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 26, 2018

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 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 26, 2018, The Hartford Financial Services Group, Inc. (the "Company") issued (i) a press release announcing its financial results for the quarterly period ended June 30, 2018, and (ii) its Investor Financial Supplement (“IFS”) relating to its financial results for the quarterly period ended June 30, 2018. 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 26, 2018
99.2	Investor Financial Supplement of The Hartford Financial Services Group, Inc. for the quarterly period ended June 30, 2018

SIGNATURE

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

Date:	July 26, 2018	By:	/s/ Scott R. Lewis
		Name:	Scott R. Lewis
		Title:	Senior Vice President and Controller

EX-99.1

NEWS RELEASE

The Hartford Reports Second Quarter2018 Income From Continuing Operations, After Tax, Of $1.19 Per Diluted Share And Core Earnings Of $1.13 Per Diluted Share

• Income from continuing operations, after tax, totaled $434 million compared with a second quarter2017 loss from continuing operations, after tax, of $152 million ($0.42 per diluted share), which included a $488 million, after tax, pension settlement charge

• Core earnings* were $412 million, up 36% from $303 million ($0.81 per diluted share), in second quarter2017 due to higher income before income taxes in the Commercial Lines, Group Benefits and Mutual Funds segments and the favorable impact of a lower U.S. corporate tax rate

• Property and casualty (P&C) combined ratio of 95.7 decreased 1.4 points from second quarter2017 due to higher favorable prior accident year development (PYD) and a better underlying combined ratio*, partially offset by higher current accident year catastrophe losses; P&C underlying combined ratio of 90.3 improved 1.3 points from second quarter2017, reflecting better results in Commercial Lines and Personal Lines

• Group Benefits net income of $96 million rose 39% from second quarter2017 primarily due to the fourth quarter 2017 acquisition, an improved disability loss ratio, and the favorable impact of a lower U.S. corporate tax rate

• Book value per diluted share of $34.44 declined 7% from Dec. 31, 2017, due to lower net unrealized capital gains from    higher interest rates and wider credit spreads and the sale of Talcott Resolution; book value per diluted share (excluding accumulated other comprehensive income (AOCI))* was $38.15, up 8%

* 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

HARTFORD, Conn., July 26, 2018 – The Hartford (NYSE: HIG) reported second quarter2018 income from continuing operations, after tax, of $434 million compared with a loss from continuing operations of $152 million in second quarter2017, which included a $488 million, after tax, pension settlement charge. Excluding the impact of this charge, second quarter 2018 income from continuing operations rose $98 million over second quarter 2017 due to higher Commercial Lines, Group

1

Benefits and Mutual Funds income before income taxes and the benefit of the lower U.S. corporate tax rate. Income from continuing operations, after tax, per diluted share was $1.19 compared with a loss from continuing operations, after tax, per diluted share of $0.42 in second quarter 2017.

Core earnings of $412 million, or $1.13 per diluted share*, in second quarter2018 increased 36% from$303 million, or $0.81 per diluted share, in second quarter2017 driven by the Commercial Lines, Group Benefits and Mutual Funds segments. In addition to the benefit of a lower U.S. corporate tax rate compared with second quarter 2017, the improvement in core earnings was due to Commercial Lines underwriting results, including favorable PYD, higher Group Benefits core earnings due to the contribution from the fourth quarter 2017 acquisition and favorable disability results, and higher Mutual Funds assets under management.

"Consistent execution and sharp focus on achieving our strategic and financial goals led to another strong quarter for The Hartford," said The Hartford’s Chairman and CEO Christopher Swift. "Higher income before income taxes from Commercial Lines, Group Benefits and Mutual Funds, as well as the benefit of a lower U.S. corporate tax rate, drove core earnings per diluted share of $1.13 up 40% from last year, while book value per diluted share, excluding AOCI, rose 8% since Dec. 31, 2017. Looking across all the businesses, I am very pleased with our financial performance and our progress on strategic product, distribution and technology initiatives, and the Group Benefits integration that continues to go very well and remains on schedule. Supported by our improved financial flexibility and financial results, we announced a 20% increase in our common dividend last week."

The Hartford’s President Doug Elliot said, “P&C and Group Benefits results reflect our disciplined approach to pricing and underwriting in markets that remain competitive. I’m pleased with our pricing progress across Commercial Lines, with a 70 basis point sequential quarter increase in renewal written pricing. While catastrophe losses were higher this quarter than a year ago, P&C net income increased 27% over second quarter 2017, including improved underlying margins in both Commercial Lines and Personal Lines. Group Benefits net income grew 39%, including the benefit of the acquisition, higher sales and strong persistency, as well as lower loss and expense ratios and tax rates."

2

FINANCIAL RESULTS SUMMARY

($ in millions except per share data)	Three Months Ended
	Jun 30 2018	Jun 30 2017	Change¹
Net income (loss) by segment:
Commercial Lines	$372	$258	44%
Personal Lines	6	24	(75%)
P&C Other Operations	5	20	(75%)
Property & Casualty	383	302	27%
Group Benefits	96	69	39%
Mutual Funds	37	24	54%
Sub-total	516	395	31%
Corporate	66	(435)	NM
Net income (loss)	$582	$(40)	NM
Less: Income from discontinued operations, after tax	148	112	32%
Income (loss) from continuing operations, after tax	$434	$(152)	NM
Less: Net realized capital gains (losses), excluded from core earnings, before tax	50	53	(6%)
Less: Loss on extinguishment of debt, before tax	(6)	—	(100)%
Less: Pension settlement, before tax	—	(750)	100%
Less: Integration and transaction costs associated with acquired business, before tax	(11)	—	(100)%
Less: Income tax benefit (expense), including amounts related to before tax items excluded from core earnings	(11)	242	NM
Core earnings	$412	$303	36%
Weighted average diluted common shares outstanding	364.2	372.3	(2%)
Income (loss) from continuing operations per diluted share2 3	$1.19	$(0.42)	NM
Net income (loss) per diluted share2 3	$1.60	$(0.11)	NM
Core earnings per diluted share2 3	$1.13	$0.81	40%
Select financial measures:
Common shares outstanding and dilutive potential common shares	364.3	369.1	(1%)
Book value per diluted share	$34.44	$46.84	(26%)
Book value per diluted share (excluding AOCI)	$38.15	$45.50	(16%)
Net income (loss) ROE4	(15.4)%	3.9%	(19.3)
Core earnings ROE*4	8.4%	6.9%	1.5
Select operating data:
Net investment income	$428	$395	8%
Annualized investment yield, before tax, excluding limited partnerships and other alternative investments (LPs)*	3.7%	3.8%	(0.1)
Annualized LP yield, before tax	9.5%	10.1%	(0.6)
P&C net investment income	$301	$302	—%
P&C annualized investment yield, before tax, excluding LPs*	3.8%	3.8%	—
Group Benefits net investment income	$115	$88	31%
Group Benefits annualized investment yield, before tax, excluding LPs*	3.9%	4.3%	(0.4)

3

[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] For the three months ended Jun. 30, 2017, weighted average shares outstanding used in calculating net loss per share excludes the effect of dilutive securities of 6.3 million shares. The calculation of core earnings per share includes the effect of dilutive securities in all periods presented. In periods where a net loss before discontinued operations or a core loss is recognized, inclusion of incremental dilution is antidilutive

[4] Return on equity (ROE) calculated based on last 12-months net income and core earnings, respectively; for net income ROE, the denominator is stockholders’ equity including accumulated other comprehensive income (AOCI); for core earnings ROE, the denominator is stockholders’ equity excluding AOCI

Net income was $582 million in second quarter2018 compared with a net loss of $40 million in second quarter2017, which included the pension settlement charge. Excluding the pension settlement charge, the $134 million growth in net income was due to a $98 million increase in income from continuing operations, after tax, and a $36 million increase in income from discontinued operations, after tax. Income from discontinued operations of $148 million in second quarter 2018 was principally due to an increase in the net operating loss carryover and other tax benefits retained, which reduced the loss on sale of Talcott Resolution, which closed on May 31, 2018. Second quarter2018 net income per diluted share of $1.60 compared with a net loss per diluted share of $0.11 in second quarter2017.

Second quarter2018 consolidated net investment income increased 8% to $428 million, before tax, from $395 million, before tax, in second quarter2017 primarily as a result of a higher level of invested assets due to the fourth quarter 2017 Group Benefits acquisition. Investment income from LPs in second quarter 2018 was $39 million, before tax, flat with second quarter 2017, but higher by $5 million, after tax, due to the reduction in the U.S. corporate tax rate. Annualized investment yield on LPs of 9.5% in second quarter 2018 compared with 10.1% in second quarter2017. Reflecting a generally benign credit environment, there were no impairment losses in the quarter.

The annualized investment yield, before tax, excluding LPs, was 3.7%, in second quarter2018, down from 3.8% in second quarter2017 primarily due to the impact of the acquired investment portfolio in Group Benefits. P&C investment yield, before tax, excluding LPs, was 3.8% in second quarter2018, flat with second quarter2017.

Book value per diluted share of $34.44 on June 30, 2018 decreased 7% from $37.11 as of Dec. 31, 2017. The decrease resulted principally from the sale of Talcott Resolution, which reduced AOCI by approximately $758 million, or $2.08 per diluted share. In addition to the sale, the decrease in stockholders' equity reflects higher interest rates and wider credit spreads since Dec. 31, 2017. Book value per diluted share (excluding AOCI) of $38.15 as of June 30, 2018 increased 8% from $35.29 at Dec. 31, 2017 due to a $1,068 million increase in stockholders' equity, excluding AOCI, from net income in excess of common stock dividends.

Return on equity (ROE), which is calculated on a 12-month trailing basis, was a net loss ROE of 15.4% in second quarter2018 compared with net income ROE of 3.9% in second quarter2017. The second quarter2018 ROE calculation includes the fourth quarter 2017 loss on sale of Talcott Resolution and the fourth quarter 2017 charge related to U.S. corporate tax reform, while second quarter 2017 ROE includes the fourth quarter 2016 charge for the asbestos and environmental loss reserve development cover and the second quarter2017 pension settlement charge.

Core earnings ROE was 8.4% in second quarter2018, up 1.5 points from6.9% in second quarter2017 due to higher core earnings and lower average stockholders' equity, excluding AOCI.

4

SECOND QUARTER 2018 SEGMENT FINANCIAL RESULTS SUMMARY

	Three Months Ended
($ in millions)	Jun 30 2018	Jun 30 2017	Change¹
Core earnings (losses)
P&C segments:
Commercial Lines	$341	$238	43%
Personal Lines	2	20	(90)%
P&C Other Operations	3	18	(83)%
Property & Casualty	346	276	25%
Group Benefits	104	61	70%
Mutual Funds	38	24	58%
Sub-total	488	361	35%
Corporate	(76)	(58)	(31)%
Total	$412	$303	36%
Select operating data:
Commercial Lines
Combined ratio	90.1	94.6	(4.5)
Impact of catastrophes and PYD on combined ratio	—	3.7	(3.7)
Underlying combined ratio	90.0	90.9	(0.9)
Personal Lines
Combined ratio	104.9	101.4	3.5
Impact of catastrophes and PYD on combined ratio	14.5	8.8	5.7
Underlying combined ratio	90.4	92.6	(2.2)
Group Benefits
Loss ratio	75.5%	76.1%	(0.6)
Expense ratio	23.9%	24.5%	(0.6)
Net income margin	6.3%	7.5%	(1.2)
Core earnings margin*	6.9%	6.7%	0.2
Mutual Funds
Mutual fund and exchange-traded products (ETP) net flows	$473	$1,347	(65)%
Total Mutual Funds segment assets under management	$117,041	$107,679	9%

5

Commercial Lines

• Commercial Lines net income of $372 million increased from $258 million in second quarter2017, and core earnings of $341 million increased from $238 million in second quarter2017 primarily due to an $80 million improvement in the underwriting gain*, before tax, and lower income taxes as a result of U.S. corporate tax reform

• The underwriting gain of $173 million rose from $93 million in second quarter2017, and the combined ratio of 90.1 improved 4.5 points from 94.6 in second quarter2017, primarily due to a 4.2 point net favorable change in PYD and a 0.9 point improvement in the underlying combined ratio, partially offset by current accident year catastrophe losses that were higher by 0.5 point

◦ Net favorable PYD was $73 million, before tax, (4.2 points on the combined ratio) compared with no net PYD in second quarter2017 due to favorable workers' compensation loss cost trends in recent accident years and favorable PYD on catastrophe loss estimates, principally for 2017 hurricanes

◦ Current accident year catastrophe losses were $74 million, before tax, (4.2 points on the combined ratio), up from $63 million, before tax, (3.7 points on the combined ratio) in second quarter2017

• Excluding current accident year catastrophe losses and PYD, the underwriting gain of $174 million improved 12% from second quarter2017 and the underlying combined ratio of 90.0 was 0.9 point better than in second quarter 2017 principally due to lower non-catastrophe property losses, partially offset by a higher expense ratio and margin deterioration in Middle Market workers' compensation

◦ Small Commercial improved 1.6 points to 85.6 primarily due to lower non-catastrophe property, general liability and auto losses, partially offset by a higher expense ratio

◦ Middle Market improved 0.8 point to 94.1 due to lower non-catastrophe property losses, partially offset by margin deterioration in workers' compensation and a higher expense ratio

◦ Specialty Commercial rose 2.6 points to 98.5 primarily due to higher expenses compared with second quarter 2017

• Commercial Lines written premiums of $1.7 billion were up 2% from second quarter2017 due to strong Middle Market and Specialty Commercial premium growth

◦ Middle Market grew 4% over second quarter 2017 due to a 29% increase in new business premium and a 2 point improvement in policy count retention. New business growth was principally driven by workers' compensation

◦ Specialty Commercial written premiums grew 9% over second quarter 2017 due to growth in Bond and Financial Products

◦ Small Commercial written premiums declined 1% from second quarter 2017 as 5% growth in new business was offset by lower renewal premium in workers' compensation and auto

6

Personal Lines

• Personal Lines net income of $6 million decreased from $24 million in second quarter2017, and core earnings of $2 million were down from $20 million in second quarter 2017 as an improved underlying auto underwriting margin and better non-catastrophe property losses in homeowners were more than offset by higher current accident year catastrophe losses, a change to net unfavorable PYD, higher expenses and lower earned premium

• Underwriting loss of $42 million compared with a loss of $13 million in second quarter2017 and the combined ratio of 104.9 deteriorated 3.5 points from 101.4 in second quarter2017 primarily due to a 3.4 point increase in current accident year catastrophe losses, a 2.3 point unfavorable change in PYD and a 2.9 point increase in the expense ratio, partially offset by a 5.0 point improvement in the current accident year loss ratio before catastrophes

◦ Current accident year catastrophe losses totaled $114 million, before tax (13.3 points on the combined ratio), up from $92 million, before tax (9.9 points on the combined ratio), in second quarter2017

◦ PYD was an unfavorable $10 million, before tax (1.2 points on the combined ratio), a reversal from net favorable PYD of $10 million, before tax (1.1 points on the combined ratio), in second quarter2017. Although second quarter 2018 had favorable PYD on 2017 catastrophe losses, this was more than offset by a reduction in the previously-recorded expected recovery under the company's 2017 property catastrophe aggregate reinsurance treaty, resulting in net unfavorable PYD in the period. The company no longer expects to recover losses under the 2017 treaty as aggregate ultimate losses for 2017 catastrophe events are now projected to be less than the attachment point of $850 million

• Excluding catastrophe losses and PYD, the underwriting gain improved 19% to $82 million primarily due to stronger underlying auto underwriting results. The underlying combined ratio of 90.4 was 2.2 points better than second quarter2017 due to a 5.0 point reduction in the current accident year loss ratio before catastrophes, principally due to earned pricing increases in both auto and homeowners and lower non-catastrophe weather homeowners losses. The improvement in the current accident year loss ratio before catastrophes was partially offset by a 2.9 point increase in the expense ratio largely due to higher marketing spending as a result of the company's initiatives to generate new business, as well as lower earned premium than in second quarter 2017

• The auto combined ratio improved 1.1 points to 99.7 from 100.8 in second quarter2017 due to a lower current accident year loss ratio before catastrophes, partially offset by a higher expense ratio and higher current accident year catastrophe losses. The auto underlying combined ratio of 96.5 was 2.6 points better than in second quarter 2017 due to earned pricing increases in excess of loss costs, partially offset by higher marketing expenses

7

• The homeowners combined ratio deteriorated to 117.8 from 103.4 in second quarter2017 due to higher current accident year catastrophe losses and a change to net unfavorable PYD largely related to the reversal of the recovery on the 2017 treaty. The underlying combined ratio was 76.4, a 1.2 point improvement over second quarter2017 due to lower non-catastrophe weather losses

• Personal Lines written premiums of $857 million declined 7% from second quarter 2017 largely due to the effect of pricing actions on policy count retention over the period. In second quarter 2018, new business premium increased by $3 million, or 6%, over second quarter 2017

◦ Auto new business premium of $42 million was up 11% from $38 million in second quarter 2017; Homeowners new business premium of $11 million was down 8% from $12 million in second quarter 2017

◦ Auto and homeowners policy count retention of 82% and 84%, respectively, both increased by 1 point from second quarter 2017 and by 2 points from first quarter 2018

Group Benefits

• Group Benefits net income of $96 million increased from $69 million in second quarter2017 as a result of several factors, including: higher earned premiums and net investment income from the fourth quarter 2017 acquisition; premium growth in 2018 due to strong sales and persistency; a decrease in the total loss and expense ratios; and the lower U.S. corporate tax rate, offset slightly by integration costs in second quarter 2018. The net income margin declined to 6.3% from 7.5% in second quarter2017 in large part due to integration costs of $9 million, after tax, which did not occur in 2017, as well as a decrease in net realized capital gains

• Core earnings, which do not include integration costs but do include $16 million, before tax, of amortization of intangible assets related to the acquisition, were $104 million, up 70% from $61 million in second quarter2017 due to the contribution from the acquisition, favorable disability results, and a lower U.S. corporate tax rate. The core earnings margin of 6.9% was up slightly from 6.7% in second quarter2017

• Fully insured ongoing premiums, excluding buyouts, of $1,352 million increased 69% from $802 million in second quarter2017 primarily due to the acquisition, but also due to strong sales and persistency in 2018. Fully insured ongoing sales, excluding buyouts, of $85 million increased 27% from $67 million in second quarter2017

• The total loss ratio of 75.5% decreased 0.6 point from second quarter2017 as a lower group disability loss ratio was largely offset by a higher group life loss ratio

◦ The 4.6 point improvement in the group disability loss ratio was due to better incidence trends and continued strong recoveries

◦ The 3.2 point increase in the group life loss ratio primarily reflects the higher loss ratio of the acquired book due to its greater proportion of national accounts business, as well as higher mortality compared with second quarter 2017, though significantly improved compared with first quarter 2018

Mutual Funds

8

• Mutual Funds net income of $37 million increased from $24 million in second quarter2017 primarily due to a $20 million, before tax, increase in investment management fee income due to growth in Mutual Funds segment assets under management (AUM) and the lower U.S. corporate tax rate.

• Core earnings of $38 million increased from $24 million in second quarter 2017 for the same reasons as the growth in net income

• Mutual Funds segment AUM rose 9% compared with second quarter 2017 to $117 billion due to market appreciation and positive net flows over the last twelve months

• Mutual fund and ETP net flows totaled $0.5 billion in second quarter 2018, including $0.2 billion of ETP net flows, down from $1.3 billion in second quarter2017. Over the past four quarters, mutual fund and ETP net flows totaled $1.9 billion, contributing to the growth in AUM

Corporate

• Corporate net income was $66 million compared with a net loss of $435 million in second quarter 2017, which included the $488 million, after tax, pension settlement charge; results for both periods included income from discontinued operations

• Income from discontinued operations included in Corporate net income was $148 million, after tax, compared with $112 million, after tax, in second quarter 2017. Income from discontinued operations in second quarter 2018 was principally attributable to an increase in retained net tax benefits from Talcott Resolution due to a higher estimated tax basis of the sold business

• Core losses, which do not include income from discontinued operations, were $76 million compared with core losses of $58 million in second quarter2017 primarily due to a lower tax benefit as a result of the reduction in the U.S. corporate tax rate in 2018, partially offset by higher net investment and fee income compared with second quarter2017

◦ Net investment income of $11 million, before tax, more than doubled from $5 million, before tax in second quarter 2017 as a result of higher average invested assets at the holding company due to proceeds from the sale of Talcott Resolution as well as higher short-term interest rates

◦ Beginning in June 2018, Corporate core losses include fee income from managing the investments of Talcott Resolution. These fees, which totaled $4 million, before tax, for the one month period in second quarter 2018, were mostly offset by associated expenses

◦ In second quarter 2018, Corporate core losses included $11 million, before tax, of expenses formerly allocated to Talcott Resolution compared with $13 million, before tax, of such expenses in second quarter 2017. The company continues to expect that these costs will be eliminated over the next 12-18 months

• On June 15, 2018, The Hartford called at par $500 million of 8.125% junior subordinated debt due 2068, as previously announced, which will reduce future interest expense

CONFERENCE CALL

The Hartford will discuss its second quarter2018 financial results on a webcast at 9 a.m. EDT on Friday, July 27, 2018. 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, 2018, and the Second Quarter2018 Financial Results Presentation, both of which are available at https://ir.thehartford.com.

ABOUT THE HARTFORD

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

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

HIG-F

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

Media Contacts	Investor Contacts
Michelle Loxton	Sabra Purtill, CFA
860-547-7413	860-547-8691
michelle.loxton@thehartford.com	sabra.purtill@thehartford.com
Matthew Sturdevant	Sean Rourke
860-547-8664	860-547-5688
matthew.sturdevant@thehartford.com	sean.rourke@thehartford.com

9

10

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATING INCOME STATEMENTS
Three Months Ended June 30, 2018
($ in millions)
	Commercial Lines			Personal Lines			P&C Other Ops			Group Benefits			Mutual Funds			Corporate			Consolidated
Earned premiums	$	1,745		$	856		$	—		$	1,357		$	—		$	—		$	3,958
Fee income	8			10			—			44			261			4			327
Net investment income	242			37			22			115			1			11			428
Other revenues	(1		)	23			—			—			—			2			24
Net realized capital gains (losses)	42			5			3			2			(1		)	1			52
Total revenues	2,036			931			25			1,518			261			18			4,789
Benefits, losses, and loss adjustment expenses	978			681			16			1,059			—			4			2,738
Amortization of DAC	259			70			—			11			4			—			344
Insurance operating costs and other expenses	343			174			3			317			211			19			1,067
Loss on extinguishment of debt	—			—			—			—			—			6			6
Interest expense	—			—			—			—			—			79			79
Amortization of other intangible assets	1			1			—			16			—			—			18
Total benefits and expenses	1,581			926			19			1,403			215			108			4,252
Income (loss) before income taxes	455			5			6			115			46			(90		)	537
Income tax expense (benefit)	83			(1		)	1			19			9			(8		)	103
Income (loss) from continuing operations, after-tax	372			6			5			96			37			(82		)	434
Income from discontinued operations, after-tax	—			—			—			—			—			148			148
Net income (loss)	372			6			5			96			37			66			582
Less: Net realized capital gains (losses), excluded from core earnings, before tax	40			6			3			—			(1		)	2			50
Less: Integration and transaction costs associated with acquired business, before tax	—			—			—			(11		)	—			—			(11		)
Less: Loss on extinguishment of debt, before tax	—			—			—			—			—			(6		)	(6		)
Less: Income tax benefit (expense)	(9		)	(2		)	(1		)	3			—			(2		)	(11		)
Less: Income from discontinued operations, after-tax	—			—			—			—			—			148			148
Core earnings (losses)	$	341		$	2		$	3		$	104		$	38		$	(76	)	$	412

11

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		Corporate			Consolidated
Earned premiums	$	1,720		$	930		$	—		$	805		$	—	$	—		$	3,455
Fee income	9			11			—			19			247		—			286
Net investment income	240			35			27			88			—		5			395
Other revenues	—			23			—			—			—		—			23
Net realized capital gains (losses)	32			5			5			13			—		—			55
Total revenues	2,001			1,004			32			925			247		5			4,214
Benefits, losses, and loss adjustment expenses	1,057			734			—			628			—		1			2,420
Amortization of DAC	252			79			—			8			5		1			345
Insurance operating costs and other expenses	326			160			3			193			204		764			1,650
Interest expense	—			—			—			—			—		79			79
Amortization of other intangible assets	—			1			—			—			—		—			1
Loss on extinguishment of debt	—			—			—			—			—		—			—
Total benefits and expenses	1,635			974			3			829			209		845			4,495
Income (loss) before income taxes	366			30			29			96			38		(840		)	(281		)
Income tax expense (benefit)	108			6			9			27			14		(293		)	(129		)
Income (loss) from continuing operations, after-tax	258			24			20			69			24		(547		)	(152		)
Income from discontinued operations, after-tax	—			—			—			—			—		112			112
Net income (loss)	258			24			20			69			24		(435		)	(40		)
Less: Net realized capital gains (losses), excluded from core earnings, before tax	32			5			4			13			—		(1		)	53
Less: Pension settlement, before tax	—			—			—			—			—		(750		)	(750		)
Less: Income tax benefit (expense)	(12		)	(1		)	(2		)	(5		)	—		262			242
Less: Income from discontinued operations, after-tax	—			—			—			—			—		112			112
Core earnings (losses)	$	238		$	20		$	18		$	61		$	24	$	(58	)	$	303

12

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 quarter2018, which is available on The Hartford's website,https://ir.thehartford.com.

Annualized investment yield, excluding limited partnerships and other alternative investmentsis the annualized net investment income on a Consolidated, P&C or Group Benefits level excluding limited partnerships and other alternative investments divided by such monthly average invested assets at amortized cost, excluding repurchase agreement and securities lending collateral, derivatives book value, and limited partnerships and other alternative investments. The company believes that annualized net investment income, excluding limited partnerships, provides investors with an important measure of the trend in investment earnings because it excludes the impact of the volatility in returns related to limited partnerships.

	Three Months Ended
	Jun 30 2018		Jun 30 2017		Jun 30 2018		Jun 30 2017		Jun 30 2018		Jun 30 2017
	Consolidated				P&C				Group Benefits
Annualized investment yield	3.9	%	4.1	%	4.0	%	4.1	%	4.1	%	4.5	%
Less: Impact on annualized investment yield on limited partnerships and other alternative investments	(0.2	)%	(0.3	)%	(0.2	)%	(0.3	)%	(0.2	)%	(0.2	)%
Annualized investment yield excluding limited partnerships and other alternative investments	3.7	%	3.8	%	3.8	%	3.8	%	3.9	%	4.3	%

Bookvalue per diluted share (excluding AOCI): Book value per diluted share (excluding AOCI) is calculated based upon non-GAAP financial measures. It is calculated by dividing (a) total stockholders' equity, excluding AOCI, after tax, by (b) common shares outstanding or common shares outstanding and dilutive potential common shares. The Company provides this measure to enable investors to analyze the amount of the Company's net worth that is primarily attributable to the Company's business operations. The Company believes it 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 measures. A reconciliation of book value per diluted share, including AOCI to book value per diluted share (excluding AOCI) is set forth below.

13

	As of
	Jun 30 2018	Dec 31 2017	Change
Book value per diluted share	$34.44	$37.11	(7%)
Less: Per diluted share impact of AOCI	$(3.71)	$1.82	NM
Book value per diluted share (excluding AOCI)	$38.15	$35.29	8%

Core Earnings: The Hartford uses thenon-GAAP measure core earnings as an important measure of the company’s operating performance. The Hartford believes that the measure core earnings provides investors with a valuable measure of the performance of the company’s ongoing businesses because it reveals trends in our insurance and financial services businesses that may be obscured by including the net effect of certain realized capital gains and losses, certain restructuring and other costs, integration and transaction costs in connection with an acquired business, pension settlements, loss on extinguishment of debt, gains and losses on reinsurance transactions, income tax benefit from reduction in deferred income tax valuation allowance, impact of tax reform on net deferred tax assets, and results of discontinued operations. 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. These net realized gains and losses are directly related to an offsetting item included in the income statement such as net investment income. Results from discontinued operations are excluded from core earnings for businesses held for sale because such results could obscure trends in our ongoing businesses that are valuable to our investors' ability to assess the company's financial performance.

Net income (loss) and income from continuing operations (during periods when the company reports significant discontinued operations) are the most directly comparable U.S. GAAP measures to core earnings. Income from continuing operations is net income, excluding the income (loss) from discontinued operations. Core earnings should not be considered as a substitute for net income (loss) or income (loss) from continuing operations and does not reflect the overall profitability of the company’s business. Therefore, The Hartford believes that it is useful for investors to evaluate net income (loss), income (loss) from continuing operations and core earnings when reviewing the company’s performance.

A reconciliation of net income (loss) to income from continuing operations to core earnings for the quarterly periods ended June 30, 2018 and 2017, 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, 2018.

14

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, 2018 and 2017, is set forth below.

	Three Months Ended
Margin	Jun 30 2018	Jun 30 2017	Change
Net income margin	6.3%	7.5%	(1.2)
Less: Net realized capital gains (losses) excluded from core earnings, after tax	(0.1)%	0.8%	(0.9)
Less: Effect of integration and transaction costs, net of tax, on after tax margin	(0.5)%	—%	(0.5)
Core earnings margin	6.9%	6.7%	0.2

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, 2018 and 2017 is provided in the table below.

15

	Three Months Ended
	Jun 30 2018	Jun 30 2017	Change
PER SHARE DATA
Diluted earnings (losses) per common share:
Net income (loss) per share1	$1.60	$(0.11)	NM
Less: income from discontinued operations, after tax	0.41	0.31	32%
Income from continuing operations	$1.19	$(0.42)	NM
Less: Net realized capital gains (losses), excluded from core earnings, before tax	0.14	0.14	—%
Less: Loss on extinguishment of debt, before tax	(0.02)	-	NM
Less: Pension settlement, before tax	-	(2.01)	NM
Less: Integration and transaction costs associated with an acquired business	(0.03)	-	NM
Less: Income tax (expense) benefit on items excluded from core earnings	(0.03)	0.64	NM
Core earnings per share1	$1.13	$0.81	40%

[1] Includes dilutive potential common shares

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

	Three Months Ended
	Jun 30 2018		Jun 30 2017		Jun 30 2018		Jun 30 2017		Jun 30 2018		Jun 30 2017
	Consolidated				P&C				Group Benefits
Total net investment income	$	428	$	395	$	301	$	302	$	115	$	88
Less: Income from limited partnerships and other alternative assets	39		39		33		32		6		7
Net investment income excluding limited partnerships and other alternative investments	$	389	$	356	$	268	$	270	$	109	$	81

16

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

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

	Last Twelve Months Ended
	Jun 30 2018	Jun 30 2017
Net income (loss) ROE	(15.4)%	3.9%
Less: Net realized capital gains (losses) excluded from core earnings, before tax	0.7	(0.2)
Less: Loss on reinsurance transactions, before tax	—	(3.6)
Less: Pension settlement, before tax	—	(4.2)
Less: Integration and transaction costs associated with an acquired business	(0.3)	—
Less: Income tax (expense) benefit on items not included in core earnings	(6.1)	3.5
Less: Income (loss) from discontinued operations, after tax	(18.4)	1.8
Less: Impact of AOCI, excluded from core earnings ROE	0.3	(0.3)
Core earnings ROE	8.4%	6.9%

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 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 Quarter2018 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

17

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, 2018 and 2017, is set forth in the Investor Financial Supplement for quarter ended June 30, 2018, 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 2017 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, changes in trade regulation including tariffs and other barriers or other potentially adverse macroeconomic developments on the demand for our products and returns in our investment portfolios; financial risk related to the continued reinvestment of our investment portfolios; 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

18

current and future distribution channels and advisory firms; the uncertain effects of emerging claim and coverage issues;

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 credit risk with counterparties associated with investments, derivatives, premiums receivable, reinsurance recoverables and indemnifications provided by third parties in connection with previous dispositions; the potential for losses due to our reinsurers' unwillingness or inability to meet their obligations under reinsurance contracts and the availability, pricing and adequacy of reinsurance to protect us against losses; regulatory limitations on the ability of the company and certain of its subsidiaries to declare and pay dividends;

Risks Relating to Estimates, Assumptions and Valuations:risk associated with the use of analytical models in making decisions in key areas such as underwriting, 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 significant uncertainties that limit our ability to estimate the ultimate reserves necessary for asbestos and environmental claims;

Strategic and Operational Risks:the company’s ability to maintain the availability of its systems and safeguard the security of its data in the event of a disaster, cyber or other information security incident or other unanticipated event; the risks, challenges and uncertainties associated with capital management plans, 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;

19

EX-99.2

INVESTOR FINANCIAL SUPPLEMENT

June 30, 2018

On December 3, 2017, The Hartford entered into an agreement to sell its life and annuity run-off business (formerly known as Talcott Resolution). The transaction closed on May 31, 2018. The assets and liabilities of this business had been accounted for as held for sale until closing and operating results of the life and annuity business is included in discontinued operations for all periods prior to the closing date.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

	As of July 24, 2018
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
	Maxum Casualty Insurance Company	A+	NR	NR
	Maxum Indemnity Company	A+	NR	NR
	- Hartford Fire Insurance Company ratings are on stable outlook at A.M. Best, Moody’s, and Standard and Poor’s
	- Hartford Life and Accident Insurance Company ratings are on stable outlook at A.M. Best, Moody’s, and Standard and Poor’s
Internet address:	- Maxum Casualty Insurance Company ratings are on stable outlook at A.M. Best
http://www.thehartford.com	- Maxum Indemnity Company ratings are on stable outlook at A.M. Best
	Other Ratings:
	The Hartford Financial Services Group, Inc.:
	Senior debt	a-	BBB+	Baa1
Contacts:	Commercial paper	AMB-1	A-2	P-2
Sabra Purtill	Junior subordinated debentures	bbb	BBB-	Baa2
Senior Vice President
Investor Relations & Treasurer	- Hartford Financial Services Group, Inc. senior debt and junior subordinated debentures are on stable outlook at A.M. Best, Standard and Poor’s, and Moody's.
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	19
GROUP BENEFITS	Income Statements	20
	Supplemental Data	21
MUTUAL FUNDS	Income Statements	22
	Asset Value Rollforward - Assets Under Management By Asset Class	23
CORPORATE	Income Statements	24
INVESTMENTS	Investment Earnings Before Tax - Consolidated	25
	Investment Earnings Before Tax - Property & Casualty	26
	Investment Earnings Before Tax - Group Benefits	27
	Net Investment Income	28
	Components of Net Realized Capital Gains (Losses)	29
	Composition of Invested Assets	30
	Invested Asset Exposures	31
APPENDIX	Basis of Presentation and Definitions	32
	Discussion of Non-GAAP and Other Financial Measures	33

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATED FINANCIAL RESULTS

	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun 30 2018			Mar 31 2018			Dec 31 2017			Sept 30 2017			Jun 30 2017			Mar 31 2017			Jun 30 2018		Jun 30 2017
HIGHLIGHTS
Net income (loss)	$	582		$	597		$	(3,703	)	$	234		$	(40	)	$	378		$	1,179	$	338
Core earnings *	$	412		$	461		$	293		$	130		$	303		$	288		$	873	$	591
Total revenues	$	4,789		$	4,691		$	4,587		$	4,192		$	4,214		$	4,169		$	9,480	$	8,383
Total assets	$60,775			$216,666			$225,260			$224,901			$226,562			$226,094
PER SHARE AND SHARES DATA
Basic earnings per common share
Income (loss) from continuing operations [4]	$	1.21		$	1.20		$	(1.56	)	$	0.40		$	(0.42	)	$	0.82		$	2.41	$	0.41
Net income (loss) [4]	$	1.62		$	1.67		$	(10.37	)	$	0.65		$	(0.11	)	$	1.02		$	3.29	$	0.92
Core earnings * [4]	$	1.15		$	1.29		$	0.82		$	0.36		$	0.83		$	0.78		$	2.44	$	1.60
Diluted earnings per common share
Income (loss) from continuing operations	$	1.19		$	1.18		$	(1.56	)	$	0.40		$	(0.42	)	$	0.80		$	2.37	$	0.40
Net income (loss)	$	1.60		$	1.64		$	(10.37	)	$	0.64		$	(0.11	)	$	1.00		$	3.24	$	0.90
Core earnings *	$	1.13		$	1.27		$	0.81		$	0.35		$	0.81		$	0.76		$	2.40	$	1.57
Weighted average common shares outstanding (basic)	358.3			357.5			357.0			360.2			366.0			371.4			357.9		368.7
Dilutive effect of stock compensation	4.0			4.4			4.8			4.5			3.8			4.2			4.2		4.0
Dilutive effect of warrants	1.9			2.0			2.1			2.3			2.5			3.0			2.0		2.8
Weighted average common shares outstanding and dilutive potential common shares (diluted)	364.2			363.9			363.9			367.0			372.3			378.6			364.1		375.5
Common shares outstanding	358.4			358.1			356.8			357.5			362.8			369.2
Book value per common share	$	35.01		$	36.70		$	37.82		$	48.20		$	47.65		$	46.07
Per common share impact of accumulated other comprehensive income [1]	$	(3.77	)	$	(0.67	)	$	1.86		$	1.63		$	1.36		$	(0.56	)
Book value per common share (excluding AOCI) *	$	38.78		$	37.37		$	35.96		$	46.57		$	46.29		$	46.63
Book value per diluted share [2]	$	34.44		$	36.06		$	37.11		$	47.33		$	46.84		$	45.25
Per diluted share impact of AOCI	$	(3.71	)	$	(0.65	)	$	1.82		$	1.61		$	1.34		$	(0.55	)
Book value per diluted share (excluding AOCI) *	$	38.15		$	36.71		$	35.29		$	45.72		$	45.50		$	45.80
Common shares outstanding and dilutive potential common shares	364.3			364.5			363.6			364.1			369.1			375.9
RETURN ON EQUITY ("ROE") [3]
Net income (loss) ROE	(15.4		%)	(19.3		%)	(20.6		%)	2.7		%	3.9		%	5.4		%
Core earnings ROE *	8.4		%	7.8		%	6.7		%	5.9		%	6.9		%	5.1		%

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

[2] The reduction in book value per diluted share from March 31, 2018 to June 30, 2018 included a $2.08 per diluted share impact of removing Talcott Resolution AOCI from the balance sheet when the business was sold effective May 31, 2018.

[3] For reconciliations of net income (loss) ROE to core earnings ROE, see Appendix, page 33.

[4] For the three months ended June 30, 2017, weighted average shares outstanding used in calculating net loss per share excludes the effect of dilutive securities of 6.3 million shares. The calculation of core earnings per share includes the effect of dilutive securities in all periods presented. In periods where a net loss before discontinued operations or a core loss is recognized, inclusion of incremental dilution is antidilutive.

* 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 2018			Mar 31 2018			Dec 31 2017			Sept 30 2017			Jun 30 2017			Mar 31 2017			Jun 30 2018			Jun 30 2017
Earned premiums	$	3,958		$	3,927		$	3,801		$	3,447		$	3,455		$	3,438		$	7,885		$	6,893
Fee income	327			323			313			291			286			278			650			564
Net investment income	428			451			394			404			395			410			879			805
Realized capital gains (losses):
Total other-than-temporary impairment (“OTTI”) losses	—			(2		)	(4		)	(4		)	(4		)	(3		)	(2		)	(7		)
OTTI losses recognized in other comprehensive income	—			2			—			3			2			2			2			4
Net OTTI losses recognized in earnings	—			—			(4		)	(1		)	(2		)	(1		)	—			(3		)
Other net realized capital gains (losses)	52			(30		)	64			27			57			25			22			82
Total net realized capital gains (losses)	52			(30		)	60			26			55			24			22			79
Other revenues	24			20			19			24			23			19			44			42
Total revenues	4,789			4,691			4,587			4,192			4,214			4,169			9,480			8,383
Benefits, losses and loss adjustment expenses	2,738			2,695			2,692			2,638			2,420			2,424			5,433			4,844
Amortization of deferred acquisition costs ("DAC")	344			342			342			341			345			344			686			689
Insurance operating costs and other expenses [1]	1,067			1,037			1,042			952			1,650			919			2,104			2,569
Loss on extinguishment of debt	6			—			—			—			—			—			6			—
Interest expense	79			80			78			79			79			80			159			159
Amortization of other intangible assets	18			18			11			1			1			1			36			2
Total benefits, losses and expenses	4,252			4,172			4,165			4,011			4,495			3,768			8,424			8,263
Income (loss) before income taxes	537			519			422			181			(281		)	401			1,056			120
Income tax expense (benefit) [2]	103			91			980			36			(129		)	98			194			(31		)
Income (loss) from continuing operations, after tax	434			428			(558		)	145			(152		)	303			862			151
Income (loss) from discontinued operations, after tax [5]	148			169			(3,145		)	89			112			75			317			187
Net income (loss)	582			597			(3,703		)	234			(40		)	378			1,179			338
Less: Net realized capital gains (losses), excluded from core earnings, before tax	50			(30		)	59			25			53			23			20			76
Less: Loss on extinguishment of debt, before tax	(6		)	—			—			—			—			—			(6		)	—
Less: Pension settlement, before tax	—			—			—			—			(750		)	—			—			(750		)
Less: Integration and transaction costs associated with acquired business, before tax [3]	(11		)	(12		)	(17		)	—			—			—			(23		)	—
Less: Income tax benefit (expense) [4]	(11		)	9			(893		)	(10		)	242			(8		)	(2		)	234
Less: Income (loss) from discontinued operations, after tax [5]	148			169			(3,145		)	89			112			75			317			187
Core earnings	$	412		$	461		$	293		$	130		$	303		$	288		$	873		$	591

[1] 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.

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

[3] Integration and transaction costs related to the Group Benefits acquisition made in October 2017.

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

[5] The three months ended December 31, 2017 included an estimated loss on sale of $3.3 billion related to the sale of Talcott Resolution, the Company's life and annuity run-off business that was sold in May, 2018. The three months ended June 30, 2018 and March 31, 2018, included a reduction in loss on sale of $151 and $62, respectively. The reduction in loss on sale in the three months ended June 30, 2018 was primarily attributable to a $133 increase in estimated retained tax benefits, primarily retained net operating loss carryovers.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

OPERATING RESULTS BY SEGMENT

	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun 30 2018			Mar 31 2018			Dec 31 2017			Sept 30 2017			Jun 30 2017			Mar 31 2017			Jun 30 2018			Jun 30 2017
Net income (loss):
Commercial Lines	$	372		$	298		$	286		$	90		$	258		$	231		$	670		$	489
Personal Lines	6			89			(74		)	8			24			33			95			57
P&C Other Operations	5			17			7			18			20			24			22			44
Property & Casualty ("P&C")	383			404			219			116			302			288			787			590
Group Benefits	96			54			109			71			69			45			150			114
Mutual Funds	37			34			33			26			24			23			71			47
Sub-total	516			492			361			213			395			356			1,008			751
Corporate [1]	66			105			(4,064		)	21			(435		)	22			171			(413		)
Net income (loss)	$	582		$	597		$	(3,703	)	$	234		$	(40	)	$	378		$	1,179		$	338
Core earnings (losses):
Commercial Lines	$	341		$	302		$	282		$	81		$	238		$	224		$	643		$	462
Personal Lines	2			89			(46		)	7			20			32			91			52
P&C Other Operations	3			17			4			18			18			21			20			39
P&C	346			408			240			106			276			277			754			553
Group Benefits	104			85			67			66			61			40			189			101
Mutual Funds	38			34			37			26			24			23			72			47
Sub-total	488			527			344			198			361			340			1,015			701
Corporate	(76		)	(66		)	(51		)	(68		)	(58		)	(52		)	(142		)	(110		)
Core earnings	$	412		$	461		$	293		$	130		$	303		$	288		$	873		$	591

[1] For the periods up to the sale, includes income (loss) from discontinued operations from the Company's life and annuity run-off business accounted for as held for sale.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CONSOLIDATING BALANCE SHEETS

	PROPERTY & CASUALTY				GROUP BENEFITS						MUTUAL FUNDS				CORPORATE						CONSOLIDATED
	Jun 30 2018		Dec 31 2017		Jun 30 2018			Dec 31 2017			Jun 30 2018		Dec 31 2017		Jun 30 2018			Dec 31 2017			Jun 30 2018			Dec 31 2017
Investments
Fixed maturities, available-for-sale, at fair value	$	25,415	$	25,571	$	9,932		$	10,489		$	34	$	49	$	813		$	855		$	36,194		$	36,964
Fixed maturities, at fair value using the fair value option	25		30		9			11			2		—		—			—			36			41
Equity securities, at fair value	732		—		70			—			46		—		155			—			1,003			—
Equity securities, available-for-sale, at fair value	—		749		—			79			—		27		—			157			—			1,012
Mortgage loans	2,397		2,315		958			860			—		—		—			—			3,355			3,175
Limited partnerships and other alternative investments	1,425		1,375		245			213			—		—		—			—			1,670			1,588
Other investments	82		85		9			11			—		—		3			—			94			96
Short-term investments	998		1,268		401			398			183		146		1,714			458			3,296			2,270
Total investments [1]	31,074		31,393		11,624			12,061			265		222		2,685			1,470			45,648			45,146
Cash [1]	95		156		35			12			12		8		5			4			147			180
Premiums receivable and agents’ balances	3,570		3,511		431			399			—		—		—			—			4,001			3,910
Reinsurance recoverables	3,324		3,476		241			236			—		—		347			349			3,912			4,061
DAC	600		594		53			47			8		9		1			—			662			650
Deferred income taxes	115		51		(51		)	(103		)	5		6		1,213			1,210			1,282			1,164
Goodwill	157		157		723			723			180		180		230			230			1,290			1,290
Property and equipment, net	821		837		111			118			—		—		81			79			1,013			1,034
Other intangible assets	71		28		587			620			11		11		—			—			669			659
Other assets	968		897		276			365			100		111		807			857			2,151			2,230
Assets held for sale	—		—		—			—			—		—		—			164,936			—			164,936
Total assets	$	40,795	$	41,100	$	14,030		$	14,478		$	581	$	547	$	5,369		$	169,135		$	60,775		$	225,260
Unpaid losses and loss adjustment expenses	$	23,631	$	23,775	$	8,449		$	8,512		$	—	$	—	$	—		$	—		$	32,080		$	32,287
Reserves for future policy benefits	—		—		437			441			—		—		231			272			668			713
Other policyholder funds and benefits payable	—		—		465			492			—		—		319			324			784			816
Unearned premiums	5,412		5,282		34			40			—		—		—			—			5,446			5,322
Debt	—		—		—			—			—		—		4,675			4,998			4,675			4,998
Other liabilities	1,625		2,061		552			774			215		197		2,184			2,156			4,576			5,188
Liabilities held for sale	—		—		—			—			—		—		—			162,442			—			162,442
Total liabilities	$	30,668	$	31,118	$	9,937		$	10,259		$	215	$	197	$	7,409		$	170,192		$	48,229		$	211,766
Common stockholders' equity, excluding AOCI	9,933		9,267		4,115			3,998			366		350		(515		)	(784		)	13,899			12,831
AOCI, after tax	194		715		(22		)	221			—		—		(1,525		)	(273		)	(1,353		)	663
Total stockholders' equity	10,127		9,982		4,093			4,219			366		350		(2,040		)	(1,057		)	12,546			13,494
Total liabilities and equity	$	40,795	$	41,100	$	14,030		$	14,478		$	581	$	547	$	5,369		$	169,135		$	60,775		$	225,260

[1] Includes investments classified as part of Corporate that are not fixed maturities or short-term investments held by the HFSG holding company which are principally assets held by Hartford Life and Accident Insurance Company (HLA) that support reserves for retained run-off structured settlement and terminal funding agreement liabilities.  Fixed maturities, cash and short-term investments held by the HFSG holding company were $2.3 billion and $1.1 billion as of June 30, 2018 and December 31, 2017, respectively.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CAPITAL STRUCTURE

	Jun 30 2018			Mar 31 2018			Dec 31 2017			Sept 30 2017			Jun 30 2017			Mar 31 2017
DEBT
Short-term debt	$	413		$	413		$	320		$	320		$	320		$	320
Senior notes	3,173			3,172			3,096			3,093			3,092			3,091
Junior subordinated debentures	1,089			1,583			1,582			1,582			1,582			1,583
Total debt	$	4,675		$	5,168		$	4,998		$	4,995		$	4,994		$	4,994
STOCKHOLDERS’ EQUITY
Common stockholders' equity, excluding AOCI	$	13,899		$	13,382		$	12,831		$	16,648		$	16,794		$	17,216
AOCI	(1,353		)	(239		)	663			585			494			(207		)
Total stockholders’ equity	$	12,546		$	13,143		$	13,494		$	17,233		$	17,288		$	17,009
CAPITALIZATION
Total capitalization, including AOCI, after tax	$	17,221		$	18,311		$	18,492		$	22,228		$	22,282		$	22,003
Total capitalization, excluding AOCI, after tax	$	18,574		$	18,550		$	17,829		$	21,643		$	21,788		$	22,210
DEBT TO CAPITALIZATION RATIOS
Total debt to capitalization, including AOCI	27.1		%	28.2		%	27.0		%	22.5		%	22.4		%	22.7		%
Total debt to capitalization, excluding AOCI	25.2		%	27.9		%	28.0		%	23.1		%	22.9		%	22.5		%
Total rating agency adjusted debt to capitalization [1] [2]	29.7		%	29.9		%	28.8		%	24.3		%	25.2		%	25.0		%
FIXED CHARGE COVERAGE RATIOS
Total earnings to total fixed charges [3]	7.4:1			7.1:1			3.1:1			2.2:1			1.7:1			5.7:1

[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 a total adjustment of $1.0 billion and $1.4 billion for the three months ended June 30, 2018 and 2017, respectively.

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

[3] Calculated as year to date total earnings divided by year to date 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, 2018

	P&C			GROUP BENEFITS
U.S. statutory net income [1]	$	821		$	209
U.S. statutory capital [2]	$	8,051		$	2,216
U.S. GAAP adjustments:
DAC	600			53
Non-admitted deferred tax assets [3]	130			171
Deferred taxes [4]	(550		)	(393		)
Goodwill	112			723
Other Intangible Assets	71			587
Non-admitted assets other than deferred taxes	644			163
Asset valuation and interest maintenance reserve	—			258
Benefit reserves	(49		)	58
Unrealized gains on investments	286			(59		)
Other, net	832			316
U.S. GAAP stockholders’ equity	$	10,127		$	4,093

[1] Statutory net income is for the six months ended June 30, 2018.

[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 2018			Mar 31 2018			Dec 31 2017			Sept 30 2017			Jun 30 2017			Mar 31 2017
Fixed maturities net unrealized gain	$	211		$	1,349		$	1,837		$	1,774		$	1,696		$	1,355
Equities net unrealized gain	—			—			94			66			59			58
OTTI losses recognized in AOCI	(3		)	(5		)	(3		)	(4		)	(3		)	(4		)
Net gain on cash flow hedging instruments	(12		)	(24		)	18			43			57			58
Total net unrealized gain	$	196		$	1,320		$	1,946		$	1,879		$	1,809		$	1,467
Foreign currency translation adjustments	33			32			34			27			13			8
Pension and other postretirement adjustment	(1,582		)	(1,591		)	(1,317		)	(1,321		)	(1,328		)	(1,682		)
Total AOCI [1]	$	(1,353	)	$	(239	)	$	663		$	585		$	494		$	(207	)

[1] The reduction in AOCI from March 31, 2018 to June 30, 2018 included the effect of removing $758 of Talcott Resolution AOCI from the balance sheet when the business was sold effective May 31, 2018.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PROPERTY & CASUALTY

INCOME STATEMENTS

	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun 30 2018			Mar 31 2018			Dec 31 2017			Sept 30 2017			Jun 30 2017			Mar 31 2017			Jun 30 2018			Jun 30 2017
Written premiums	$	2,591		$	2,658		$	2,550		$	2,626		$	2,631		$	2,710		$	5,249		$	5,341
Change in unearned premium reserve	(10		)	88			(89		)	(18		)	(19		)	88			78			69
Earned premiums	2,601			2,570			2,639			2,644			2,650			2,622			5,171			5,272
Fee income	18			19			20			20			20			21			37			41
Losses and loss adjustment expenses
Current accident year before catastrophes	1,534			1,537			1,615			1,672			1,646			1,612			3,071			3,258
Current accident year catastrophes	188			103			179			352			155			150			291			305
Prior accident year development	(47		)	(32		)	(42		)	(1		)	(10		)	12			(79		)	2
Total losses and loss adjustment expenses	1,675			1,608			1,752			2,023			1,791			1,774			3,283			3,565
Amortization of DAC	329			328			328			329			331			330			657			661
Underwriting expenses	495			470			510			496			467			465			965			932
Amortization of other intangible assets	2			1			2			1			1			1			3			2
Dividends to policyholders	6			4			24			4			3			4			10			7
Underwriting gain (loss)*	112			178			43			(189		)	77			69			290			146
Net investment income	301			322			281			303			302			310			623			612
Net realized capital gains (losses)	50			(9		)	57			16			42			17			41			59
Net servicing and other income	3			5			6			9			4			5			8			9
Income before income taxes	466			496			387			139			425			401			962			826
Income tax expense	83			92			168			23			123			113			175			236
Net income	383			404			219			116			302			288			787			590
Less: Net realized capital gains (losses), excluded from core earnings, before tax	49			(8		)	56			16			41			17			41			58
Less: Income tax benefit (expense) [2]	(12		)	4			(77		)	(6		)	(15		)	(6		)	(8		)	(21		)
Core earnings	$	346		$	408		$	240		$	106		$	276		$	277		$	754		$	553
ROE
Net income [1]	12.7		%	11.9		%	10.7		%	5.0		%	7.5		%	4.5		%
Less: Net realized capital gains (losses), excluded from core earnings, before tax	1.4		%	1.4		%	1.7		%	0.3		%	0.1		%	—		%
Less: Loss on reinsurance transaction, before tax	—		%	—		%	—		%	(7.5		%)	(7.5		%)	(7.7		%)
Less: Income tax benefit (expense) [2]	(1.2		%)	(1.2		%)	(1.4		%)	2.5		%	3.1		%	3.2		%
Less: Impact of AOCI, excluded from core earnings ROE	(0.5		%)	(0.6		%)	(0.7		%)	(1.0		%)	(1.2		%)	(0.6		%)
Core earnings [1]	13.0		%	12.3		%	11.1		%	10.7		%	13.0		%	9.6		%

[1] Net income ROE and core earnings ROE for Property & Casualty assumes a portion of debt and interest expense accounted for within Corporate is allocated to Property & Casualty. For further information, see Appendix, page 33.

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

* 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 2018		Mar 31 2018		Dec 31 2017		Sept 30 2017		Jun 30 2017		Mar 31 2017	Jun 30 2018		Jun 30 2017
UNDERWRITING GAIN (LOSS)	112		178		43		(189	)	77		69	290		146
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes	59.0		59.8		61.2		63.2		62.1		61.5	59.4		61.8
Current accident year catastrophes	7.2		4.0		6.8		13.3		5.8		5.7	5.6		5.8
Prior accident year development [1]	(1.8	)	(1.2	)	(1.6	)	—		(0.4	)	0.5	(1.5	)	—
Total losses and loss adjustment expenses	64.4		62.6		66.4		76.5		67.6		67.7	63.5		67.6
Expenses	31.1		30.4		31.1		30.5		29.4		29.6	30.7		29.5
Policyholder dividends	0.2		0.2		0.9		0.2		0.1		0.2	0.2		0.1
Combined ratio	95.7		93.1		98.4		107.1		97.1		97.4	94.4		97.2
Current accident year catastrophes and prior accident year development	5.4		2.8		5.2		13.3		5.4		6.2	4.1		5.8
Underlying combined ratio *	90.3		90.3		93.2		93.9		91.6		91.2	90.3		91.4

[1] The following table summarizes unfavorable (favorable) prior accident year development.

	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun 30 2018			Mar 31 2018			Dec 31 2017			Sept 30 2017			Jun 30 2017			Mar 31 2017			Jun 30 2018			Jun 30 2017
Auto liability - Commercial Lines	$	(5	)	$	(5	)	$	(3	)	$	—		$	—		$	20		$	(10	)	$	20
Auto liability - Personal Lines	—			—			—			—			—			—			—			—
Homeowners	(1		)	(12		)	(14		)	—			—			—			(13		)	—
Professional and general liability	26			10			2			—			—			10			36			10
Package business	(15		)	8			(3		)	(22		)	—			—			(7		)	—
Bond	—			—			22			20			—			(10		)	—			(10		)
Commercial property	1			(13		)	(3		)	1			(7		)	1			(12		)	(6		)
Workers’ compensation	(48		)	(25		)	(50		)	(9		)	—			(20		)	(73		)	(20		)
Workers' compensation discount accretion	10			10			7			5			8			8			20			16
Catastrophes	(31		)	(3		)	(4		)	1			(10		)	(3		)	(34		)	(13		)
Uncollectible reinsurance	11			—			(15		)	—			—			—			11			—
Other reserve re-estimates	5			(2		)	19			3			(1		)	6			3			5
Total prior accident year development	$	(47	)	$	(32	)	$	(42	)	$	(1	)	$	(10	)	$	12		$	(79	)	$	2

* 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 2018			Mar 31 2018			Dec 31 2017			Sept 30 2017			Jun 30 2017			Mar 31 2017			Jun 30 2018			Jun 30 2017
Written premiums	$	1,734		$	1,851		$	1,727		$	1,702		$	1,706		$	1,821		$	3,585		$	3,527
Change in unearned premium reserve	(11		)	140			(7		)	(21		)	(14		)	133			129			119
Earned premiums	1,745			1,711			1,734			1,723			1,720			1,688			3,456			3,408
Fee income	8			9			9			9			9			10			17			19
Losses and loss adjustment expenses
Current accident year before catastrophes	977			971			990			1,009			994			968			1,948			1,962
Current accident year catastrophes	74			69			(21		)	270			63			71			143			134
Prior accident year development [1]	(73		)	(19		)	(34		)	(3		)	—			15			(92		)	15
Total losses and loss adjustment expenses	978			1,021			935			1,276			1,057			1,054			1,999			2,111
Amortization of DAC	259			257			255			253			252			249			516			501
Underwriting expenses	336			324			352			348			324			323			660			647
Amortization of other intangible assets	1			—			1			—			—			—			1			—
Dividends to policyholders	6			4			24			4			3			4			10			7
Underwriting gain (loss)	173			114			176			(149		)	93			68			287			161
Net servicing income (loss)	1			—			(1		)	1			1			—			1			1
Net investment income	242			258			225			241			240			243			500			483
Net realized capital gains (losses)	42			(8		)	47			13			32			11			34			43
Other income (expenses)	(3		)	2			1			(1		)	—			1			(1		)	1
Income before income taxes	455			366			448			105			366			323			821			689
Income tax expense	83			68			162			15			108			92			151			200
Net income	372			298			286			90			258			231			670			489
Less: Net realized capital gains (losses), excluded from core earnings, before tax	40			(6		)	45			12			32			11			34			43
Less: Income tax benefit (expense) [2]	(9		)	2			(41		)	(3		)	(12		)	(4		)	(7		)	(16		)
Core earnings	$	341		$	302		$	282		$	81		$	238		$	224		$	643		$	462

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

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

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 2018			Mar 31 2018			Dec 31 2017			Sept 30 2017			Jun 30 2017			Mar 31 2017			Jun 30 2018			Jun 30 2017
Auto liability	$	(5	)	$	(5	)	$	(3	)	$	—		$	—		$	20		$	(10	)	$	20
Professional liability	6			2			1			—			—			—			8			—
Package business	(15		)	8			(3		)	(22		)	—			—			(7		)	—
General liability	20			8			1			—			—			10			28			10
Bond	—			—			22			20			—			(10		)	—			(10		)
Commercial property	1			(13		)	(3		)	1			(7		)	1			(12		)	(6		)
Workers’ compensation	(48		)	(25		)	(50		)	(9		)	—			(20		)	(73		)	(20		)
Workers' compensation discount accretion	10			10			7			5			8			8			20			16
Catastrophes	(44		)	(8		)	1			1			(2		)	—			(52		)	(2		)
Uncollectible reinsurance	—			—			(15		)	—			—			—			—			—
Other reserve re-estimates	2			4			8			1			1			6			6			7
Total prior accident year development	$	(73	)	$	(19	)	$	(34	)	$	(3	)	$	—		$	15		$	(92	)	$	15

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

UNDERWRITING RATIOS

	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun 30 2018			Mar 31 2018			Dec 31 2017			Sept 30 2017			Jun 30 2017			Mar 31 2017			Jun 30 2018			Jun 30 2017
UNDERWRITING GAIN (LOSS)	$	173		$	114		$	176		$	(149	)	$	93		$	68		$	287		$	161
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes	56.0			56.8			57.1			58.6			57.8			57.3			56.4			57.6
Current accident year catastrophes	4.2			4.0			(1.2		)	15.7			3.7			4.2			4.1			3.9
Prior accident year development	(4.2		)	(1.1		)	(2.0		)	(0.2		)	—			0.9			(2.7		)	0.4
Total losses and loss adjustment expenses	56.0			59.7			53.9			74.1			61.5			62.4			57.8			61.9
Expenses	33.7			33.4			34.5			34.4			33.0			33.3			33.6			33.1
Policyholder dividends	0.3			0.2			1.4			0.2			0.2			0.2			0.3			0.2
Combined ratio	90.1			93.3			89.9			108.6			94.6			96.0			91.7			95.3
Current accident year catastrophes and prior accident year development	—			2.9			(3.2		)	15.5			3.7			5.1			1.4			4.3
Underlying combined ratio	90.0			90.4			93.0			93.2			90.9			90.9			90.2			90.9
COMBINED RATIOS BY LINE OF BUSINESS
SMALL COMMERCIAL
Combined ratio	86.6			89.0			83.9			101.5			90.4			91.7			87.8			91.0
Current accident year catastrophes	5.5			3.4			(1.2		)	15.9			3.2			4.7			4.4			4.0
Prior accident year development	(4.4		)	(1.8		)	(2.7		)	(3.5		)	—			(0.3		)	(3.1		)	(0.2		)
Underlying combined ratio	85.6			87.5			87.8			89.2			87.2			87.3			86.5			87.2
MIDDLE MARKET
Combined ratio	94.6			98.1			94.2			119.7			99.8			100.4			96.3			100.1
Current accident year catastrophes	3.7			6.6			(1.5		)	21.1			5.5			5.2			5.1			5.3
Prior accident year development	(3.2		)	(0.8		)	(3.2		)	1.5			(0.5		)	1.4			(2.0		)	0.5
Underlying combined ratio	94.1			92.2			98.9			97.0			94.9			93.8			93.2			94.3
SPECIALTY COMMERCIAL
Combined ratio	99.6			98.2			100.5			99.4			97.6			101.3			98.9			99.4
Current accident year catastrophes	0.1			—			—			—			0.2			—			—			0.1
Prior accident year development	1.0			0.7			0.9			0.8			1.5			3.9			0.8			2.7
Underlying combined ratio	98.5			97.5			99.6			98.6			95.9			97.5			98.0			96.7

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMMERCIAL LINES

SUPPLEMENTAL DATA

	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun 30 2018			Mar 31 2018			Dec 31 2017			Sept 30 2017			Jun 30 2017			Mar 31 2017			Jun 30 2018			Jun 30 2017
WRITTEN PREMIUMS
Small Commercial	$	928		$	996		$	882		$	905		$	936		$	986		$	1,924		$	1,922
Middle Market	586			616			628			584			566			592			1,202			1,158
Specialty Commercial	210			227			206			201			192			232			437			424
National Accounts	72			97			87			84			71			99			169			170
Financial Products	62			63			61			59			58			61			125			119
Bond	60			48			51			51			52			53			108			105
Other Specialty	16			19			7			7			11			19			35			30
Other	10			12			11			12			12			11			22			23
Total	$	1,734		$	1,851		$	1,727		$	1,702		$	1,706		$	1,821		$	3,585		$	3,527
EARNED PREMIUMS
Small Commercial	$	927		$	914		$	923		$	919		$	914		$	890		$	1,841		$	1,804
Middle Market	598			581			594			585			587			583			1,179			1,170
Specialty Commercial	209			204			206			208			207			203			413			410
National Accounts	82			84			85			84			85			86			166			171
Financial Products	60			59			60			62			60			60			119			120
Bond	54			50			51			51			51			47			104			98
Other Specialty	13			11			10			11			11			10			24			21
Other	11			12			11			11			12			12			23			24
Total	$	1,745		$	1,711		$	1,734		$	1,723		$	1,720		$	1,688		$	3,456		$	3,408
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
New Business Premium
Small Commercial	$	154		$	166		$	155		$	140		$	147		$	154		$	320		$	301
Middle Market	$	138		$	141		$	137		$	112		$	107		$	128		$	279		$	235
Renewal Price Increases [1]
Standard Commercial Lines - Written	3.1		%	2.4		%	2.7		%	3.5		%	3.4		%	3.2		%	2.8		%	3.3		%
Standard Commercial Lines - Earned	3.2		%	3.3		%	3.3		%	3.0		%	2.7		%	2.4		%	3.2		%	2.5		%
Policy Count Retention
Small Commercial	82		%	82		%	83		%	83		%	83		%	85		%	82		%	84		%
Middle Market	77		%	78		%	79		%	76		%	75		%	80		%	78		%	78		%
Policies in Force (in thousands)
Small Commercial	1,265			1,263			1,272			1,274			1,278			1,281
Middle Market	65			66			66			67			66			66

[1] Excludes Maxum, higher hazard general liability in middle market and livestock lines of business.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

INCOME STATEMENTS

	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun 30 2018			Mar 31 2018			Dec 31 2017			Sept 30 2017			Jun 30 2017			Mar 31 2017			Jun 30 2018			Jun 30 2017
Written premiums	$	857		$	807		$	823		$	924		$	925		$	889		$	1,664		$	1,814
Change in unearned premium reserve	1			(52		)	(82		)	3			(5		)	(45		)	(51		)	(50		)
Earned premiums	856			859			905			921			930			934			1,715			1,864
Fee income	10			10			11			11			11			11			20			22
Losses and loss adjustment expenses
Current accident year before catastrophes	557			566			625			663			652			644			1,123			1,296
Current accident year catastrophes	114			34			200			82			92			79			148			171
Prior accident year development [1]	10			(13		)	(25		)	2			(10		)	(4		)	(3		)	(14		)
Total losses and loss adjustment expenses	681			587			800			747			734			719			1,268			1,453
Amortization of DAC	70			71			73			76			79			81			141			160
Underwriting expenses	156			143			155			145			140			137			299			277
Amortization of other intangible assets	1			1			1			1			1			1			2			2
Underwriting gain (loss)	(42		)	67			(113		)	(37		)	(13		)	7			25			(6		)
Net servicing income	4			4			5			4			4			3			8			7
Net investment income	37			40			34			36			35			36			77			71
Net realized capital gains	5			—			6			2			5			2			5			7
Other income (expense)	1			(1		)	—			3			(1		)	(1		)	—			(2		)
Income (loss) before income taxes	5			110			(68		)	8			30			47			115			77
Income tax expense	(1		)	21			6			—			6			14			20			20
Net income (loss)	6			89			(74		)	8			24			33			95			57
Less: Net realized capital gains (losses), excluded from core earnings, before tax	6			(1		)	7			2			5			2			5			7
Less: Income tax benefit (expense) [2]	(2		)	1			(35		)	(1		)	(1		)	(1		)	(1		)	(2		)
Core earnings (losses)	$	2		$	89		$	(46	)	$	7		$	20		$	32		$	91		$	52

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

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

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 2018			Mar 31 2018			Dec 31 2017			Sept 30 2017		Jun 30 2017			Mar 31 2017			Jun 30 2018			Jun 30 2017
Auto liability	$	—		$	—		$	—		$	—	$	—		$	—		$	—		$	—
Homeowners	(1		)	(12		)	(14		)	—		—			—			(13		)	—
Catastrophes	13			5			(5		)	—		(8		)	(3		)	18			(11		)
Other reserve re-estimates, net	(2		)	(6		)	(6		)	2		(2		)	(1		)	(8		)	(3		)
Total prior accident year development	$	10		$	(13	)	$	(25	)	$	2	$	(10	)	$	(4	)	$	(3	)	$	(14	)

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

UNDERWRITING RATIOS

	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun 30 2018			Mar 31 2018			Dec 31 2017			Sept 30 2017			Jun 30 2017			Mar 31 2017			Jun 30 2018			Jun 30 2017
UNDERWRITING GAIN (LOSS)	$	(42	)	$	67		$	(113	)	$	(37	)	$	(13	)	$	7		$	25		$	(6	)
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes	65.1			65.9			69.1			72.0			70.1			69.0			65.5			69.5
Current accident year catastrophes	13.3			4.0			22.1			8.9			9.9			8.5			8.6			9.2
Prior accident year development	1.2			(1.5		)	(2.8		)	0.2			(1.1		)	(0.4		)	(0.2		)	(0.8		)
Total losses and loss adjustment expenses	79.6			68.3			88.4			81.1			78.9			77.0			73.9			78.0
Expenses	25.4			23.9			24.1			22.9			22.5			22.3			24.6			22.4
Combined ratio	104.9			92.2			112.5			104.0			101.4			99.3			98.5			100.3
Current accident year catastrophes and prior accident year development	14.5			2.5			19.3			9.1			8.8			8.1			8.4			8.4
Underlying combined ratio	90.4			89.8			93.1			94.9			92.6			91.2			90.1			91.9
PRODUCT
Automobile
Combined ratio	99.7			93.1			101.7			106.3			100.8			97.5			96.4			99.1
Current accident year catastrophes	3.4			0.5			0.7			4.8			2.3			1.4			1.9			1.8
Prior accident year development	(0.2		)	(1.6		)	(0.7		)	—			(0.6		)	(0.4		)	(0.9		)	(0.5		)
Underlying combined ratio	96.5			94.2			101.7			101.6			99.1			96.6			95.4			97.8
Homeowners
Combined ratio	117.8			89.8			137.4			97.9			103.4			103.4			103.8			103.4
Current accident year catastrophes	36.4			12.0			71.9			18.6			28.0			24.9			24.2			26.4
Prior accident year development	5.0			(1.1		)	(7.3		)	0.4			(2.1		)	(0.4		)	2.0			(1.2		)
Underlying combined ratio	76.4			78.9			72.8			78.9			77.6			78.9			77.7			78.2

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

SUPPLEMENTAL DATA

	THREE MONTHS ENDED												SIX MONTHS ENDED
	Jun 30 2018		Mar 31 2018		Dec 31 2017		Sept 30 2017		Jun 30 2017		Mar 31 2017		Jun 30 2018		Jun 30 2017
DISTRIBUTION
WRITTEN PREMIUMS
AARP Direct	$	704	$	654	$	644	$	735	$	729	$	687	$	1,358	$	1,416
AARP Agency	67		67		79		79		80		86		134		166
Other Agency	77		77		90		100		104		105		154		209
Other	9		9		10		10		12		11		18		23
Total	$	857	$	807	$	823	$	924	$	925	$	889	$	1,664	$	1,814
EARNED PREMIUMS
AARP Direct	$	684	$	681	$	709	$	713	$	711	$	708	$	1,365	$	1,419
AARP Agency	74		77		83		88		89		92		151		181
Other Agency	86		92		102		108		117		123		178		240
Other	12		9		11		12		13		11		21		24
Total	$	856	$	859	$	905	$	921	$	930	$	934	$	1,715	$	1,864
PRODUCT LINE
WRITTEN PREMIUMS
Automobile	$	586	$	581	$	578	$	636	$	638	$	645	$	1,167	$	1,283
Homeowners	271		226		245		288		287		244		497		531
Total	$	857	$	807	$	823	$	924	$	925	$	889	$	1,664	$	1,814
EARNED PREMIUMS
Automobile	$	596	$	600	$	634	$	644	$	652	$	654	$	1,196	$	1,306
Homeowners	260		259		271		277		278		280		519		558
Total	$	856	$	859	$	905	$	921	$	930	$	934	$	1,715	$	1,864

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

PERSONAL LINES

SUPPLEMENTAL DATA (CONTINUED)

	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun 30 2018			Mar 31 2018			Dec 31 2017			Sept 30 2017			Jun 30 2017			Mar 31 2017			Jun 30 2018			Jun 30 2017
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
New Business Premium
Automobile	$	42		$	37		$	35		$	37		$	38		$	42		$	79		$	80
Homeowners	$	11		$	9		$	9		$	11		$	12		$	12		$	20		$	24
Renewal Written Price Increases
Automobile	8.2		%	9.5		%	11.1		%	11.8		%	10.4		%	10.3		%	8.9		%	10.4		%
Homeowners	10.4		%	9.5		%	9.0		%	8.5		%	9.1		%	8.9		%	10.0		%	9.0		%
Renewal Earned Price Increases
Automobile	10.4		%	10.7		%	10.8		%	10.1		%	9.1		%	8.2		%	10.5		%	8.7		%
Homeowners	9.2		%	8.9		%	8.8		%	8.7		%	8.5		%	8.2		%	9.1		%	8.3		%
Policy Count Retention
Automobile	82		%	80		%	80		%	80		%	81		%	82		%	81		%	82		%
Homeowners	84		%	82		%	83		%	83		%	83		%	82		%	83		%	82		%
Premium Retention
Automobile	86		%	85		%	87		%	87		%	88		%	88		%	86		%	88		%
Homeowners	91		%	89		%	89		%	89		%	90		%	88		%	90		%	89		%
Policies in Force (in thousands)
Automobile	1,589			1,641			1,702			1,768			1,839			1,905
Homeowners	978			1,008			1,038			1,071			1,109			1,144

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

P&C OTHER OPERATIONS

INCOME STATEMENTS

	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun 30 2018			Mar 31 2018			Dec 31 2017			Sept 30 2017			Jun 30 2017			Mar 31 2017			Jun 30 2018			Jun 30 2017
Losses and loss adjustment expenses
Prior accident year development [1]	$	16		$	—		$	17		$	—		$	—		1			16			1
Total losses and loss adjustment expenses	16			—			17			—			—			1			16			1
Underwriting expenses	3			3			3			3			3			5			6			8
Underwriting gain (loss)	(19		)	(3		)	(20		)	(3		)	(3		)	(6		)	(22		)	(9		)
Net investment income	22			24			22			26			27			31			46			58
Net realized capital gains (losses)	3			(1		)	4			1			5			4			2			9
Other income	—			—			1			2			—			2			—			2
Income (loss) before income taxes	6			20			7			26			29			31			26			60
Income tax expense (benefit)	1			3			—			8			9			7			4			16
Net income (loss)	5			17			7			18			20			24			22			44
Less: Net realized capital gains (losses), excluded from core earnings, before tax	3			(1		)	4			2			4			4			2			8
Less: Income tax benefit (expense) [2]	(1		)	1			(1		)	(2		)	(2		)	(1		)	—			(3		)
Core earnings (losses)	$	3		$	17		$	4		$	18		$	18		$	21		$	20		$	39

[1] The three months ended June 30, 2018 included reserve increases for certain mass torts and the allowance for uncollectible reinsurance.

[2] Generally 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 2018			Mar 31 2018			Dec 31 2017			Sept 30 2017			Jun 30 2017			Mar 31 2017			Jun 30 2018			Jun 30 2017
Earned premiums	$	1,357		$	1,357		$	1,162		$	803		$	805		$	816		$	2,714		$	1,621
Fee income	44			44			34			19			19			19			88			38
Net investment income	115			121			103			95			88			95			236			183
Net realized capital gains (losses)	2			(25		)	4			9			13			8			(23		)	21
Total revenues	1,518			1,497			1,303			926			925			938			3,015			1,863
Benefits, losses and loss adjustment expenses	1,059			1,085			910			614			628			651			2,144			1,279
Amortization of DAC	11			10			9			8			8			8			21			16
Insurance operating costs and other expenses	317			321			298			204			193			220			638			413
Amortization of other intangible assets	16			17			9			—			—			—			33			—
Total benefits, losses and expenses	1,403			1,433			1,226			826			829			879			2,836			1,708
Income (loss) before income taxes	115			64			77			100			96			59			179			155
Income tax expense (benefit)	19			10			(32		)	29			27			14			29			41
Net income	96			54			109			71			69			45			150			114
Less: Net realized capital gains (losses), excluded from core earnings, before tax	—			(26		)	4			7			13			7			(26		)	20
Less: Integration and transaction costs associated with acquired business, before tax	(11		)	(12		)	(17		)	—			—			—			(23		)	—
Less: Income tax benefit (expense) [1]	3			7			55			(2		)	(5		)	(2		)	10			(7		)
Core earnings	$	104		$	85		$	67		$	66		$	61		$	40		$	189		$	101
Margin
Net income margin	6.3		%	3.6		%	8.4		%	7.7		%	7.5		%	4.9		%	5.0		%	6.2		%
Core earnings margin*	6.9		%	5.6		%	5.2		%	7.2		%	6.7		%	4.3		%	6.2		%	5.5		%
ROE
Net income [2]	11.9		%	10.9		%	10.5		%	11.6		%	11.0		%	10.7		%
Less: Net realized capital gains (losses), excluded from core earnings, before tax	(0.6		%)	(0.1		%)	1.2		%	1.7		%	2.2		%	2.4		%
Less: Integration costs	(1.6		%)	(1.2		%)	(0.7		%)	—		%	—		%	—		%
Less: Income tax benefit (expense) [1]	2.6		%	2.3		%	1.8		%	(0.6		%)	(0.8		%)	(0.9		%)
Less: Impact of AOCI, excluded from core earnings ROE	(0.4		%)	(0.4		%)	(0.4		%)	(1.5		%)	(1.5		%)	(1.0		%)
Core earnings [2]	11.9		%	10.3		%	8.6		%	12.0		%	11.1		%	10.2		%

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

[2] Net income ROE and core earnings ROE for Group Benefits assumes a portion of debt and interest expense accounted for within Corporate is allocated to Group Benefits. For further information, see Appendix, page 33.

* 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 2018			Mar 31 2018			Dec 31 2017			Sept 30 2017			Jun 30 2017			Mar 31 2017			Jun 30 2018			Jun 30 2017
PREMIUMS
Fully insured ongoing premiums
Group disability	$	642		$	633		$	539		$	368		$	360		$	364		$	1,275		$	724
Group life	651			664			567			382			391			386			1,315			777
Other	59			60			55			53			51			55			119			106
Total fully insured ongoing premiums	1,352			1,357			1,161			803			802			805			2,709			1,607
Total buyouts [1]	5			—			1			—			3			11			5			14
Total premiums	$	1,357		$	1,357		$	1,162		$	803		$	805		$	816		$	2,714		$	1,621
SALES (GROSS ANNUALIZED NEW PREMIUMS)
Fully insured ongoing sales
Group disability	$	47		$	260		$	77		$	43		$	32		$	87		$	307		$	119
Group life	34			160			22			20			33			115			194			148
Other	4			34			4			5			2			9			38			11
Total fully insured ongoing sales	85			454			103			68			67			211			539			278
Total buyouts [1]	5			—			1			—			3			11			5			14
Total sales	$	90		$	454		$	104		$	68		$	70		$	222		$	544		$	292
RATIOS, EXCLUDING BUYOUTS
Group disability loss ratio	74.3		%	74.9		%	72.9		%	73.0		%	78.9		%	82.9		%	74.6		%	80.9		%
Group life loss ratio	77.4		%	80.9		%	80.2		%	77.7		%	74.2		%	73.1		%	79.2		%	73.6		%
Total loss ratio	75.5		%	77.4		%	76.1		%	74.7		%	76.1		%	77.7		%	76.5		%	76.9		%
Expense ratio	23.9		%	24.0		%	25.0		%	25.8		%	24.5		%	27.7		%	23.9		%	26.1		%

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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

MUTUAL FUNDS

INCOME STATEMENTS

	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun 30 2018			Mar 31 2018			Dec 31 2017			Sept 30 2017			Jun 30 2017			Mar 31 2017			Jun 30 2018			Jun 30 2017
Investment management fees	$	182		$	181		$	179		$	172		$	162		$	155		$	363		$	317
Shareholder servicing fees	22			21			21			24			27			24			43			51
Other revenue	58			57			58			56			58			59			115			117
Net realized capital losses	(1		)	—			—			—			—			—			(1		)	—
Total revenues	261			259			258			252			247			238			520			485
Sub-advisory expense	66			66			65			63			60			56			132			116
Employee compensation and benefits	27			29			27			28			28			28			56			56
Distribution and service	91			91			91			90			90			89			182			179
General, administrative and other	31			30			19			31			31			30			61			61
Total expenses	215			216			202			212			209			203			431			412
Income before income taxes	46			43			56			40			38			35			89			73
Income tax expense	9			9			23			14			14			12			18			26
Net income	$	37		$	34		$	33		$	26		$	24		$	23		$	71		$	47
Less: Net realized capital losses, excluded from core earnings, before tax	(1		)	—			—			—			—			—			(1		)	—
Less: Income tax expense	—			—			(4		)	—			—			—			—			—
Core earnings	$	38		$	34		$	37		$	26		$	24		$	23		$	72		$	47
Daily average total Mutual Funds segment AUM	$117,070			$117,301			$113,830			$109,640			$105,625			$101,114			$	117,184		$	103,382
Return on assets (bps, after tax) [1]
Net income	12.6			11.9			11.5			9.5			9.2			9.2			12.2			9.2
Core earnings	12.8			11.9			12.8			9.5			9.2			9.2			12.4			9.2
ROE
Net income [2]	47.9		%	44.3		%	40.9		%	34.3		%	33.0		%	32.0		%
Less: Net realized capital losses excluded from core earnings, before tax	(0.4		%)	—		%	—		%	—		%	—		%	—		%
Less: Income tax expense	(1.5		%)	(1.6		%)	(1.6		%)	—		%	—		%	—		%
Less: Impact of AOCI, excluded from core earnings ROE	0.3		%	0.2		%	(0.1		%)	(0.3		%)	(0.3		%)	—		%
Core earnings [2]	49.5		%	45.7		%	42.6		%	34.6		%	33.3		%	32.0		%

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

[2] Net income ROE and core earnings ROE for Mutual Funds assumes a portion of debt and interest expense accounted for within Corporate is allocated to Mutual Funds. For further information, see Appendix, page 33.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

MUTUAL FUNDS

ASSET VALUE ROLLFORWARD

ASSETS UNDER MANAGEMENT BY ASSET CLASS

	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun 30 2018			Mar 31 2018			Dec 31 2017			Sept 30 2017			Jun 30 2017			Mar 31 2017			Jun 30 2018			Jun 30 2017
Equity Funds
Beginning balance	$	64,702		$	63,740		$	61,163		$	58,047		$	54,683		$	50,826		$	63,740		$	50,826
Sales	3,452			4,175			3,060			3,630			4,076			3,987			7,627			8,063
Redemptions	(3,116		)	(3,749		)	(3,276		)	(2,944		)	(3,269		)	(3,587		)	(6,865		)	(6,856		)
Net flows	336			426			(216		)	686			807			400			762			1,207
Change in market value and other	1,247			536			2,793			2,430			2,557			3,457			1,783			6,014
Ending balance	$	66,285		$	64,702		$	63,740		$	61,163		$	58,047		$	54,683		$	66,285		$	58,047
Fixed Income Funds
Beginning balance	$	14,378		$	14,401		$	14,454		$	14,286		$	13,973		$	13,301		$	14,401		$	13,301
Sales	1,119			1,002			771			866			1,079			1,930			2,121			3,009
Redemptions	(960		)	(1,030		)	(966		)	(861		)	(900		)	(1,406		)	(1,990		)	(2,306		)
Net flows	159			(28		)	(195		)	5			179			524			131			703
Change in market value and other	19			5			142			163			134			148			24			282
Ending balance	$	14,556		$	14,378		$	14,401		$	14,454		$	14,286		$	13,973		$	14,556		$	14,286
Multi-Strategy Investments Funds [1]
Beginning balance	$	20,137		$	20,469		$	19,571		$	18,923		$	18,142		$	17,171		$	20,469		$	17,171
Sales	681			1,000			993			868			1,093			1,301			1,681			2,394
Redemptions	(931		)	(914		)	(751		)	(792		)	(765		)	(892		)	(1,845		)	(1,657		)
Net flows	(250		)	86			242			76			328			409			(164		)	737
Change in market value and other	7			(418		)	656			572			453			562			(411		)	1,015
Ending balance	$	19,894		$	20,137		$	20,469		$	19,571		$	18,923		$	18,142		$	19,894		$	18,923
Exchange-traded Products ("ETP") AUM
Beginning balance	$	666		$	480		$	409		$	325		$	278		209			480			209
Net flows	228			194			42			60			33			22			422			55
Change in market value and other	36			(8		)	29			24			14			47			28			61
Ending balance	$	930		$	666		$	480		$	409		$	325		278			930			325
Mutual Fund and ETP AUM
Beginning balance	$	99,883		$	99,090		$	95,597		$	91,581		$	87,076		$	81,507		$	99,090		$	81,507
Sales - mutual fund	5,252			6,177			4,824			5,364			6,248			7,218			11,429			13,466
Redemptions - mutual fund	(5,007		)	(5,693		)	(4,993		)	(4,597		)	(4,934		)	(5,885		)	(10,700		)	(10,819		)
Net flows - ETP	228			194			42			60			33			22			422			55
Net flows - mutual fund and ETP	473			678			(127		)	827			1,347			1,355			1,151			2,702
Change in market value and other	1,309			115			3,620			3,189			3,158			4,214			1,424			7,372
Ending balance	101,665			99,883			99,090			95,597			91,581			87,076			101,665			91,581
Talcott Resolution life and annuity separate account AUM [2]	15,376			15,614			16,260			16,127			16,098			16,123			15,376			16,098
Total Mutual Funds segment AUM	$	117,041		$	115,497		$	115,350		$	111,724		$	107,679		$	103,199		$	117,041		$	107,679

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

[2] Represents AUM of the Talcott Resolution life and annuity business sold in May, 2018 that is still managed by the Company's Mutual Funds segment.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CORPORATE

INCOME STATEMENTS

	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun 30 2018			Mar 31 2018			Dec 31 2017			Sept 30 2017			Jun 30 2017			Mar 31 2017			Jun 30 2018			Jun 30 2017
Fee income [1]	$	4		$	2		$	2		$	1		$	—		$	1		$	6		$	1
Other revenue	2			—			—			—			—			—			2			—
Net investment income	11			7			9			5			5			4			18			9
Net realized capital gains (losses)	1			4			(1		)	1			—			(1		)	5			(1		)
Total revenues	18			13			10			7			5			4			31			9
Benefits, losses and loss adjustment expenses [2]	4			2			31			—			—			—			6			—
Insurance operating costs and other expenses	19			15			(1		)	26			16			18			34			34
Pension settlement [3]	—			—			—			—			750			—			—			750
Loss on extinguishment of debt	6			—			—			—			—			—			6			—
Interest expense	79			80			78			79			79			80			159			159
Total expenses	108			97			108			105			845			98			205			943
Loss from continuing operations before income taxes	(90		)	(84		)	(98		)	(98		)	(840		)	(94		)	(174		)	(934		)
Income tax expense (benefit) [4] [5]	(8		)	(20		)	821			(30		)	(293		)	(41		)	(28		)	(334		)
Loss from continuing operations, net of tax	(82		)	(64		)	(919		)	(68		)	(547		)	(53		)	(146		)	(600		)
Income (loss) from discontinued operations, net of tax [6]	148			169			(3,145		)	89			112			75			317			187
Net income (loss)	66			105			(4,064		)	21			(435		)	22			171			(413		)
Less: Net realized capital gains (losses), excluded from core earnings, before tax	2			4			(1		)	2			(1		)	(1		)	6			(2		)
Less: Loss on extinguishment of debt, before tax	(6		)	—			—			—			—			—			(6		)	—
Less: Pension settlement, before tax	—			—			—			—			(750		)	—			—			(750		)
Less: Income tax benefit (expense) [5] [7]	(2		)	(2		)	(867		)	(2		)	262			—			(4		)	262
Less: Income (loss) from discontinued operations, after tax [6]	148			169			(3,145		)	89			112			75			317			187
Core losses	$	(76	)	$	(66	)	$	(51	)	$	(68	)	$	(58	)	$	(52	)	$	(142	)	$	(110	)

[1] Beginning in June, 2018, includes fee income from managing invested assets of Talcott Resolution.

[2] Benefits incurred relates to life and annuity business retained by the Company.

[3] 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.

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

[5] The three months and year ended December 31, 2017 include $867 of income tax expense primarily from reducing net deferred tax assets due to the reduction in the corporate Federal income tax rate from 35% to 21%.

[6] The three months ended December 31, 2017 included an estimated loss on sale of $3.3 billion related to the sale of Talcott Resolution, the Company's life and annuity run-off business that was sold in May, 2018. The three months ended June 30, 2018 and March 31, 2018, included a reduction in loss on sale of $151 and $62, respectively. The reduction in loss on sale in the three months ended June 30, 2018 was primarily attributable to a $133 increase in estimated retained tax benefits, primarily retained net operating loss carryovers.

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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTMENT INCOME BEFORE TAX

CONSOLIDATED

	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun 30 2018			Mar 31 2018			Dec 31 2017			Sept 30 2017			Jun 30 2017			Mar 31 2017			Jun 30 2018			Jun 30 2017
Net Investment Income
Fixed maturities [1]
Taxable	$	252		$	238		$	226		$	224		$	224		$	221		$	490		$	445
Tax-exempt	106			111			105			103			102			98			217			200
Total fixed maturities	358			349			331			327			326			319			707			645
Equity securities	6			6			10			4			5			5			12			10
Mortgage loans	34			33			33			31			30			30			67			60
Limited partnerships and other alternative investments [2]	39			73			29			48			39			58			112			97
Other [3]	9			8			10			13			11			15			17			26
Subtotal	446			469			413			423			411			427			915			838
Investment expense	(18		)	(18		)	(19		)	(19		)	(16		)	(17		)	(36		)	(33		)
Total net investment income	$	428		$	451		$	394		$	404		$	395		$	410		$	879		$	805
Annualized investment yield, before tax [4]	3.9		%	4.2		%	3.8		%	4.1		%	4.1		%	4.2		%	4.1		%	4.2		%
Annualized limited partnerships and other alternative investment yield, before tax [4]	9.5		%	18.6		%	7.3		%	12.8		%	10.1		%	15.5		%	14.3		%	13.0		%
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4] *	3.7		%	3.7		%	3.7		%	3.8		%	3.8		%	3.8		%	3.7		%	3.8		%
Annualized investment yield, after tax [4]	3.3		%	3.5		%	2.8		%	3.0		%	3.0		%	3.1		%	3.4		%	3.1		%
Average reinvestment rate [5]	4.0		%	3.8		%	3.3		%	3.4		%	3.5		%	3.5		%	3.9		%	3.5		%
Average sales/maturities yield [6]	3.7		%	3.3		%	3.3		%	4.1		%	3.7		%	3.6		%	3.5		%	3.7		%
Portfolio duration (in years) [7]	4.9			5.1			5.2			5.0			5.0			5.1			4.9			5.0

[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 amortized cost 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.

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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTMENT INCOME BEFORE TAX

PROPERTY & CASUALTY

	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun 30 2018			Mar 31 2018			Dec 31 2017			Sept 30 2017			Jun 30 2017			Mar 31 2017			Jun 30 2018			Jun 30 2017
Net Investment Income
Fixed maturities [1]
Taxable	$	168		$	163		$	158		$	169		$	169		$	168		$	331		$	337
Tax-exempt	79			82			81			81			81			78			161			159
Total fixed maturities	247			245			239			250			250			246			492			496
Equity securities	5			4			4			4			4			4			9			8
Mortgage loans	23			24			24			22			21			21			47			42
Limited partnerships and other alternative investments [2]	33			58			23			34			32			45			91			77
Other [3]	6			4			6			7			8			8			10			16
Subtotal	314			335			296			317			315			324			649			639
Investment expense	(13		)	(13		)	(15		)	(14		)	(13		)	(14		)	(26		)	(27		)
Total net investment income	$	301		$	322		$	281		$	303		$	302		$	310		$	623		$	612
Annualized investment yield, before tax [4]	4.0		%	4.3		%	3.8		%	4.0		%	4.1		%	4.2		%	4.2		%	4.2		%
Annualized limited partnerships and other alternative investment yield, before tax [4]	9.3		%	17.0		%	6.5		%	10.4		%	9.6		%	13.6		%	13.4		%	11.8		%
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]	3.8		%	3.7		%	3.7		%	3.7		%	3.8		%	3.7		%	3.7		%	3.8		%
Annualized investment yield, after tax [4]	3.4		%	3.5		%	2.8		%	2.9		%	3.0		%	3.1		%	3.5		%	3.1		%
Average reinvestment rate [5]	4.0		%	3.7		%	3.2		%	3.4		%	3.5		%	3.7		%	3.9		%	3.6		%
Average sales/maturities yield [6]	3.9		%	3.7		%	3.6		%	4.1		%	3.8		%	3.8		%	3.8		%	3.8		%
Portfolio duration (in years) [7]	4.9			4.9			5.0			5.0			5.0			5.0			4.9			5.0

Footnotes [1] through [7] are explained on page 25.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTMENT INCOME BEFORE TAX

GROUP BENEFITS

	THREE MONTHS ENDED																		SIX MONTHS ENDED
	Jun 30 2018			Mar 31 2018			Dec 31 2017			Sept 30 2017			Jun 30 2017			Mar 31 2017			Jun 30 2018			Jun 30 2017
Net Investment Income
Fixed maturities [1]
Taxable	$	75		$	70		$	63		$	50		$	50		$	49		$	145		$	99
Tax-exempt	25			27			24			21			21			20			52			41
Total fixed maturities	100			97			87			71			71			69			197			140
Equity securities	—			1			1			—			—			—			1			—
Mortgage loans	11			9			9			9			9			10			20			19
Limited partnerships and other alternative investments [2]	6			15			6			14			7			13			21			20
Other [3]	3			4			4			5			4			6			7			10
Subtotal	120			126			107			99			91			98			246			189
Investment expense	(5		)	(5		)	(4		)	(4		)	(3		)	(3		)	(10		)	(6		)
Total net investment income	$	115		$	121		$	103		$	95		$	88		$	95		$	236		$	183
Annualized investment yield, before tax [4]	4.1		%	4.3		%	3.8		%	4.9		%	4.5		%	4.8		%	4.2		%	4.7		%
Annualized limited partnerships and other alternative investment yield, before tax [4]	10.6		%	28.3		%	12.2		%	29.4		%	13.3		%	28.9		%	19.7		%	21.7		%
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4] [8]	3.9		%	3.8		%	3.7		%	4.3		%	4.3		%	4.3		%	3.9		%	4.3		%
Annualized investment yield, after tax [4]	3.4		%	3.5		%	2.8		%	3.5		%	3.3		%	3.5		%	3.4		%	3.4		%
Average reinvestment rate [5]	4.2		%	3.9		%	3.4		%	3.6		%	3.6		%	3.6		%	4.1		%	3.6		%
Average sales/maturities yield [6]	3.8		%	3.0		%	2.9		%	4.3		%	3.9		%	4.0		%	3.2		%	4.0		%
Portfolio duration (in years) [7]	6.0			6.1			6.3			6.0			6.0			5.9			6.0			6.0

Footnotes [1] through [7] are explained on page 25.

[8] Beginning in the fourth quarter of 2017, the average yield reflects the fact that invested assets acquired as part of the acquisition of Aetna's group life and disability business on November 1, 2017 were recorded at the then current yields which are lower than the yields of the remainder of the Group Benefits segment invested assets.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NET INVESTMENT INCOME

CONSOLIDATED

	THREE MONTHS ENDED												SIX MONTHS ENDED
Net Investment Income by Segment	Jun 30 2018		Mar 31 2018		Dec 31 2017		Sept 30 2017		Jun 30 2017		Mar 31 2017		Jun 30 2018		Jun 30 2017
Net Investment Income
Commercial Lines	$	242	$	258	$	225	$	241	$	240	$	243	$	500	$	483
Personal Lines	37		40		34		36		35		36		77		71
P&C Other Operations	22		24		22		26		27		31		46		58
Total Property & Casualty	$	301	$	322	$	281	$	303	$	302	$	310	$	623	$	612
Group Benefits	115		121		103		95		88		95		236		183
Mutual Funds	1		1		1		1		—		1		2		1
Corporate	11		7		9		5		5		4		18		9
Total net investment income by segment	$	428	$	451	$	394	$	404	$	395	$	410	$	879	$	805
	THREE MONTHS ENDED												SIX MONTHS ENDED
Net Investment Income From Limited Partnerships and Other Alternative Investments	Jun 30 2018		Mar 31 2018		Dec 31 2017		Sept 30 2017		Jun 30 2017		Mar 31 2017		Jun 30 2018		Jun 30 2017
Total Property & Casualty	$	33	$	58	$	23	$	34	$	32	$	45	$	91	$	77
Group Benefits	6		15		6		14		7		13		21		20
Total net investment income from limited partnerships and other alternative investments [1]	$	39	$	73	$	29	$	48	$	39	$	58	$	112	$	97

[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 2018			Mar 31 2018			Dec 31 2017			Sept 30 2017			Jun 30 2017			Mar 31 2017			Jun 30 2018			Jun 30 2017
Net Realized Capital Gains (Losses)
Gross gains on sales	$	46		$	19		$	91		$	46		$	77		$	61		$	65		$	138
Gross losses on sales	(31		)	(57		)	(29		)	(16		)	(22		)	(46		)	(88		)	(68		)
Equity securities [1]	26			16			—			—			—			—			42			—
Net impairment losses	—			—			(4		)	(1		)	(2		)	(1		)	—			(3		)
Valuation allowances on mortgage loans	—			—			(1		)	—			—			—			—			—
Transactional foreign currency revaluation	—			1			—			—			8			6			1			14
Non-qualifying foreign currency derivatives	4			(3		)	—			—			(7		)	(7		)	1			(14		)
Other net gains (losses) [2] [3]	7			(6		)	3			(3		)	1			11			1			12
Total net realized capital gains (losses)	$	52		$	(30	)	$	60		$	26		$	55		$	24		$	22		$	79
Less: Net realized capital gains, included in core earnings, before tax	2			—			1			1			2			1			2			3
Total net realized capital gains (losses) excluded from core earnings, before tax	50			(30		)	59			25			53			23			20			76
Less: Impacts of tax	10			(5		)	22			10			20			8			5			28
Total net realized capital gains (losses) excluded from core earnings	$	40		$	(25	)	$	37		$	15		$	33		$	15		$	15		$	48

[1] Effective January 1, 2018, with adoption of new accounting guidance for equity securities at fair value, includes all changes in fair value and trading gains and losses for equity securities.

[2] Includes changes in value of non-qualifying derivatives, including credit derivatives and interest rate derivatives used to manage duration.

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

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

COMPOSITION OF INVESTED ASSETS

CONSOLIDATED

	Jun 30 2018				Mar 31 2018				Dec 31 2017				Sept 30 2017				Jun 30 2017
	Amount [1]		Percent		Amount		Percent		Amount		Percent		Amount		Percent		Amount [1]		Percent
Total investments	$	45,648	100.0	%	$	44,432	100.0	%	$	45,146	100.0	%	$	42,246	100.0	%	$	42,085	100.0	%
Asset-backed securities	$	994	2.7	%	$	911	2.5	%	$	1,126	3.0	%	$	1,350	4.0	%	$	1,339	4.0	%
Collateralized debt obligations	1,089		3.0	%	1,144		3.2	%	1,260		3.4	%	1,402		4.1	%	1,446		4.3	%
Commercial mortgage-backed securities	3,494		9.7	%	3,311		9.2	%	3,336		8.9	%	2,969		8.7	%	2,907		8.7	%
Corporate	13,349		36.9	%	12,634		35.2	%	12,804		34.7	%	11,372		33.4	%	11,265		33.4	%
Foreign government/government agencies	1,133		3.1	%	1,082		3.0	%	1,110		3.0	%	984		2.9	%	922		2.7	%
Municipal [2]	11,142		30.8	%	11,544		32.1	%	12,485		33.8	%	11,203		32.9	%	11,074		32.8	%
Residential mortgage-backed securities	3,207		8.9	%	3,086		8.6	%	3,044		8.3	%	2,590		7.7	%	2,577		7.6	%
U.S. Treasuries	1,786		4.9	%	2,212		6.2	%	1,799		4.9	%	2,156		6.3	%	2,190		6.5	%
Total fixed maturities, available-for-sale	$	36,194	100.0	%	$	35,924	100.0	%	$	36,964	100.0	%	$	34,026	100.0	%	$	33,720	100.0	%
U.S. government/government agencies	$	4,722	13.0	%	$	4,972	13.8	%	$	4,536	12.3	%	$	4,324	12.7	%	$	4,231	12.5	%
AAA	6,027		16.7	%	5,812		16.2	%	6,072		16.4	%	5,535		16.3	%	5,525		16.4	%
AA	7,096		19.6	%	6,942		19.3	%	7,810		21.1	%	7,211		21.2	%	7,355		21.8	%
A	8,846		24.4	%	8,873		24.7	%	8,919		24.1	%	7,906		23.2	%	7,610		22.6	%
BBB	8,157		22.5	%	7,839		21.8	%	7,931		21.5	%	7,350		21.6	%	7,172		21.2	%
BB	822		2.3	%	890		2.5	%	1,005		2.7	%	959		2.8	%	1,085		3.2	%
B	498		1.4	%	529		1.5	%	618		1.7	%	595		1.7	%	602		1.8	%
CCC	23		0.1	%	64		0.2	%	69		0.2	%	139		0.4	%	132		0.4	%
CC & below	3		—	%	3		—	%	4		—	%	7		0.1	%	8		0.1	%
Total fixed maturities, available-for-sale	$	36,194	100.0	%	$	35,924	100.0	%	$	36,964	100.0	%	$	34,026	100.0	%	$	33,720	100.0	%

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

[2] Primarily comprised of $8.2 billion in Property & Casualty and $2.8 billion in Group Benefits as of June 30, 2018.

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

INVESTED ASSET EXPOSURES

JUNE 30, 2018

	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	$	3,473	$	3,418	7.5	%
Utilities	2,121		2,111		4.6	%
Consumer non-cyclical	2,000		1,964		4.3	%
Technology and communications	1,766		1,762		3.9	%
Energy [1]	1,157		1,151		2.5	%
Capital goods	1,119		1,110		2.4	%
Consumer cyclical	1,038		1,029		2.2	%
Basic industry	644		644		1.4	%
Transportation	545		537		1.2	%
Other	633		626		1.4	%
Total	$	14,496	$	14,352	31.4	%
Top Ten Exposures by Issuer [2]
New York State Dormitory Authority	$	287	$	299	0.7	%
New York City Transitional Finance Authority	268		280		0.6	%
Commonwealth of Massachusetts	216		228		0.5	%
State of California	203		214		0.5	%
JP Morgan Chase & Co.	192		189		0.4	%
Massachusetts St. Development Finance Agency	179		185		0.4	%
New York City Municipal Water Finance Authority	173		184		0.4	%
State of Texas	164		172		0.4	%
Goldman Sachs Group Inc.	169		163		0.3	%
Apple Inc.	152		153		0.3	%
Total	$	2,003	$	2,067	4.5	%

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

[2] Excludes U.S. government and government agency securities, mortgage obligations issued by government sponsored agencies, cash equivalent securities, 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 five reporting segments: Commercial Lines, Personal Lines, Property & Casualty Other Operations ("P&C Other Operations"), Group Benefits, and Mutual Funds, as well as a Corporate category.

Property & Casualty ("P&C") businesses consist of three reporting segments: Commercial Lines, Personal Lines and P&C Other Operations. Commercial Lines provides 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. 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. On November 1, 2017, Hartford Life and Accident Insurance Company (HLA), a wholly owned subsidiary of the Company, completed the acquisition of Aetna's U.S. group life and disability insurance business through a reinsurance transaction. Aetna's group life and disability revenue and earnings since the acquisition date are included in the operating results of the Company's Group Benefits reporting segment.

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.

The Company includes in the Corporate category investment management fees and expenses related to managing third party business, including management of the invested assets of the Talcott Resolution life and annuity run-off business sold in the second quarter of 2018, discontinued operations related to the sale of Talcott Resolution, reserves for run-off structured settlement and terminal funding agreement liabilities, 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. In addition, Corporate includes investment earnings from a 9.7% ownership interest in the limited partnership that acquired Talcott Resolution.

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, redemptions, net flows, account value, policies in-force, premium retention, renewal earned and written price increases and policy count retention. Premium retention is defined as renewal premium written in the current period divided by total premium written in the prior period. Renewal earned price increases represent the portions of the prior and current period renewal written price increases that have been earned based on the period of time the underlying renewal policies have been in effect. 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 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 underlying 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, integration and transaction costs in connection with an acquired business, pension settlements, loss on extinguishment of debt, gains and losses on reinsurance transactions, income tax benefit from reduction in deferred income tax valuation allowance, impact of tax reform on net deferred tax assets, and results of discontinued operations. 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) 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. Results from discontinued operations are excluded from core earnings for businesses held for sale because such results could obscure trends in our ongoing businesses that are valuable to our investors' ability to assess the Company's financial performance. Net income (loss) and income from continuing operations (during periods when the Company reports significant discontinued operations) are the most directly comparable U.S. GAAP measures to core earnings. Income from continuing operations is net income, excluding the income (loss) from discontinued operations. Core earnings should not be considered as a substitute for net income (loss) or income (loss) from continuing operations and does not reflect the overall profitability of the Company’s business. Therefore, The Company believes that it is useful for investors to evaluate net income (loss), income (loss) from continuing operations 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 (loss) per share and income (loss) from continuing operations per share are the most directly comparable U.S. GAAP measures. Core earnings per share should not be considered as a substitute for net income (loss) per share or income (loss) from continuing operations per share and does not reflect the overall profitability of the Company's business. Therefore, the Company believes that it is useful for investors to evaluate net income (loss) per share, income (loss) from continuing operations per share and core earnings per share when reviewing our performance.

Book value per diluted share is a U.S. GAAP financial measure that represents a per share assessment of the value of a company's equity. It is calculated by dividing (a) common stockholders' equity by (b) common shares outstanding and dilutive potential common shares. The Company provides book value per diluted share to enable investors to assess the value of the Company’s equity. Reconciliations of book value per common share and book value per diluted share to book value per common share, excluding AOCI and book value per diluted share, excluding AOCI, are set forth on page 1.

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

	LAST TWELVE MONTHS ENDED
	Jun 30 2018		Mar 31 2018		Dec 31 2017		Sept 30 2017		Jun 30 2017		Mar 31 2017
Net income (loss) ROE	(15.4	%)	(19.3	%)	(20.6	%)	2.7	%	3.9	%	5.4	%
Less: Net realized capital gains (losses), excluded from core earnings, before tax	0.7	%	0.7	%	1.1	%	(0.2	%)	(0.2	%)	(0.3	%)
Less: Loss on reinsurance transactions, before tax	—	%	—	%	—	%	(3.6	%)	(3.6	%)	(3.7	%)
Less: Pension settlement, before tax	—	%	(5.0	%)	(4.9	%)	(4.2	%)	(4.2	%)	—	%
Less: Integration and transaction costs associated with an acquired business	(0.3	%)	(0.2	%)	(0.1	%)	—	%	—	%	—	%
Less: Income tax benefit (expense) on items not included in core earnings	(6.1	%)	(4.3	%)	(4.4	%)	3.2	%	3.5	%	2.4	%
Less: Income (loss) from discontinued operations, after tax	(18.4	%)	(18.4	%)	(18.9	%)	1.8	%	1.8	%	1.9	%
Less: Impact of AOCI, excluded from denominator of core earnings ROE	0.3	%	0.1	%	(0.1	%)	(0.2	%)	(0.3	%)	—	%
Core earnings ROE	8.4	%	7.8	%	6.7	%	5.9	%	6.9	%	5.1	%

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 (loss) for the Company's P&C businesses are set forth on pages 8, 10, 14 and 19.

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

Underlying combined ratio is a non-GAAP financial measure. Combined ratio is the most directly comparable GAAP measure. Underlying combined ratio represents the combined ratio before catastrophes and prior accident year development. The Company believes this ratio is an important measure of the trend in profitability since it removes the impact of volatile and unpredictable catastrophe losses and prior accident year loss and loss adjustment expense reserve development. A reconciliation of the combined ratio to the underlying combined ratio for Property & Casualty, Commercial Lines, and Personal Lines is set forth on pages 9, 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, and believes is an important measure of the Mutual Funds segment’s 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 the Mutual Funds segment 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 Mutual Funds business. Therefore, the Company believes it is important for investors to evaluate both ROA, core earnings, and ROA when reviewing the Mutual Funds segment performance. ROA, core earnings is calculated by dividing core earnings by a daily average AUM.

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. The company believes that net investment income, excluding limited partnerships, provides investors with an important measure of the trend in investment earnings because it excludes the impact of the volatility in returns related to limited partnerships and other alternative investments.

CONSOLIDATED

	THREE MONTHS ENDED												SIX MONTHS ENDED
	Jun 30 2018		Mar 31 2018		Dec 31 2017		Sept 30 2017		Jun 30 2017		Mar 31 2017		Jun 30 2018		Jun 30 2017
Total net investment income	$	428	$	451	$	394	$	404	$	395	$	410	$	879	$	805
Limited partnerships and other alternative investments ("Limited Partnerships")	39		73		29		48		39		58		112		97
Net investment income excluding limited partnerships	$	389	$	378	$	365	$	356	$	356	$	352	$	767	$	708

PROPERTY & CASUALTY

	THREE MONTHS ENDED												SIX MONTHS ENDED
	Jun 30 2018		Mar 31 2018		Dec 31 2017		Sept 30 2017		Jun 30 2017		Mar 31 2017		Jun 30 2018		Jun 30 2017
Total net investment income	$	301	$	322	$	281	$	303	$	302	$	310	$	623	$	612
Limited partnerships and other alternative investments	33		58		23		34		32		45		91		77
Net investment income excluding limited partnerships	$	268	$	264	$	258	$	269	$	270	$	265	$	532	$	535

GROUP BENEFITS

	THREE MONTHS ENDED												SIX MONTHS ENDED
	Jun 30 2018		Mar 31 2018		Dec 31 2017		Sept 30 2017		Jun 30 2017		Mar 31 2017		Jun 30 2018		Jun 30 2017
Total net investment income	$	115	$	121	$	103	$	95	$	88	$	95	$	236	$	183
Limited partnerships and other alternative investments	6		15		6		14		7		13		21		20
Net investment income excluding limited partnerships	$	109	$	106	$	97	$	81	$	81	$	82	$	215	$	163

Annualized investment yield, excluding limited partnerships is 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 partnership and other alternative invested assets. The company believes that annualized net investment income, excluding limited partnerships, provides investors with an important measure of the trend in investment earnings because it excludes the impact of the volatility in returns related to limited partnerships and other alternative investments.

CONSOLIDATED

	THREE MONTHS ENDED												SIX MONTHS ENDED
	Jun 30 2018		Mar 31 2018		Dec 31 2017		Sept 30 2017		Jun 30 2017		Mar 31 2017		Jun 30 2018		Jun 30 2017
Annualized investment yield	3.9	%	4.2	%	3.8	%	4.1	%	4.1	%	4.2	%	4.1	%	4.2	%
Annualized investment yield on limited partnerships and other alternative investments	9.5	%	18.6	%	7.3	%	12.8	%	10.1	%	15.5	%	14.3	%	13.0	%
Annualized investment yield excluding limited partnerships and other alternative investments	3.7	%	3.7	%	3.7	%	3.8	%	3.8	%	3.8	%	3.7	%	3.8	%

PROPERTY & CASUALTY

	THREE MONTHS ENDED												SIX MONTHS ENDED
	Jun 30 2018		Mar 31 2018		Dec 31 2017		Sept 30 2017		Jun 30 2017		Mar 31 2017		Jun 30 2018		Jun 30 2017
Annualized investment yield	4.0	%	4.3	%	3.8	%	4.0	%	4.1	%	4.2	%	4.2	%	4.2	%
Annualized investment yield on limited partnerships and other alternative investments	9.3	%	17.0	%	6.5	%	10.4	%	9.6	%	13.6	%	13.4	%	11.8	%
Annualized investment yield excluding limited partnerships and other alternative investments	3.8	%	3.7	%	3.7	%	3.7	%	3.8	%	3.7	%	3.7	%	3.8	%

GROUP BENEFITS

	THREE MONTHS ENDED												SIX MONTHS ENDED
	Jun 30 2018		Mar 31 2018		Dec 31 2017		Sept 30 2017		Jun 30 2017		Mar 31 2017		Jun 30 2018		Jun 30 2017
Annualized investment yield	4.1	%	4.3	%	3.8	%	4.9	%	4.5	%	4.8	%	4.2	%	4.7	%
Annualized investment yield on limited partnerships and other alternative investments	10.6	%	28.3	%	12.2	%	29.4	%	13.3	%	28.9	%	19.7	%	21.7	%
Annualized investment yield excluding limited partnerships and other alternative investments	3.9	%	3.8	%	3.7	%	4.3	%	4.3	%	4.3	%	3.9	%	4.3	%