve re-estimates, net	(8		)	7			12			8			(1		)	6			(1		)	5
Total prior accident year development	$	(10	)	$	12		$	48		$	25		$	351		$	33		$	2		$	384

* 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																		SIX MONTHS ENDED
	Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Jun 30 2017			Jun 30 2016
Written premiums	$	1,706		$	1,821		$	1,664		$	1,673		$	1,669		$	1,726		$	3,527		$	3,395
Change in unearned premium reserve	(14		)	133			(37		)	(4		)	19			103			119			122
Earned premiums	1,720			1,688			1,701			1,677			1,650			1,623			3,408			3,273
Fee income	9			10			10			10			9			10			19			19
Losses and loss adjustment expenses
Current accident year before catastrophes	994			968			946			969			938			913			1,962			1,851
Current accident year catastrophes	63			71			33			43			80			44			134			124
Prior accident year development [1]	—			15			20			22			6			(20		)	15			(14		)
Total losses and loss adjustment expenses	1,057			1,054			999			1,034			1,024			937			2,111			1,961
Amortization of DAC	252			249			246			243			242			242			501			484
Underwriting expenses	324			323			315			303			307			305			647			612
Dividends to policyholders	3			4			3			4			4			4			7			8
Underwriting gain	93			68			148			103			82			145			161			227
Net servicing income	1			—			—			2			—			—			1			—
Net investment income	240			243			243			239			226			209			483			435
Net realized capital gains (losses)	32			11			(18		)	39			25			(33		)	43			(8		)
Other income (expenses)	—			1			1			(3		)	—			1			1			1
Income before income taxes	366			323			374			380			333			322			689			655
Income tax expense	108			92			110			112			96			97			200			193
Net income	258			231			264			268			237			225			489			462
Less: Net realized capital gains (losses) after DAC, excluded from core earnings, before tax	32			11			(17		)	39			25			(32		)	43			(7		)
Less: Income tax benefit (expense)	(12		)	(4		)	7			(14		)	(9		)	11			(16		)	2
Core earnings	$	238		$	224		$	274		$	243		$	221		$	246		$	462		$	467

[1] For further information, see Commercial Lines Income Statements (continued), page 11.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

INCOME STATEMENTS (CONTINUED)

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

	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Jun 30 2017			Jun 30 2016
Auto liability	$	—		$	20		$	38		$	18		$	(8	)	$	9		$	20		$	1
Professional liability	—			—			(2		)	(2		)	—			(33		)	—			(33		)
Package business	—			—			15			(2		)	7			45			—			52
General liability [a]	—			10			(2		)	1			34			32			10			66
Bond	—			(10		)	(2		)	—			—			(6		)	(10		)	(6		)
Workers’ compensation	—			(20		)	(32		)	(4		)	(4		)	(79		)	(20		)	(83		)
Workers' compensation discount accretion	8			8			7			7			7			7			16			14
Catastrophes	(2		)	—			—			(3		)	1			(2		)	(2		)	(1		)
Uncollectible reinsurance [b]	—			—			—			—			(30		)	—			—			(30		)
Other reserve re-estimates, net	(6		)	7			(2		)	7			(1		)	7			1			6
Total prior accident year development	$	—		$	15		$	20		$	22		$	6		$	(20	)	$	15		$	(14	)

[a] For the three months ended June 30, 2016, unfavorable reserve development was primarily due to indemnity losses and legal costs associated with a litigated claim for accident years 2008-2010.

[b] For the three months ended June 30, 2016, favorable reserve development was due to giving greater weight to favorable collectability experience in recent calendar periods in estimating future collections.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

UNDERWRITING RATIOS

	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Jun 30 2017			Jun 30 2016
UNDERWRITING GAIN	$	93		$	68		$	148		$	103		$	82		$	145		$	161		$	227
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes	57.8			57.3			55.6			57.8			56.8			56.3			57.6			56.6
Current accident year catastrophes	3.7			4.2			1.9			2.6			4.8			2.7			3.9			3.8
Prior accident year development	—			0.9			1.2			1.3			0.4			(1.2		)	0.4			(0.4		)
Total losses and loss adjustment expenses	61.5			62.4			58.7			61.7			62.1			57.7			61.9			59.9
Expenses	33.0			33.3			32.4			32.0			32.7			33.1			33.1			32.9
Policyholder dividends	0.2			0.2			0.2			0.2			0.2			0.2			0.2			0.2
Combined ratio	94.6			96.0			91.3			93.9			95.0			91.1			95.3			93.1
Current accident year catastrophes and prior accident year development	3.7			5.1			3.1			3.9			5.2			1.5			4.3			3.4
Underlying combined ratio	90.9			90.9			88.2			90.0			89.8			89.6			90.9			89.7
COMBINED RATIOS BY LINE OF BUSINESS
SMALL COMMERCIAL
Combined ratio	90.4			91.7			90.5			89.0			92.2			89.4			91.0			90.8
Current accident year catastrophes	3.2			4.7			1.8			1.4			5.0			3.2			4.0			4.1
Prior accident year development	—			(0.3		)	2.8			0.9			0.3			(0.5		)	(0.2		)	(0.1		)
Underlying combined ratio	87.2			87.3			86.0			86.8			86.9			86.7			87.2			86.8
MIDDLE MARKET
Combined ratio	99.8			100.4			92.0			99.4			99.8			98.3			100.1			99.1
Current accident year catastrophes	5.5			5.2			3.0			5.2			6.4			3.0			5.3			4.7
Prior accident year development	(0.5		)	1.4			0.1			1.0			1.5			3.4			0.5			2.4
Underlying combined ratio	94.9			93.8			88.9			93.1			91.9			92.0			94.3			92.0
SPECIALTY COMMERCIAL
Combined ratio	97.6			101.3			88.8			94.0			92.8			76.5			99.4			84.6
Current accident year catastrophes	0.2			—			—			0.5			0.1			—			0.1			—
Prior accident year development	1.5			3.9			(6.0		)	(0.1		)	(2.7		)	(17.8		)	2.7			(10.2		)
Underlying combined ratio	95.9			97.5			94.8			93.7			95.4			94.3			96.7			94.8

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

SUPPLEMENTAL DATA

	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Jun 30 2017			Jun 30 2016
WRITTEN PREMIUMS
Small Commercial	$	936		$	986		$	846		$	866		$	883		$	926		$	1,922		$	1,809
Middle Market	566			592			607			590			578			568			1,158			1,146
Specialty Commercial	192			232			200			207			197			222			424			419
National Accounts	71			99			81			89			79			101			170			180
Financial Products	58			61			62			62			59			60			119			119
Bond	52			53			50			51			48			44			105			92
Other Specialty	11			19			7			5			11			17			30			28
Other	12			11			11			10			11			10			23			21
Total	$	1,706		$	1,821		$	1,664		$	1,673		$	1,669		$	1,726		$	3,527		$	3,395
EARNED PREMIUMS
Small Commercial	$	914		$	890		$	894		$	880		$	854		$	839		$	1,804		$	1,693
Middle Market	587			583			590			586			584			574			1,170			1,158
Specialty Commercial	207			203			207			201			201			199			410			400
National Accounts	85			86			87			82			85			85			171			170
Financial Products	60			60			61			60			62			61			120			123
Bond	51			47			48			49			46			45			98			91
Other Specialty	11			10			11			10			8			8			21			16
Other	12			12			10			10			11			11			24			22
Total	$	1,720		$	1,688		$	1,701		$	1,677		$	1,650		$	1,623		$	3,408		$	3,273
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
New Business Premium
Small Commercial	$	147		$	154		$	145		$	146		$	139		$	146		$	301		$	285
Middle Market	$	107		$	128		$	133		$	99		$	124		$	103		$	235		$	227
Renewal Price Increases [1]
Standard Commercial Lines - Written	3.5		%	3.3		%	2.3		%	2.0		%	2.2		%	2.1		%	3.4		%	2.2		%
Standard Commercial Lines - Earned	2.7		%	2.4		%	2.3		%	2.2		%	2.4		%	2.5		%	2.6		%	2.4		%
Policy Count Retention [1]
Small Commercial [2]	83		%	85		%	85		%	85		%	84		%	84		%	84		%	84		%
Middle Market [3]	75		%	80		%	76		%	76		%	75		%	74		%	78		%	74		%
Middle Market - normalized [2]							80		%	80		%	79		%	79		%
Policies in Force (in thousands)
Small Commercial	1,278			1,281			1,280			1,279			1,253			1,245
Middle Market [1]	66			66			66			66			67			69

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

[2] Normalized 2016 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.

[3] The three months ended June 30, 2017, reflects the impact of the transfer of certain program business from standard Middle Market to Middle Market specialty. Policy count retention is 78% including the transferred business.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

INCOME STATEMENTS

	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Jun 30 2017			Jun 30 2016
Written premiums	$	925		$	889		$	892		$	1,000		$	992		$	953		$	1,814		$	1,945
Change in unearned premium reserve	(5		)	(45		)	(75		)	20			16			(22		)	(50		)	(6		)
Earned premiums	930			934			967			980			976			975			1,864			1,951
Fee income	11			11			10			10			10			9			22			19
Losses and loss adjustment expenses
Current accident year before catastrophes	652			644			768			719			689			632			1,296			1,321
Current accident year catastrophes	92			79			28			37			104			47			171			151
Prior accident year development [1]	(10		)	(4		)	20			3			76			52			(14		)	128
Total losses and loss adjustment expenses	734			719			816			759			869			731			1,453			1,600
Amortization of DAC	79			81			84			86			89			89			160			178
Underwriting expenses	141			138			142			147			151			163			279			314
Underwriting gain (loss)	(13		)	7			(65		)	(2		)	(123		)	1			(6		)	(122		)
Net servicing income	4			3			5			6			5			4			7			9
Net investment income	35			36			36			35			33			31			71			64
Net realized capital gains (losses)	5			2			(2		)	5			4			(5		)	7			(1		)
Other income (expense)	(1		)	(1		)	(2		)	2			—			—			(2		)	—
Income (loss) before income taxes	30			47			(28		)	46			(81		)	31			77			(50		)
Income tax expense (benefit)	6			14			(13		)	13			(31		)	8			20			(23		)
Net income (loss)	24			33			(15		)	33			(50		)	23			57			(27		)
Less: Net realized capital gains (losses), after DAC, excluded from core earnings, before tax	5			2			(2		)	5			4			(5		)	7			(1		)
Less: Income tax benefit (expense)	(1		)	(1		)	1			(1		)	(2		)	2			(2		)	—
Core earnings (losses)	$	20		$	32		$	(14	)	$	29		$	(52	)	$	26		$	52		$	(26	)

[1] For further information, see Personal Lines Income Statements (continued), page 15.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

INCOME STATEMENTS (CONTINUED)

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

	THREE MONTHS ENDED																	SIX MONTHS ENDED
	Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016		Jun 30 2016			Mar 31 2016			Jun 30 2017			Jun 30 2016
Auto liability [a] [b]	$	—		$	—		$	20		$	—	$	75		$	65		$	—		$	140
Homeowners	—			—			(6		)	1		1			(6		)	—			(5		)
Catastrophes	(8		)	(3		)	—			1		1			(5		)	(11		)	(4		)
Other reserve re-estimates, net	(2		)	(1		)	6			1		(1		)	(2		)	(3		)	(3		)
Total prior accident year development	$	(10	)	$	(4	)	$	20		$	3	$	76		$	52		$	(14	)	$	128

[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.     

[b] 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																		SIX MONTHS ENDED
	Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Jun 30 2017			Jun 30 2016
UNDERWRITING GAIN (LOSS)	$	(13	)	$	7		$	(65	)	$	(2	)	$	(123	)	$	1		$	(6	)	$	(122	)
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes	70.1			69.0			79.4			73.4			70.6			64.8			69.5			67.7
Current accident year catastrophes	9.9			8.5			2.9			3.8			10.7			4.8			9.2			7.7
Prior accident year development	(1.1		)	(0.4		)	2.1			0.3			7.8			5.3			(0.8		)	6.6
Total losses and loss adjustment expenses	78.9			77.0			84.4			77.4			89.0			75.0			78.0			82.0
Expenses	22.5			22.3			22.3			22.8			23.6			24.9			22.4			24.2
Combined ratio	101.4			99.3			106.7			100.2			112.6			99.9			100.3			106.3
Current accident year catastrophes and prior accident year development	8.8			8.1			5.0			4.1			18.5			10.1			8.4			14.3
Underlying combined ratio	92.6			91.2			101.8			96.1			94.2			89.7			91.9			92.0
PRODUCT
Automobile
Combined ratio	100.8			97.5			118.1			104.8			117.0			106.6			99.1			111.8
Current accident year catastrophes	2.3			1.4			0.6			1.8			3.5			1.2			1.8			2.3
Prior accident year development	(0.6		)	(0.4		)	3.8			(0.1		)	10.8			9.3			(0.5		)	10.1
Underlying combined ratio	99.1			96.6			113.6			103.1			102.7			96.2			97.8			99.4
Homeowners
Combined ratio	103.4			103.4			80.9			89.2			102.4			84.7			103.4			93.5
Current accident year catastrophes	28.0			24.9			8.1			8.3			27.4			13.1			26.4			20.2
Prior accident year development	(2.1		)	(0.4		)	(1.9		)	1.2			0.8			(3.5		)	(1.2		)	(1.4		)
Underlying combined ratio	77.6			78.9			74.7			79.6			74.2			75.1			78.2			74.7

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

SUPPLEMENTAL DATA

	THREE MONTHS ENDED												SIX MONTHS ENDED
	Jun 30 2017		Mar 31 2017		Dec 31 2016		Sept 30 2016		Jun 30 2016		Mar 31 2016		Jun 30 2017		Jun 30 2016
DISTRIBUTION
WRITTEN PREMIUMS
AARP Direct	$	729	$	687	$	665	$	762	$	752	$	711	$	1,416	$	1,463
AARP Agency	80		86		95		95		92		92		166		184
Other Agency	104		105		121		131		135		136		209		271
Other	12		11		11		12		13		14		23		27
Total	$	925	$	889	$	892	$	1,000	$	992	$	953	$	1,814	$	1,945
EARNED PREMIUMS
AARP Direct	$	711	$	708	$	728	$	731	$	723	$	715	$	1,419	$	1,438
AARP Agency	89		92		95		94		94		92		181		186
Other Agency	117		123		133		140		147		153		240		300
Other	13		11		11		15		12		15		24		27
Total	$	930	$	934	$	967	$	980	$	976	$	975	$	1,864	$	1,951
PRODUCT LINE
WRITTEN PREMIUMS
Automobile	$	638	$	645	$	627	$	691	$	686	$	690	$	1,283	$	1,376
Homeowners	287		244		265		309		306		263		531		569
Total	$	925	$	889	$	892	$	1,000	$	992	$	953	$	1,814	$	1,945
EARNED PREMIUMS
Automobile	$	652	$	654	$	676	$	686	$	680	$	678	$	1,306	$	1,358
Homeowners	278		280		291		294		296		297		558		593
Total	$	930	$	934	$	967	$	980	$	976	$	975	$	1,864	$	1,951

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

SUPPLEMENTAL DATA (CONTINUED)

	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Jun 30 2017			Jun 30 2016
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
New Business Premium
Automobile	$	38		$	42		$	48		$	70		$	83		$	110		$	80		$	193
Homeowners	$	12		$	12		$	12		$	18		$	21		$	23		$	24		$	44
Renewal Written Price Increases
Automobile	10.6		%	10.3		%	9.6		%	8.0		%	6.9		%	6.1		%	10.5		%	6.5		%
Homeowners	9.2		%	8.9		%	8.5		%	8.3		%	7.3		%	8.1		%	9.0		%	7.7		%
Renewal Earned Price Increases
Automobile	9.1		%	8.2		%	7.1		%	6.4		%	5.9		%	5.7		%	8.7		%	5.8		%
Homeowners	8.5		%	8.2		%	8.0		%	7.8		%	7.5		%	7.2		%	8.3		%	7.3		%
Policy Count Retention
Automobile	81		%	82		%	83		%	84		%	84		%	84		%	82		%	84		%
Homeowners	83		%	82		%	83		%	84		%	84		%	84		%	82		%	84		%
Premium Retention
Automobile	88		%	88		%	89		%	88		%	88		%	87		%	88		%	88		%
Homeowners	90		%	88		%	90		%	89		%	89		%	90		%	89		%	89		%
Policies in Force (in thousands)
Automobile	1,839			1,905			1,965			2,016			2,053			2,073
Homeowners	1,109			1,144			1,176			1,208			1,239			1,262

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

SUPPLEMENTAL DATA - AUTOMOBILE

	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Jun 30 2017			Jun 30 2016
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
New Business Premium by Distribution
AARP Direct	$	32		$	33		$	35		$	52		$	62		$	84		$	65		$	146
AARP Agency	4			6			9			12			14			17			10			31
Other Agency	2			3			4			6			6			8			5			14
Other	—			—			—			—			1			1			—			2
Total	$	38		$	42		$	48		$	70		$	83		$	110		$	80		$	193
Policy Count Retention by Distribution
AARP Direct	84		%	83		%	85		%	86		%	86		%	86		%	83		%	86		%
AARP Agency	70		%	74		%	79		%	78		%	78		%	78		%	72		%	78		%
Other Agency [1]	75		%	76		%	79		%	78		%	78		%	80		%	75		%	79		%
Total	81		%	82		%	83		%	84		%	84		%	84		%	82		%	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																		SIX MONTHS ENDED
	Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Jun 30 2017			Jun 30 2016
Written premiums	$	—		$	—		$	(1	)	$	—		$	—		$	—		$	—		$	—
Change in unearned premium reserve	—			—			(1		)	—			—			—			—			—
Earned premiums	—			—			—			—			—			—			—			—
Losses and loss adjustment expenses
Prior accident year development [1]	—			1			8			—			269			1			1			270
Total losses and loss adjustment expenses	—			1			8			—			269			1			1			270
Underwriting expenses	3			5			(1		)	7			6			7			8			13
Underwriting loss	(3		)	(6		)	(7		)	(7		)	(275		)	(8		)	(9		)	(283		)
Net investment income	27			31			31			31			33			32			58			65
Net realized capital gains (losses) [2]	5			4			(26		)	(47		)	6			(3		)	9			3
Loss on reinsurance transaction	—			—			650			—			—			—			—			—
Other income	—			2			2			2			—			2			2			2
Income (loss) before income taxes	29			31			(650		)	(21		)	(236		)	23			60			(213		)
Income tax expense (benefit) [3]	9			7			(227		)	(52		)	(82		)	6			16			(76		)
Net income (loss)	20			24			(423		)	31			(154		)	17			44			(137		)
Less: Net realized capital gains (losses) after DAC, excluded from core earnings, before tax [2]	4			4			(26		)	(47		)	6			(3		)	8			3
Less: Loss on reinsurance transaction, before tax	—			—			(650		)	—			—			—			—			—
Less: Income tax benefit (expense) [3] [4]	(2		)	(1		)	238			59			(6		)	1			(3		)	(5		)
Core earnings (losses)	$	18		$	21		$	15		$	19		$	(154	)	$	19		$	39		$	(135	)

[1] The three months ended June 30, 2016 included reserve development associated with the Company's annual review of asbestos and environmental reserves. In 2017, the Company expects to perform its regular comprehensive annual review of environmental reserves in the fourth quarter. The Company has an adverse development cover in place that reinsures asbestos and environmental reserve development after December 31, 2016, subject to a limit of $1.5 billion.

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

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

[4] 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																		SIX MONTHS ENDED
	Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Jun 30 2017			Jun 30 2016
Earned premiums	$	805		$	816		$	788		$	792		$	790		$	778		$	1,621		$	1,568
Fee income	19			19			20			20			18			17			38			35
Net investment income	88			95			95			95			88			88			183			176
Net realized capital gains	13			8			8			19			16			2			21			18
Total revenues	925			938			911			926			912			885			1,863			1,797
Benefits, losses and loss adjustment expenses	628			651			620			642			634			618			1,279			1,252
Amortization of DAC	8			8			8			8			7			8			16			15
Insurance operating costs and other expenses [1]	193			220			196			190			196			194			413			390
Total benefits, losses and expenses	829			879			824			840			837			820			1,708			1,657
Income before income taxes	96			59			87			86			75			65			155			140
Income tax expense	27			14			24			24			20			15			41			35
Net income	69			45			63			62			55			50			114			105
Less: Net realized capital gains after DAC, excluded from core earnings, before tax	13			7			7			17			15			2			20			17
Less: Income tax expense on items not included in core earnings	(5		)	(2		)	(3		)	(6		)	(6		)	—			(7		)	(6		)
Core earnings	$	61		$	40		$	59		$	51		$	46		$	48		$	101		$	94
Margin
Net income margin [2]	7.5		%	4.9		%	6.9		%	6.7		%	6.0		%	5.7		%	6.2		%	5.9		%
Core earnings margin [2] *	6.7		%	4.3		%	6.5		%	5.6		%	5.1		%	5.5		%	5.5		%	5.3		%
ROE
Net income (net income last 12 months to stockholders' equity including AOCI)	11.1		%	10.8		%	11.2		%	9.3		%	8.2		%	8.3		%
Less: Net realized capital gains (losses) after DAC, excluded from core earnings, before tax	2.3		%	2.5		%	2.2		%	1.5		%	0.3		%	(0.5		)%
Less: Income tax benefit (expense) on items not included in core earnings	(0.8		)%	(0.9		)%	(0.8		)%	(0.5		)%	(0.1		)%	0.2		%
Less: Impact of AOCI, excluded from Core ROE	(1.6		)%	(1.1		)%	(0.9		)%	(1.4		)%	(1.4		)%	(1.6		)%
Core earnings (core earnings last 12 months to stockholders' equity excluding AOCI)	11.2		%	10.3		%	10.7		%	9.7		%	9.4		%	10.2		%

[1] The three months ended March 31, 2017 included state guaranty fund assessments of $20, before-tax, related to the liquidation of a life and health insurance company.

[2] Excluding the state guaranty fund assessment related to the liquidation of a life and health insurance company, net income and core earnings margins for the three months ended March 31, 2017 were 6.3% and 5.8%, respectively.

* 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																		SIX MONTHS ENDED
	Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Jun 30 2017			Jun 30 2016
PREMIUMS
Fully insured ongoing premiums
Group disability	$	360		$	364		$	359		$	360		$	363		$	352		$	724		$	715
Group life	391			386			377			381			376			369			777			745
Other	51			55			52			51			51			51			106			102
Total fully insured ongoing premiums	802			805			788			792			790			772			1,607			1,562
Total buyouts [1]	3			11			—			—			—			6			14			6
Total premiums	$	805		$	816		$	788		$	792		$	790		$	778		$	1,621		$	1,568
SALES (GROSS ANNUALIZED NEW PREMIUMS)
Fully insured ongoing sales
Group disability	$	32		$	87		$	25		$	30		$	45		$	84		$	119		$	129
Group life	33			115			15			26			31			149			148			180
Other	2			9			3			5			4			33			11			37
Total fully insured ongoing sales	67			211			43			61			80			266			278			346
Total buyouts [1]	3			11			—			—			—			6			14			6
Total sales	$	70		$	222		$	43		$	61		$	80		$	272		$	292		$	352
RATIOS, EXCLUDING BUYOUTS
Group disability loss ratio	78.9		%	82.9		%	84.0		%	79.4		%	79.9		%	82.4		%	80.9		%	81.1		%
Group life loss ratio	74.2		%	73.1		%	70.6		%	80.0		%	78.1		%	73.8		%	73.6		%	76.0		%
Total loss ratio	76.1		%	77.7		%	76.7		%	79.1		%	78.5		%	77.6		%	76.9		%	78.0		%
Expense ratio [2]	24.5		%	27.7		%	25.2		%	24.4		%	25.1		%	25.6		%	26.1		%	25.4		%

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

[2] The three months ended March 31, 2017 included state guaranty fund assessments totaling 2.5 pts related to the liquidation of a life and health insurance company.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

MUTUAL FUNDS

INCOME STATEMENTS

	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Jun 30 2017		Jun 30 2016
Investment management fees	$	162		$	155		$	150		$	145		$	140		$	135		$	317	$	275
Shareholder servicing fees	25			23			22			20			20			20			48		40
Other revenue	14			14			12			13			13			12			28		25
Total revenues	201			192			184			178			173			167			393		340
Sub-advisory	60			56			54			52			50			48			116		98
Employee compensation and benefits	28			28			27			26			24			24			56		48
Distribution and service	44			43			42			40			39			39			87		78
General, administrative and other	31			30			34			29			28			25			61		53
Total expenses	163			157			157			147			141			136			320		277
Income before income taxes	38			35			27			31			32			31			73		63
Income tax expense	14			12			10			10			12			11			26		23
Net income	$	24		$	23		$	17		$	21		$	20		$	20		$	47	$	40
Core earnings	$	24		$	23		$	17		$	21		$	20		$	20		$	47	$	40
Daily Average Total Mutual Funds segment AUM	$	105,625		$	101,114		$	95,935		$	93,753		$	91,289		$	87,192		$	103,382	$	89,263
Return on assets (bps, after-tax) [1]
Net income	9.2			9.2			7.4			8.5			8.9			9.3			9.2		9.1
Core earnings	9.2			9.2			7.4			8.5			8.9			9.3			9.2		9.1
ROE
Net income (net income last 12 months to stockholders' equity including AOCI)	33.2		%	32.2		%	31.7		%	33.2		%	34.2		%	35.5		%
Less: Impact of AOCI, excluded from Core ROE	(0.3		)%	—		%	0.1		%	(0.2		)%	(0.2		)%	(0.3		)%
Core earnings (core earnings last 12 months to stockholders' equity excluding AOCI)	33.5		%	32.2		%	31.6		%	33.4		%	34.4		%	35.8		%

[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																		SIX MONTHS ENDED
	Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Jun 30 2017			Jun 30 2016
Equity
Beginning balance	$	54,683		$	50,826		$	48,476		$	46,808		$	46,455		$	47,369		$	50,826		$	47,369
Sales	4,076			3,987			2,970			2,722			2,324			3,069			8,063			5,393
Redemptions	(3,269		)	(3,587		)	(3,959		)	(3,138		)	(2,974		)	(2,853		)	(6,856		)	(5,827		)
Net flows	807			400			(989		)	(416		)	(650		)	216			1,207			(434		)
Change in market value and other	2,557			3,457			3,339			2,084			1,003			(1,130		)	6,014			(127		)
Ending balance	$	58,047		$	54,683		$	50,826		$	48,476		$	46,808		$	46,455		$	58,047		$	46,808
Fixed Income
Beginning balance	$	13,973		$	13,301		$	12,864		$	12,491		$	12,389		$	12,625		$	13,301		$	12,625
Sales	1,079			1,930			1,204			1,027			843			918			3,009			1,761
Redemptions	(900		)	(1,406		)	(1,121		)	(888		)	(1,012		)	(1,432		)	(2,306		)	(2,444		)
Net flows	179			524			83			139			(169		)	(514		)	703			(683		)
Change in market value and other	134			148			354			234			271			278			282			549
Ending balance	$	14,286		$	13,973		$	13,301		$	12,864		$	12,491		$	12,389		$	14,286		$	12,491
Multi-Strategy Investments [1]
Beginning balance	$	18,142		$	17,171		$	16,564		$	15,642		$	14,775		$	14,419		$	17,171		$	14,419
Sales	1,093			1,301			1,279			1,147			920			712			2,394			1,632
Redemptions	(765		)	(892		)	(882		)	(676		)	(520		)	(600		)	(1,657		)	(1,120		)
Net flows	328			409			397			471			400			112			737			512
Change in market value and other	453			562			210			451			467			244			1,015			711
Ending balance	$	18,923		$	18,142		$	17,171		$	16,564		$	15,642		$	14,775		$	18,923		$	15,642
Mutual Fund AUM
Beginning balance	$	86,798		$	81,298		$	77,904		$	74,941		$	73,619		$	74,413		$	81,298		$	74,413
Sales	6,248			7,218			5,453			4,896			4,087			4,699			13,466			8,786
Redemptions	(4,934		)	(5,885		)	(5,962		)	(4,702		)	(4,506		)	(4,885		)	(10,819		)	(9,391		)
Net flows	1,314			1,333			(509		)	194			(419		)	(186		)	2,647			(605		)
Change in market value and other	3,144			4,167			3,903			2,769			1,741			(608		)	7,311			1,133
Ending balance	$	91,256		$	86,798		$	81,298		$	77,904		$	74,941		$	73,619		$	91,256		$	74,941
Exchange-Traded Products ("ETP") AUM	$	325		$	278		$	209		$	210								$	325
Mutual Funds segment AUM before Talcott Resolution	$	91,581		$	87,076		$	81,507		$	78,114		$	74,941		$	73,619		$	91,581		$	74,941
Talcott Resolution AUM [2]	$	16,098		$	16,123		$	16,010		$	16,387		$	16,482		$	16,795		$	16,098		$	16,482
Total Mutual Funds segment AUM	$	107,679		$	103,199		$	97,517		$	94,501		$	91,423		$	90,414		$	107,679		$	91,423

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

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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

TALCOTT RESOLUTION

FINANCIAL HIGHLIGHTS

	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Jun 30 2017			Jun 30 2016
NET INCOME
Individual Annuity	$	70		$	34		$	11		$	33		$	76		$	39		$	104		$	115
Institutional and other	35			34			34			45			28			(22		)	69			6
Talcott Resolution net income	105			68			45			78			104			17			173			121
Less: Unlock benefit (charge), before tax	20			18			(20		)	(13		)	18			13			38			31
Less: Net realized capital gains (losses) after DAC, excluded from core earnings, before tax	22			(43		)	(9		)	(28		)	3			(106		)	(21		)	(103		)
Less: Income tax benefit (expense) on items not included in core earnings	(17		)	10			(37		)	15			(8		)	33			(7		)	25
Talcott Resolution core earnings	$	80		$	83		$	111		$	104		$	91		$	77		$	163		$	168
CORE EARNINGS
Individual Annuity	$	64		$	62		$	78		$	68		$	69		$	61		$	126		$	130
Institutional and other	16			21			33			36			22			16			37			38
Talcott Resolution core earnings	$	80		$	83		$	111		$	104		$	91		$	77		$	163		$	168
ROE
Net income (net income last 12 months to stockholders' equity including AOCI)	3.3		%	3.4		%	2.5		%	2.1		%	2.0		%	3.7		%
Less: Unlock benefit (charge), before tax	0.1		%	—		%	—		%	1.0		%	0.5		%	0.9		%
Less: Net realized capital gains (losses) after DAC, excluded from core earnings, before tax	(0.9		)%	(1.2		)%	(2.2		)%	(3.9		)%	(3.7		)%	(3.7		)%
Less: Net reinsurance gain on dispositions, before tax	—		%	—		%	—		%	—		%	0.3		%	0.4		%
Less: Income tax benefit (expense) on items not included in core earnings	(0.4		)%	(0.3		)%	—		%	1.0		%	1.0		%	0.8		%
Less: Impact of AOCI, excluded from Core ROE	(0.8		)%	(0.6		)%	(0.4		)%	(0.7		)%	(0.6		)%	(0.7		)%
Core earnings (core earnings last 12 months to stockholders' equity excluding AOCI)	5.3		%	5.5		%	5.1		%	4.7		%	4.5		%	6.0		%
Return on Assets (bps, after tax) [1]
Net income return on assets	57.9			28.1			9.0			26.6			60.7			30.3			43.1			45.1
Core earnings return on assets *	53.0			51.2			63.8			54.9			55.1			47.4			52.2			51.0

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

* 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												SIX MONTHS ENDED
	Jun 30 2017		Mar 31 2017		Dec 31 2016		Sept 30 2016		Jun 30 2016		Mar 31 2016		Jun 30 2017		Jun 30 2016
FULL SURRENDER RATES [1]
Variable Annuity	7.3	%	7.8	%	6.7	%	7.4	%	7.7	%	6.7	%	7.6	%	7.2	%
Fixed Annuity and Other	6.0	%	5.8	%	4.2	%	5.4	%	5.1	%	4.4	%	5.9	%	4.8	%
CONTRACT COUNTS (in thousands)
Variable Annuity	516		529		544		557		571		587
Fixed Annuity and Other	117		119		121		123		125		127

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

	AS OF
	Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016
VARIABLE ANNUITY DEATH AND LIVING BENEFITS
S&P 500 index value at end of period	2,423			2,363			2,239			2,168			2,099			2,060
Total account value with guaranteed minimum death benefits (“GMDB”) [5]	$	40,668		$	40,948		$	40,698		$	41,696		$	41,738		$	42,500
Gross net amount at risk ("NAR")	$	3,056		$	3,131		$	3,298		$	3,404		$	3,885		$	4,262
NAR reinsured	80		%	80		%	79		%	79		%	75		%	73		%
Contracts in the Money [3]	17		%	17		%	28		%	31		%	48		%	56		%
% In the Money [3] [4]	22		%	22		%	14		%	13		%	10		%	9		%
Retained NAR [2]	$	610		$	634		$	704		$	730		$	965		$	1,149
Net GAAP liability for GMDB benefits	$	159		$	162		$	163		$	175		$	178		$	184
Total account value with guaranteed minimum withdrawal benefits (“GMWB”)	$	18,058		$	18,302		$	18,290		$	18,869		$	18,952		$	19,384
Gross NAR	$	177		$	187		$	203		$	195		$	240		$	267
NAR reinsured	41		%	41		%	39		%	38		%	35		%	34		%
Contracts in the Money [3]	5		%	6		%	7		%	7		%	10		%	11		%
% In the Money [3] [4]	17		%	17		%	13		%	12		%	10		%	10		%
Retained NAR [2]	$	104		$	111		$	124		$	121		$	155		$	177
Net GAAP liability for non-lifetime GMWB benefits	$	64		$	84		$	153		$	238		$	296		$	254
Net GAAP liability for lifetime GMWB benefits	$	197		$	195		$	191		$	156		$	156		$	150

[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.

[5] Includes $1.6 billion of account value for contracts that had a GMDB at issue but no longer have a GMDB due to certain elections made by policyholders or their beneficiaries.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

TALCOTT RESOLUTION

INDIVIDUAL ANNUITY

ACCOUNT VALUE ROLLFORWARD

	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Jun 30 2017			Jun 30 2016
VARIABLE ANNUITY
Beginning balance	$	40,948		$	40,698		$	41,696		$	41,738		$	42,500		$	44,245		$	40,698		$	44,245
Deposits	37			36			34			37			40			42			73			82
Partial withdrawals	(331		)	(384		)	(450		)	(344		)	(379		)	(410		)	(715		)	(789		)
Full surrenders	(744		)	(799		)	(694		)	(772		)	(813		)	(728		)	(1,543		)	(1,541		)
Death benefits/annuitizations/other [1]	(335		)	(373		)	(299		)	(338		)	(344		)	(370		)	(708		)	(714		)
Net flows	(1,373		)	(1,520		)	(1,409		)	(1,417		)	(1,496		)	(1,466		)	(2,893		)	(2,962		)
Change in market value/change in reserve/interest credited and other	1,093			1,770			411			1,375			734			(279		)	2,863			455
Ending balance	$	40,668		$	40,948		$	40,698		$	41,696		$	41,738		$	42,500		$	40,668		$	41,738
FIXED MARKET VALUE ADJUSTED (“MVA”) AND OTHER
Beginning balance	$	7,571		$	7,673		$	7,792		$	7,901		$	8,014		$	8,109		$	7,673		$	8,109
Deposits	—			1			—			—			—			—			1			—
Surrenders	(88		)	(90		)	(81		)	(83		)	(86		)	(76		)	(178		)	(162		)
Death benefits/annuitizations/other [1]	(106		)	(96		)	(102		)	(105		)	(98		)	(86		)	(202		)	(184		)
Net flows	(194		)	(185		)	(183		)	(188		)	(184		)	(162		)	(379		)	(346		)
Change in market value/change in reserve/interest credited and other	76			83			64			79			71			67			159			138
Ending balance	$	7,453		$	7,571		$	7,673		$	7,792		$	7,901		$	8,014		$	7,453		$	7,901
TOTAL INDIVIDUAL ANNUITY
Beginning balance	$	48,519		$	48,371		$	49,488		$	49,639		$	50,514		$	52,354		$	48,371		$	52,354
Deposits	37			37			34			37			40			42			74			82
Surrenders and partial withdrawals	(1,163		)	(1,273		)	(1,225		)	(1,199		)	(1,278		)	(1,214		)	(2,436		)	(2,492		)
Death benefits/annuitizations/other [1]	(441		)	(469		)	(401		)	(443		)	(442		)	(456		)	(910		)	(898		)
Net flows	(1,567		)	(1,705		)	(1,592		)	(1,605		)	(1,680		)	(1,628		)	(3,272		)	(3,308		)
Change in market value/change in reserve/interest credited and other	1,169			1,853			475			1,454			805			(212		)	3,022			593
Ending balance	$	48,121		$	48,519		$	48,371		$	49,488		$	49,639		$	50,514		$	48,121		$	49,639

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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CORPORATE

INCOME STATEMENTS

	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Jun 30 2017			Jun 30 2016
Fee income	$	1		$	1		$	1		$	1		$	1		$	1		$	2		$	2
Net investment income	5			4			8			6			6			11			9			17
Net realized capital gains (losses)	(2		)	—			(97		)	(1		)	(1		)	(4		)	(2		)	(5		)
Total revenues	4			5			(88		)	6			6			8			9			14
Insurance operating costs and other expenses	5			4			3			6			(1		)	6			9			5
Pension settlement [1]	750			—			—			—			—			—			750			—
Interest expense	81			83			82			86			85			86			164			171
Total expenses	836			87			85			92			84			92			923			176
Loss before income taxes	(832		)	(82		)	(173		)	(86		)	(78		)	(84		)	(914		)	(162		)
Income tax benefit [2] [3] [4]	(292		)	(36		)	(141		)	(31		)	(82		)	(55		)	(328		)	(137		)
Net income (loss)	(540		)	(46		)	(32		)	(55		)	4			(29		)	(586		)	(25		)
Less: Net realized capital gains (losses) after DAC, excluded from core losses, before tax	(1		)	(1		)	(99		)	1			(2		)	(4		)	(2		)	(6		)
Less: Pension settlement, before tax	(750		)	—			—			—			—			—			(750		)	—
Less: Income tax benefit (expense) [3] [5]	263			—			114			(2		)	56			26			263			82
Core losses	$	(52	)	$	(45	)	$	(47	)	$	(54	)	$	(50	)	$	(51	)	$	(97	)	$	(101	)

[1] Represents a settlement charge of $750, before tax, for the purchase of a group annuity contract to transfer approximately $1.6 billion of certain U.S. qualified pension plan liabilities to a third-party.

[2] The three months ended March 31, 2017 included federal income tax benefits of $7 related to stock-based compensation on vesting of stock-based awards at a fair value per share greater than fair value on the date of grant.

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

[4] The three months ended June 30, 2017 included a federal income tax benefit of $262 related to the pension settlement charge.

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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTMENT EARNINGS BEFORE TAX

CONSOLIDATED

	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Jun 30 2017			Jun 30 2016
Net Investment Income
Fixed maturities [1]
Taxable	$	477		$	475		$	488		$	483		$	498		$	488		$	952		$	986
Tax-exempt	103			100			103			106			106			107			203			213
Total fixed maturities	$	580		$	575		$	591		$	589		$	604		$	595		$	1,155		$	1,199
Equity securities, available-for-sale	8			5			9			5			6			11			13			17
Mortgage loans	61			62			70			62			60			60			123			120
Policy loans	20			19			21			20			20			22			39			42
Limited partnerships and other alternative investments [2]	48			70			73			93			40			8			118			48
Other [3]	26			29			25			29			34			27			55			61
Subtotal	743			760			789			798			764			723			1,503			1,487
Investment expense	(28		)	(32		)	(31		)	(26		)	(29		)	(27		)	(60		)	(56		)
Total net investment income	$	715		$	728		$	758		$	772		$	735		$	696		$	1,443		$	1,431
Annualized investment yield, before tax [4]	4.2		%	4.3		%	4.4		%	4.5		%	4.2		%	4.0		%	4.2		%	4.1		%
Annualized limited partnerships and other alternative investment yield, before tax [4]	8.0		%	11.6		%	12.1		%	15.2		%	6.1		%	1.2		%	9.9		%	3.6		%
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4] *	4.1		%	4.0		%	4.2		%	4.1		%	4.1		%	4.1		%	4.0		%	4.1		%
Annualized investment yield, after-tax [4]	2.9		%	3.0		%	3.1		%	3.1		%	3.0		%	2.8		%	2.9		%	2.9		%
Average reinvestment rate [5]	3.5		%	3.7		%	3.7		%	3.2		%	3.2		%	3.8		%	3.6		%	3.5		%
Average sales/maturities yield [6]	3.7		%	3.9		%	3.7		%	3.9		%	4.0		%	4.3		%	3.8		%	4.2		%
Portfolio duration (in years) [7]	5.8			5.8			5.7			5.8			5.8			5.8			5.8			5.8

[1] Includes income on short-term bonds.

[2] Other alternative investments include an insurer-owned life insurance policy which is invested in hedge funds and other investments.

[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.

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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTMENT EARNINGS BEFORE TAX

PROPERTY & CASUALTY

	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Jun 30 2017			Jun 30 2016
Net Investment Income
Fixed maturities [1]
Taxable	$	169		$	168		$	176		$	166		$	168		$	169		$	337		$	337
Tax-exempt	81			78			81			82			82			84			159			166
Total fixed maturities	$	250		$	246		$	257		$	248		$	250		$	253		$	496		$	503
Equity securities, available-for-sale	4			4			4			3			3			4			8			7
Mortgage loans	21			21			20			20			19			19			42			38
Limited partnerships and other alternative investments [2]	32			45			36			36			23			6			77			29
Other [3]	8			8			6			9			9			2			16			11
Subtotal	315			324			323			316			304			284			639			588
Investment expense	(13		)	(14		)	(13		)	(11		)	(12		)	(12		)	(27		)	(24		)
Total net investment income	$	302		$	310		$	310		$	305		$	292		$	272		$	612		$	564
Annualized investment yield, before tax [4]	4.1		%	4.2		%	4.2		%	4.1		%	3.9		%	3.7		%	4.1		%	3.8		%
Annualized limited partnerships and other alternative investment yield, before tax [4]	9.6		%	13.6		%	11.0		%	11.4		%	6.9		%	1.7		%	11.8		%	4.2		%
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4] *	3.8		%	3.7		%	3.9		%	3.8		%	3.8		%	3.8		%	3.8		%	3.8		%
Annualized investment yield, after-tax [4]	3.0		%	3.1		%	3.1		%	3.0		%	2.9		%	2.7		%	3.0		%	2.8		%
Average reinvestment rate [5]	3.5		%	3.7		%	3.6		%	3.1		%	3.1		%	3.8		%	3.6		%	3.5		%
Average sales/maturities yield [6]	3.8		%	3.8		%	3.8		%	4.0		%	3.9		%	4.5		%	3.8		%	4.2		%
Portfolio duration (in years) [7]	5.0			5.0			4.9			5.0			5.1			5.2			5.0			5.1

Footnotes [1] through [7] are explained on page 29.

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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NET INVESTMENT INCOME

CONSOLIDATED

	THREE MONTHS ENDED													SIX MONTHS ENDED
Net Investment Income by Segment	Jun 30 2017		Mar 31 2017		Dec 31 2016		Sept 30 2016		Jun 30 2016		Mar 31 2016			Jun 30 2017		Jun 30 2016
Net Investment Income
Commercial Lines	$	240	$	243	$	243	$	239	$	226	$	209		$	483	$	435
Personal Lines	35		36		36		35		33		31			71		64
P&C Other Operations	27		31		31		31		33		32			58		65
Total Property & Casualty	$	302	$	310	$	310	$	305	$	292	$	272		$	612	$	564
Group Benefits	88		95		95		95		88		88			183		176
Mutual Funds	—		1		—		—		1		—			1		1
Talcott Resolution	320		318		345		366		348		325			638		673
Corporate	5		4		8		6		6		11			9		17
Total net investment income by segment	$	715	$	728	$	758	$	772	$	735	$	696		$	1,443	$	1,431
	THREE MONTHS ENDED													SIX MONTHS ENDED
Net Investment Income From Limited Partnerships and Other Alternative Investments	Jun 30 2017		Mar 31 2017		Dec 31 2016		Sept 30 2016		Jun 30 2016		Mar 31 2016			Jun 30 2017		Jun 30 2016
Total Property & Casualty	$	32	$	45	$	36	$	36	$	23	$	6		$	77	$	29
Group Benefits	7		13		10		10		4		3			20		7
Talcott Resolution	9		12		27		47		13		(1		)	21		12
Total net investment income from limited partnerships and other alternative investments [1]	$	48	$	70	$	73	$	93	$	40	$	8		$	118	$	48

[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																		SIX MONTHS ENDED
	Jun 30 2017			Mar 31 2017			Dec 31 2016			Sept 30 2016			Jun 30 2016			Mar 31 2016			Jun 30 2017			Jun 30 2016
Net Realized Capital Gains (Losses)
Gross gains on sales	$	140		$	112		$	113		$	114		$	124		$	90		$	252		$	214
Gross losses on sales	(31		)	(75		)	(96		)	(24		)	(25		)	(108		)	(106		)	(133		)
Net impairment losses	(14		)	(1		)	(12		)	(14		)	(7		)	(23		)	(15		)	(30		)
Valuation allowances on mortgage loans	2			—			—			—			—			—			2			—
Results of variable annuity hedge program
GMWB derivatives, net	20			18			(30		)	6			3			(17		)	38			(14		)
Macro hedge	(38		)	(86		)	(65		)	(64		)	(20		)	(14		)	(124		)	(34		)
Total results of variable annuity hedge program	(18		)	(68		)	(95		)	(58		)	(17		)	(31		)	(86		)	(48		)
Transactional foreign currency revaluation	13			(13		)	(4		)	(13		)	(87		)	(44		)	—			(131		)
Non-qualifying foreign currency derivatives	(17		)	11			2			17			82			39			(6		)	121
Other net gains (losses) [1] [2] [3]	—			14			(57		)	(39		)	(17		)	(78		)	14			(95		)
Total net realized capital gains (losses)	$	75		$	(20	)	$	(149	)	$	(17	)	$	53		$	(155	)	$	55		$	(102	)
Less: Impacts of DAC	(1		)	(3		)	(5		)	(5		)	—			(7		)	(4		)	(7		)
Less: Realized gains, included in core earnings, before tax	1			3			2			1			2			—			4			2
Total net realized capital gains (losses) after DAC, excluded from core earnings, before tax	75			(20		)	(146		)	(13		)	51			(148		)	55			(97		)
Less: Impacts of tax [4]	29			(8		)	(86		)	(46		)	21			(52		)	21			(31		)
Total net realized capital gains (losses), net of tax and DAC, excluded from core earnings	$	46		$	(12	)	$	(60	)	$	33		$	30		$	(96	)	$	34		$	(66	)

[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 before tax capital losses on the sale of the Company's U.K. property and casualty run-off subsidiaries of $22 and $59, respectively. Net of tax, the sale resulted in an after-tax capital loss of $5 in 2016 from the transaction.

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

[4] The three months ended December 31, 2016 and September 30, 2016 included federal income tax benefits on the 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

	Jun 30 2017				Mar 31 2017				Dec 31 2016				Sept 30 2016				Jun 30 2016
	Amount [1]		Percent		Amount		Percent		Amount [1]		Percent		Amount		Percent		Amount		Percent
Total investments	$	73,780	100.0	%	$	72,189	100.0	%	$	70,637	100.0	%	$	73,708	100.0	%	$	75,093	100.0	%
Asset-backed securities	$	2,354	4.1	%	$	2,265	4.0	%	$	2,382	4.3	%	$	2,685	4.5	%	$	2,777	4.5	%
Collateralized debt obligations	2,457		4.3	%	2,311		4.1	%	1,916		3.4	%	2,573		4.3	%	2,867		4.7	%
Commercial mortgage-backed securities	5,173		8.9	%	5,099		9.1	%	4,936		8.8	%	5,268		8.7	%	5,195		8.5	%
Corporate	26,044		44.9	%	25,730		45.7	%	25,666		45.8	%	26,904		44.6	%	27,158		44.4	%
Foreign government/government agencies	1,297		2.2	%	1,187		2.1	%	1,171		2.1	%	1,186		2.0	%	1,188		1.9	%
Municipal	12,284		21.3	%	11,780		20.9	%	11,486		20.5	%	12,594		20.9	%	12,611		20.6	%
Residential mortgage-backed securities	4,219		7.4	%	3,921		6.9	%	4,767		8.5	%	4,936		8.2	%	4,826		7.9	%
U.S. Treasuries	4,006		6.9	%	4,033		7.2	%	3,679		6.6	%	4,079		6.8	%	4,619		7.5	%
Total fixed maturities, available-for-sale	$	57,834	100.0	%	$	56,326	100.0	%	$	56,003	100.0	%	$	60,225	100.0	%	$	61,241	100.0	%
U.S. government/government agencies	$	7,510	13.0	%	$	7,281	12.9	%	$	7,626	13.6	%	$	8,225	13.6	%	$	8,887	14.5	%
AAA	7,231		12.5	%	7,032		12.5	%	6,969		12.5	%	7,693		12.8	%	7,883		12.9	%
AA	10,020		17.3	%	9,634		17.1	%	9,182		16.4	%	10,342		17.2	%	10,600		17.3	%
A	15,574		26.9	%	14,936		26.5	%	14,996		26.8	%	15,804		26.2	%	15,898		25.9	%
BBB	14,204		24.5	%	14,003		24.9	%	13,901		24.8	%	14,657		24.3	%	14,739		24.1	%
BB	1,999		3.5	%	2,139		3.8	%	2,035		3.6	%	2,089		3.5	%	2,094		3.4	%
B	1,032		1.8	%	1,016		1.8	%	1,008		1.8	%	1,092		1.8	%	915		1.5	%
CCC	230		0.4	%	243		0.4	%	254		0.4	%	281		0.5	%	171		0.3	%
CC & below	34		0.1	%	42		0.1	%	32		0.1	%	42		0.1	%	54		0.1	%
Total fixed maturities, available-for-sale	$	57,834	100.0	%	$	56,326	100.0	%	$	56,003	100.0	%	$	60,225	100.0	%	$	61,241	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

JUNE 30, 2017

	Cost or Amortized Cost		Fair Value		Percent of Total Invested Assets
Top Ten Corporate Fixed Maturity and Equity Exposures by Sector, Available-for-sale
Financial services	$	5,234	$	5,584	7.6	%
Utilities	4,825		5,169		7.0	%
Technology and communications	3,490		3,850		5.2	%
Consumer non-cyclical	3,480		3,713		5.0	%
Energy [1]	2,255		2,411		3.3	%
Capital goods	1,728		1,842		2.5	%
Consumer cyclical	1,532		1,620		2.2	%
Basic industry	1,137		1,216		1.6	%
Transportation	919		974		1.3	%
Other	671		720		1.0	%
Total	$	25,271	$	27,099	36.7	%
Top Ten Exposures by Issuer [2]
Goldman Sachs Group Inc.	$	292	$	303	0.4	%
State of California	247		278		0.4	%
New York State Dormitory Authority	240		260		0.4	%
New York City Transitional Finance Authority	238		258		0.4	%
Commonwealth of Massachusetts	234		255		0.3	%
Morgan Stanley	241		246		0.3	%
Mars Inc.	231		229		0.3	%
National Grid plc	201		229		0.3	%
Verizon Communication Inc.	205		218		0.3	%
Citigroup Inc.	203		215		0.3	%
Total	$	2,332	$	2,491	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 for Commercial Lines represent the combined effect of rate changes, amount of insurance and individual risk pricing decisions per unit of exposure since the prior year on policies that renewed and includes the combined effect of rate changes, amount of insurance and other changes in exposure. For Personal Lines, renewal written price increases represent the total change in premium per policy since the prior year on those policies that renewed and includes the combined effect of rate changes, amount of insurance and other changes in exposure. For Personal Lines, other changes in exposure include, but are not limited to, the effect of changes in number of drivers, vehicles and incidents, as well as changes in customer policy elections, such as deductibles and limits.

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) less fee income 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, pension settlements, 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
	Jun 30 2017		Mar 31 2017		Dec 31 2016		Sept 30 2016		Jun 30 2016		Mar 31 2016
ROE - Net income	3.9	%	5.4	%	5.2	%	7.6	%	7.3	%	8.3	%
Less: Unlock benefit (charge), before tax	—	%	—	%	—	%	0.4	%	0.2	%	0.3	%
Less: Net realized capital gains (losses) including DAC, excluded from core earnings, before tax	(0.6	)%	(0.7	)%	(1.5	)%	(1.3	)%	(1.5	)%	(1.8	)%
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	(3.6	)%	(3.7	)%	(3.8	)%	—	%	0.1	%	0.2	%
Less: Pension settlement, before tax	(4.2	)%	—	%	—	%	—	%	—	%	—	%
Less: Income tax benefit on items not included in core earnings	3.3	%	2.3	%	2.7	%	1.1	%	1.4	%	1.1	%
Less: Impact of AOCI, excluded from denominator of Core ROE	(0.3	)%	(0.1	)%	0.2	%	(0.2	)%	(0.3	)%	(0.1	)%
ROE - Core earnings	9.3	%	7.6	%	7.6	%	7.6	%	7.4	%	8.8	%

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
	Jun 30 2017		Mar 31 2017		Dec 31 2016		Sept 30 2016		Jun 30 2016		Mar 31 2016
ROE - Net income (excluding Talcott Resolution)	4.2	%	6.5	%	6.8	%	10.8	%	10.5	%	11.0	%
Less: Net realized capital gains (losses) including DAC, excluded from core earnings, before tax	(0.4	)%	(0.5	)%	(1.1	)%	—	%	(0.2	)%	(0.6	)%
Less: Restructuring and other costs, before tax	—	%	—	%	—	%	0.2	%	(0.1	)%	(0.1	)%
Less: Loss on extinguishment of debt, before tax	—	%	—	%	—	%	—	%	—	%	(0.2	)%
Less: (Loss) gain on reinsurance transaction, before tax	(5.7	)%	(5.8	)%	(6.0	)%	—	%	—	%	—	%
Less: Pension settlement, before tax	(6.6	)%	—	%	—	%	—	%	—	%	—	%
Less: Income tax benefit on items not included in core earnings	5.5	%	3.7	%	4.3	%	1.2	%	1.6	%	1.3	%
Less: Income from discontinued operations, after-tax	—	%	—	%	—	%	—	%	0.1	%	0.1	%
Less: Impact of AOCI, excluded from denominator of Core ROE	0.1	%	0.5	%	0.7	%	0.3	%	0.2	%	0.2	%
ROE - Core earnings (excluding Talcott Resolution)	11.3	%	8.6	%	8.9	%	9.1	%	8.9	%	10.3	%

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 8, 10, 14 and 20.

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 12 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.

Net investment income, excluding limited partnerships is the amount of net investment income earned from invested assets excluding the net investment income related to limited partnerships and other alternative investments.

CONSOLIDATED

	THREE MONTHS ENDED												SIX MONTHS ENDED
	Jun 30 2017		Mar 31 2017		Dec 31 2016		Sept 30 2016		Jun 30 2016		Mar 31 2016		Jun 30 2017		Jun 30 2016
Total net investment income	$	715	$	728	$	758	$	772	$	735	$	696	$	1,443	$	1,431
Limited partnerships and other alternative investments	48		70		73		93		40		8		118		48
Net Investment Income excluding limited partnerships	$	667	$	658	$	685	$	679	$	695	$	688	$	1,325	$	1,383

PROPERTY & CASUALTY

	THREE MONTHS ENDED												SIX MONTHS ENDED
	Jun 30 2017		Mar 31 2017		Dec 31 2016		Sept 30 2016		June 30 2016		Mar 31 2016		Jun 30 2017		June 30 2016
Total net investment income	$	302	$	310	$	310	$	305	$	292	$	272	$	612	$	564
Limited partnerships and other alternative investments	32		45		36		36		23		6		77		29
Net Investment Income excluding limited partnerships	$	270	$	265	$	274	$	269	$	269	$	266	$	535	$	535

Annualized investment yield, excluding limited partnerships is the annualized net investment income excluding limited partnerships divided by the monthly average invested assets at amortized cost, excluding repurchase agreement and securities lending collateral, derivatives book value, and limited partnerships invested assets.

CONSOLIDATED

	THREE MONTHS ENDED												SIX MONTHS ENDED
	Jun 30 2017		Mar 31 2017		Dec 31 2016		Sept 30 2016		Jun 30 2016		Mar 31 2016		Jun 30 2017		Jun 30 2016
Annualized investment yield	4.2	%	4.3	%	4.4	%	4.5	%	4.2	%	4.0	%	4.2	%	4.1	%
Annualized investment yield on limited partnerships and other alternative investments	8.0	%	11.6	%	12.1	%	15.2	%	6.1	%	1.2	%	9.9	%	3.6	%
Annualized investment yield excluding limited partnerships and other alternative investments	4.1	%	4.0	%	4.2	%	4.1	%	4.1	%	4.1	%	4.0	%	4.1	%

PROPERTY & CASUALTY

	THREE MONTHS ENDED												SIX MONTHS ENDED
	Jun 30 2017		Mar 31 2017		Dec 31 2016		Sept 30 2016		June 30 2016		Mar 31 2016		Jun 30 2017		June 30 2016
Annualized investment yield	4.1	%	4.2	%	4.2	%	4.1	%	3.9	%	3.7	%	4.1	%	3.8	%
Annualized investment yield on limited partnerships and other alternative investments	9.6	%	13.6	%	11.0	%	11.4	%	6.9	%	1.7	%	11.8	%	4.2	%
Annualized investment yield excluding limited partnerships and other alternative investments	3.8	%	3.7	%	3.9	%	3.8	%	3.8	%	3.8	%	3.8	%	3.8	%