10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________ 

FORM 10-Q

 ____________________________________

(Mark One)

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2018

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ______________

Commission file number 001-13958

____________________________________ 

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

(Exact name of registrant as specified in its charter)

Delaware	13-3317783
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

One Hartford Plaza, Hartford, Connecticut 06155

(Address of principal executive offices) (Zip Code)

(860) 547-5000

(Registrant’s telephone number, including area code)

Indicate by check mark:	Yes	No
•     whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.	ý	¨
•     whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).	ý	¨
•     whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer x Accelerated filer  ¨ Non-accelerated filer  ¨ Smaller reporting company  ¨ 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.  ¨

•     whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ¨ ý

As of October 23, 2018, there were outstanding 358,734,819 shares of Common Stock, $0.01 par value per share, of the registrant.

1

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

QUARTERLY REPORT ON FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2018

TABLE OF CONTENTS

Item	Description	Page
	Part I
1.	FINANCIAL STATEMENTS
	REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	5
	CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2018 AND 2017	6
	CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2018 AND 2017	7
	CONDENSED CONSOLIDATED BALANCE SHEETS - AS OF SEPTEMBER 30, 2018 AND DECEMBER 31, 2017	8
	CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018 AND 2017	9
	CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018 AND 2017	10
	NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	11
2.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	62
3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	[a]
4.	CONTROLS AND PROCEDURES	113
	PART II. OTHER INFORMATION
1.	LEGAL PROCEEDINGS	114
1A.	RISK FACTORS	115
2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	116
6.	EXHIBITS	117
	EXHIBITS INDEX	118
	SIGNATURE	119

[a]The information required by this item is set forth in the Enterprise Risk Management section of Item 2, Management's Discussion and Analysis of Financial Condition and Results of Operations and is incorporated herein by reference.

2

Forward-Looking Statements

Certain of the statements contained herein are forward-looking statements made pursuant to the safe harbor provisions of 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 future periods.

Forward-looking statements are based on management's current expectations and assumptions regarding future economic, competitive, legislative and other developments and their potential effect upon The Hartford Financial Services Group, Inc. and its subsidiaries (collectively, the "Company" or "The Hartford"). Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual results could differ materially from expectations, depending on the evolution of various factors, including the risks and uncertainties identified below, as well as factors described in such forward-looking statements; Part II, Item 1A, Risk Factors of this Quarterly Report on Form 10-Q; Part II, Item 1A, Risk Factors in The Hartford's Quarterly Report on Form 10-Q for the quarter ended June 30, 2018; Part I, Item 1A, Risk Factors in The Hartford’s 2017 Form 10-K Annual Report; and our other filings with the Securities and Exchange Commission ("SEC").

• Risks Related 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;

◦ technology changes, such as usage-based methods of determining premiums, advancement in automotive safety features, the development of autonomous vehicles, and platforms that facilitate ride sharing, which may alter demand for the Company's products, impact the frequency or severity of losses, and/or impact the way the Company markets, distributes and underwrites its products;

◦ the Company’s ability to market, distribute and provide insurance products and investment advisory services through current and future distribution channels and advisory firms;

◦ the uncertain effects of emerging claim and coverage issues;

• Financial Strength, Credit and Counterparty Risks:

◦ risks to our business, financial position, prospects and results associated with negative rating actions or downgrades in the Company’s financial strength and credit ratings or negative rating actions or downgrades relating to our investments;

◦ the impact on our 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;

◦ 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 the Company against losses;

◦ regulatory limitations on the ability of the Company and certain of its subsidiaries to declare and pay dividends;

3

• Risks Relating to Estimates, Assumptions and Valuations;

◦ risk associated with the use of analytical models in making decisions in key areas such as underwriting, capital management, hedging, reserving, and catastrophe risk management;

◦ the potential for differing interpretations of the methodologies, estimations and assumptions that underlie the Company’s fair value estimates for its investments and the evaluation of other-than-temporary impairments on available-for-sale securities;

◦ the potential for further impairments of our goodwill or the potential for changes in valuation allowances against deferred tax assets;

◦ the significant uncertainties that limit our ability to estimate the ultimate reserves necessary for asbestos and environmental claims;

• Strategic and Operational Risks:

◦ 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;

◦ failure to complete our proposed acquisition of The Navigators Group, Inc. may cause volatility in our securities;

◦ the risks, challenges and uncertainties associated with our capital management plan, expense reduction initiatives and other actions, which may include acquisitions, divestitures or restructurings;

◦ the potential for difficulties arising from outsourcing and similar third-party relationships;

◦ the Company’s ability to protect its intellectual property and defend against claims of infringement;

• Regulatory and Legal Risks:

◦ the cost and other potential effects of increased regulatory and legislative developments, including those that could adversely impact the demand for the Company’s products, operating costs and required capital levels;

◦ unfavorable judicial or legislative developments;

◦ the impact of changes in federal or state tax laws;

◦ regulatory requirements that could delay, deter or prevent a takeover attempt that shareholders might consider in their best interests;

◦ the impact of potential changes in accounting principles and related financial reporting requirements.

Any forward-looking statement made by the Company in this document speaks only as of the date of the filing of this Form 10-Q. Factors or events that could cause the Company’s actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise.

4

Part I - Item 1. Financial Statements

Item 1. Financial Statements

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of

The Hartford Financial Services Group, Inc.

Hartford, Connecticut

Results of Review of Interim Financial Information

We have reviewed the accompanying condensed consolidated balance sheet of The Hartford Financial Services Group, Inc. and subsidiaries (the "Company") as of September 30, 2018, the related condensed consolidated statements of operations and comprehensive income (loss) for the three-month and nine-month periods ended September 30, 2018 and 2017, and the condensed consolidated statements of changes in stockholders’ equity and cash flows for the nine-month periods ended September 30, 2018 and 2017, and the related notes (collectively referred to as the "interim financial information"). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of December 31, 2017, and the related consolidated statements of operations, comprehensive income, changes in stockholders' equity, and cash flows for the year then ended (not presented herein); and in our report dated February 23, 2018, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, 2017, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Basis for Review Results

This interim financial information is the responsibility of the Company's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our reviews in accordance with standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ DELOITTE & TOUCHE LLP

Hartford, Connecticut

October 25, 2018

5

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

Condensed Consolidated Statements of Operations

	Three Months Ended September 30,						Nine Months Ended September 30,
(In millions, except for per share data)	2018			2017			2018			2017
	(Unaudited)
Revenues
Earned premiums	$	3,987		$	3,447		$	11,872		$	10,340
Fee income	344			291			994			855
Net investment income	444			404			1,323			1,209
Net realized capital gains (losses):
Total other-than-temporary impairment ("OTTI") losses	(4		)	(4		)	(6		)	(11		)
OTTI losses recognized in other comprehensive income (“OCI”)	3			3			5			7
Net OTTI losses recognized in earnings	(1		)	(1		)	(1		)	(4		)
Other net realized capital gains	39			27			61			109
Total net realized capital gains	38			26			60			105
Other revenues	29			24			73			66
Total revenues	4,842			4,192			14,322			12,575
Benefits, losses and expenses
Benefits, losses and loss adjustment expenses	2,786			2,638			8,219			7,482
Amortization of deferred policy acquisition costs ("DAC")	348			341			1,034			1,030
Insurance operating costs and other expenses	1,091			952			3,195			3,521
Loss on extinguishment of debt	—			—			6			—
Interest expense	69			79			228			238
Amortization of other intangible assets	18			1			54			3
Total benefits, losses and expenses	4,312			4,011			12,736			12,274
Income from continuing operations before income taxes	530			181			1,586			301
Income tax expense	103			36			297			5
Income from continuing operations, net of tax	427			145			1,289			296
Income from discontinued operations, net of tax	5			89			322			276
Net income	$	432		$	234		$	1,611		$	572
Income from continuing operations, net of tax, per common share
Basic	$	1.19		$	0.40		$	3.60		$	0.81
Diluted	$	1.17		$	0.40		$	3.54		$	0.79
Net income per common share
Basic	$	1.20		$	0.65		$	4.50		$	1.56
Diluted	$	1.19		$	0.64		$	4.42		$	1.54
Cash dividends declared per common share	$	0.30		$	0.23		$	0.80		$	0.69

See Notes to Condensed Consolidated Financial Statements.

6

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

Condensed Consolidated Statements of Comprehensive Income (Loss)

	Three Months Ended September 30,						Nine Months Ended September 30,
(In millions)	2018			2017			2018			2017
	(Unaudited)
Net income	$	432		$	234		$	1,611		$	572
Other comprehensive income (loss):
Changes in net unrealized gain on securities	(171		)	85			(2,164		)	564
Changes in OTTI losses recognized in other comprehensive income	(1		)	(1		)	(1		)	(1		)
Changes in net gain on cash flow hedging instruments	(5		)	(14		)	(37		)	(33		)
Changes in foreign currency translation adjustments	1			14			(4		)	21
Changes in pension and other postretirement plan adjustments	10			7			29			371
OCI, net of tax	(166		)	91			(2,177		)	922
Comprehensive income (loss)	$	266		$	325		$	(566	)	$	1,494

See Notes to Condensed Consolidated Financial Statements.

7

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

Condensed Consolidated Balance Sheets

(In millions, except for share and per share data)	September 30, 2018			December 31, 2017
	(Unaudited)
Assets
Investments:
Fixed maturities, available-for-sale, at fair value (amortized cost of $36,094 and $35,612)	$	36,166		$	36,964
Fixed maturities, at fair value using the fair value option	24			41
Equity securities, at fair value	1,035			—
Equity securities, available-for-sale, at fair value (cost of $0 and $907)	—			1,012
Mortgage loans (net of allowances for loan losses of $1 and $1)	3,559			3,175
Limited partnerships and other alternative investments	1,712			1,588
Other investments	98			96
Short-term investments	3,540			2,270
Total investments	46,134			45,146
Cash	102			180
Premiums receivable and agents’ balances, net	4,025			3,910
Reinsurance recoverables, net	3,931			4,061
Deferred policy acquisition costs	670			650
Deferred income taxes, net	1,244			1,164
Goodwill	1,290			1,290
Property and equipment, net	997			1,034
Other intangible assets, net	651			659
Other assets	2,393			2,230
Assets held for sale	—			164,936
Total assets	$	61,437		$	225,260
Liabilities
Unpaid losses and loss adjustment expenses	$	32,297		$	32,287
Reserve for future policy benefits	656			713
Other policyholder funds and benefits payable	775			816
Unearned premiums	5,388			5,322
Short-term debt	413			320
Long-term debt	4,263			4,678
Other liabilities	4,916			5,188
Liabilities held for sale	—			162,442
Total liabilities	$	48,708		$	211,766
Commitments and Contingencies (Note 13)
Stockholders’ Equity
Common stock, $0.01 par value — 1,500,000,000 shares authorized, 384,923,222 shares issued at September 30, 2018 and December 31, 2017	$	4		$	4
Additional paid-in capital	4,385			4,379
Retained earnings	10,973			9,642
Treasury stock, at cost — 26,247,219 and 28,088,186 shares	(1,114		)	(1,194		)
Accumulated other comprehensive income (loss), net of tax	(1,519		)	663
Total stockholders’ equity	$	12,729		$	13,494
Total liabilities and stockholders’ equity	$	61,437		$	225,260

See Notes to Condensed Consolidated Financial Statements.

8

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

Condensed Consolidated Statements of Changes in Stockholders' Equity

	Nine Months Ended September 30,
(In millions, except for share data)	2018			2017
	(Unaudited)
Common Stock	$	4		$	4
Additional Paid-in Capital
Additional Paid-in Capital, beginning of period	4,379			5,247
Issuance of shares under incentive and stock compensation plans	(92		)	(68		)
Stock-based compensation plans expense	105			77
Issuance of shares for warrant exercise	(7		)	(65		)
Additional Paid-in Capital, end of period	4,385			5,191
Retained Earnings
Retained Earnings, beginning of period	9,642			13,114
Cumulative effect of accounting changes, net of tax	5			—
Adjusted balance, beginning of period	9,647			13,114
Net income	1,611			572
Dividends declared on common stock	(285		)	(252		)
Retained Earnings, end of period	10,973			13,434
Treasury Stock, at cost
Treasury Stock, at cost, beginning of period	(1,194		)	(1,125		)
Treasury stock acquired	—			(975		)
Issuance of shares under incentive and stock compensation plans	109			90
Net shares acquired related to employee incentive and stock compensation plans	(36		)	(36		)
Issuance of shares for warrant exercise	7			65
Treasury Stock, at cost, end of period	(1,114		)	(1,981		)
Accumulated Other Comprehensive Income (Loss), net of tax
Accumulated Other Comprehensive Income (Loss), net of tax, beginning of period	663			(337		)
Cumulative effect of accounting changes, net of tax	(5		)	—
Adjusted balance, beginning of period	658			(337		)
Total other comprehensive income (loss)	(2,177		)	922
Accumulated Other Comprehensive Income (Loss), net of tax, end of period	(1,519		)	585
Total Stockholders’ Equity	$	12,729		$	17,233
Common Shares Outstanding
Common Shares Outstanding, beginning of period (in thousands)	356,835			373,949
Treasury stock acquired	—			(19,281		)
Issuance of shares under incentive and stock compensation plans	2,373			2,078
Return of shares under incentive and stock compensation plans to treasury stock	(694		)	(718		)
Issuance of shares for warrant exercise	162			1,512
Common Shares Outstanding, at end of period	358,676			357,540

See Notes to Condensed Consolidated Financial Statements.

9

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

Condensed Consolidated Statements of Cash Flows

	Nine Months Ended September 30,
(In millions)	2018			2017
Operating Activities	(Unaudited)
Net income	$	1,611		$	572
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized capital gains	(7		)	(52		)
Amortization of deferred policy acquisition costs	1,092			1,088
Additions to deferred policy acquisition costs	(1,057		)	(1,039		)
Depreciation and amortization	359			300
Loss on extinguishment of debt	6			—
Gain on sale	(202		)	—
Pension settlement	—			747
Other operating activities, net	346			328
Change in assets and liabilities:
Decrease in reinsurance recoverables	111			43
Decrease (increase) in accrued and deferred income taxes	(74		)	64
Increase (decrease) in unpaid losses and loss adjustment expenses, reserve for future policy benefits, and unearned premiums	(119		)	845
Net change in other assets and other liabilities	(224		)	(1,372		)
Net cash provided by operating activities	1,842			1,524
Investing Activities
Proceeds from the sale/maturity/prepayment of:
Fixed maturities, available-for-sale	20,069			21,371
Fixed maturities, fair value option	21			140
Equity securities, at fair value	1,171			—
Equity securities, available-for-sale	—			599
Mortgage loans	314			558
Partnerships	377			190
Proceeds from repurchase agreements program	(11		)	—
Payments for the purchase of:
Fixed maturities, available-for-sale	(18,679		)	(22,021		)
Equity securities, at fair value	(1,084		)	—
Equity securities, available-for-sale	—			(517		)
Mortgage loans	(667		)	(943		)
Partnerships	(408		)	(344		)
Repayments of repurchase agreements program	42			—
Net payments for derivatives	(228		)	(98		)
Net additions of property and equipment	(70		)	(129		)
Net payments for short-term investments	(2,720		)	(523		)
Other investing activities, net	(4		)	10
Proceeds from business sold, net of cash transferred	1,115			222
Net cash used for investing activities	(762		)	(1,485		)
Financing Activities
Deposits and other additions to investment and universal life-type contracts	1,814			3,628
Withdrawals and other deductions from investment and universal life-type contracts	(9,210		)	(10,623		)
Net transfers from separate accounts related to investment and universal life-type contracts	6,949			6,080
Repayments at maturity or settlement of consumer notes	(2		)	(12		)
Net increase (decrease) in securities loaned or sold under agreements to repurchase	(646		)	1,434
Repayment of debt	(826		)	(416		)
Proceeds from the issuance of debt	490			500
Net issuance (return) of shares under incentive and stock compensation plans	10			(16		)
Treasury stock acquired	—			(975		)
Dividends paid on common stock	(270		)	(258		)
Net cash used for financing activities	(1,691		)	(658		)
Foreign exchange rate effect on cash	(4		)	70
Net decrease in cash, including cash classified as assets held for sale	(615		)	(549		)
Less: Net decrease in cash classified as assets held for sale	(537		)	(315		)
Net (decrease) in cash	(78		)	(234		)
Cash – beginning of period	180			328
Cash – end of period	$	102		$	94
Supplemental Disclosure of Cash Flow Information
Income tax received (paid)	$	(1	)	$	3
Interest paid	$	197		$	205

See Notes to Condensed Consolidated Financial Statements

10

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollar amounts in millions, except for per share data, unless otherwise stated)

1. Basis of Presentation and Significant Accounting Policies

Basis of Presentation

The Hartford Financial Services Group, Inc. is a holding company for insurance and financial services subsidiaries that provide property and casualty insurance, group life and disability products and mutual funds and exchange-traded products to individual and business customers in the United States (collectively, “The Hartford”, the “Company”, “we” or “our”).

On August 22, 2018, the Company announced it entered into a definitive agreement to acquire all outstanding common shares of The Navigators Group, Inc. ("Navigators Group"), a global specialty underwriter, for $70 a share, or $2.1 billion in cash. The transaction is expected to close in the first half of 2019, subject to approval by Navigators Group's shareholders and other customary closing conditions, including receipt of regulatory approvals.

On May 31, 2018, Hartford Holdings, Inc., a wholly owned subsidiary of the Company, completed the sale of the issued and outstanding equity of Hartford Life, Inc. (“HLI”), a holding company for its life and annuity operating subsidiaries. For further discussion of this transaction, see Note 18 - Business Dispositions and Discontinued Operations of Notes to Condensed Consolidated Financial Statements.

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 business through a reinsurance transaction. For further discussion of this transaction, see Note 2 - Business Acquisitions of Notes to Condensed Consolidated Financial Statements.

On May 10, 2017, the Company completed the sale of its United Kingdom ("U.K.") property and casualty run-off subsidiaries.

The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, which differ materially from the accounting practices prescribed by various insurance regulatory authorities. These Condensed Consolidated Financial Statements and Notes should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company's 2017 Form 10-K Annual Report. The results of operations for interim periods are not necessarily indicative of the results that may be expected for the full year.

The accompanying Condensed Consolidated Financial Statements and Notes are unaudited. These financial statements reflect all adjustments (generally consisting only of normal accruals) which are, in the opinion of management, necessary for the fair presentation of the financial position, results of operations and cash flows for the interim periods. The Company's significant accounting policies are summarized in Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements included in the Company's 2017 Form 10-K Annual Report.

Consolidation

The Condensed Consolidated Financial Statements include the

accounts of The Hartford Financial Services Group, Inc., and entities in which the Company directly or indirectly has a controlling financial interest. Entities in which the Company has significant influence over the operating and financing decisions but does not control are reported using the equity method. All intercompany transactions and balances between The Hartford and its subsidiaries and affiliates that are not held for sale have been eliminated.

Discontinued Operations

The results of operations of a component of the Company are reported in discontinued operations when certain criteria are met as of the date of disposal, or earlier if classified as held-for-sale. When a component is identified for discontinued operations reporting, amounts for prior periods are retrospectively reclassified as discontinued operations. Components are identified as discontinued operations if they are a major part of an entity's operations and financial results such as a separate major line of business or a separate major geographical area of operations.

Use of Estimates

The preparation of financial statements, in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The most significant estimates include those used in determining property and casualty and group long-term disability insurance product reserves, net of reinsurance; evaluation of goodwill for impairment; valuation of investments and derivative instruments; valuation allowance on deferred tax assets; and contingencies relating to corporate litigation and regulatory matters.

Reclassifications

Certain reclassifications have been made to prior year financial information to conform to the current year presentation. In particular:

• Distribution costs within the Mutual Funds segment that were previously netted against fee income are presented gross in insurance operating costs and other expenses.

Adoption of New Accounting Standards

Reclassification of Effect of Tax Rate Change from AOCI to Retained Earnings

On January 1, 2018, the Company adopted the FASB's new guidance for the effect on deferred tax assets and liabilities related to items recorded in accumulated other comprehensive income ("AOCI") resulting from the Tax Cuts and Jobs Act of 2017

11

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

1. Basis of Presentation and Significant Accounting Policies (continued)

("Tax Reform") enacted on December 22, 2017. Tax Reform reduced the federal tax rate applied to the Company’s deferred tax balances from 35% to 21% on enactment. Under U.S. GAAP, the Company recorded the total effect of the change in enacted tax rates on deferred tax balances as a charge to income tax expense within net income during the fourth quarter of 2017, including the change in deferred tax balances related to components of AOCI. The new accounting guidance permitted the Company to reclassify the “stranded” tax effects out of AOCI and into retained earnings that resulted from recording the tax effects of unrealized investment gains, unrecognized actuarial losses on pension and other postretirement benefit plans, and cumulative translation adjustments at a 35% tax rate because the 14 point reduction in tax rate was recognized in net income instead of other comprehensive income. On adoption, the Company recorded a reclassification of $88 from AOCI to retained earnings. As a result of the reclassification, in the first quarter of 2018, the Company reduced the estimated loss on sale recorded in income from discontinued operations by $193, net of tax, for the increase in AOCI related to the assets held for sale. The reduction in the loss on sale resulted in a corresponding increase in assets held for sale and AOCI as of January 1, 2018 and the AOCI associated with assets held for sale was removed from the balance sheet when the sale closed on May 31, 2018. Additionally, as of January 1, 2018, the Company reclassified $105 of stranded tax effects related to continuing operations which reduced AOCI and increased retained earnings.

Financial Instruments- Recognition and Measurement

On January 1, 2018, the Company adopted updated guidance issued by the FASB for the recognition and measurement of financial instruments through a cumulative effect adjustment to the opening balances of retained earnings and AOCI. The new guidance requires investments in equity securities to be measured at fair value with any changes in valuation reported in net income except for investments that are consolidated or are accounted for under the equity method of accounting. The new guidance also requires a deferred tax asset resulting from net unrealized losses on available-for-sale fixed maturities that are

recognized in AOCI to be evaluated for recoverability in combination with the Company’s other deferred tax assets. Under prior guidance, the Company reported equity securities, available for sale ("AFS"), at fair value with changes in fair value reported in other comprehensive income. As of January 1, 2018, the Company reclassified from AOCI to retained earnings net unrealized gains of $83, after tax, related to equity securities having a fair value of $1.0 billion. In addition, $10 of net unrealized gains net of shadow DAC related to discontinued operations were reclassified from AOCI to retained earnings of the life and annuity run-off business held for sale, which increased the estimated loss on sale in 2018 by the same amount. Beginning in 2018, the Company reports equity securities at fair value with changes in fair value reported in net realized capital gains and losses.

Revenue Recognition

On January 1, 2018, the Company adopted the FASB’s updated guidance for recognizing revenue from contracts with customers, which excludes insurance contracts and financial instruments. Revenue subject to the guidance is recognized when, or as, goods or services are transferred to customers in an amount that reflects the consideration that an entity is expected to receive in exchange for those goods or services. For all but certain revenues associated with our Mutual Funds business, the updated guidance is consistent with previous guidance for the Company’s transactions and did not have an effect on the Company’s financial position, cash flows or net income. The updated guidance also updated criteria for determining when the Company acts as a principal or an agent. The Company determined that it is the principal for some of its mutual fund distribution service contracts and, upon adoption, reclassified distribution costs of $48 and $140 for the three and nine months ended September 30,2017, respectively, that were previously netted against fee income to insurance operating costs and other expenses.

Information about the nature, amount, timing of recognition and cash flows for the Company’s revenues subject to the updated guidance follows.

12

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

1. Basis of Presentation and Significant Accounting Policies (continued)

Revenue from Non-Insurance Contracts with Customers

		Three months ended September 30,				Nine months ended September 30,
	Revenue Line Item	2018		2017		2018		2017
Commercial Lines
Installment billing fees	Fee income	$	9	$	9	$	26	$	28
Personal Lines
Installment billing fees	Fee income	10		11		30		33
Insurance servicing revenues	Other revenues	24		24		66		66
Group Benefits
Administrative services	Fee income	43		19		131		57
Mutual Funds
Advisor, distribution and other management fees	Fee income	245		229		722		660
Other fees	Fee income	21		22		63		75
Corporate
Investment management and other fees	Fee income	15		1		21		2
Transition service revenues	Other revenues	6		—		8		—
Total revenues subject to updated guidance		$	373	$	315	$	1,067	$	921

Installment fees are charged on property and casualty insurance contracts for billing the insurance customer in installments over the policy term. These fees are recognized in fee income as earned on collection.

Insurance servicing revenues within Personal Lines consist of up-front commissions earned for collecting premiums and processing claims on insurance policies for which The Hartford does not assume underwriting risk, predominantly related to the National Flood Insurance Plan program. These insurance servicing revenues are recognized over the period of the flood program's policy terms.

Group Benefits products earn fee income from employers for the administration of underwriting, implementation and claims processing for employer self-funded plans and for leave management services. Fees are recognized as services are provided and collected monthly.

The Company provides investment management, administrative and distribution services to mutual funds and exchange-traded products. The Company assesses investment advisory, distribution and other asset management fees primarily based on the average daily net asset values from mutual funds and exchange-traded products, which are recorded in the period in which the services are provided and collected monthly. Fluctuations in domestic and international markets and related investment performance, volume and mix of sales and redemptions of mutual funds or exchange-traded products, and other changes to the composition of assets under management are all factors that ultimately have a direct effect on fee income earned.

Mutual Funds other fees primarily include transfer agent fees, generally assessed as a charge per account, and are recognized as fee income in the period in which the services are provided with payments collected monthly.

Corporate investment management and other fees are primarily for managing third party invested assets, including management of the invested assets of the Talcott Resolution life and annuity run-off business sold in the second quarter of 2018 ("Talcott Resolution"). These fees, calculated based on the average quarterly net asset values, are recorded in the period in which the services are provided and are collected quarterly. Fluctuations in markets and interest rates and other changes to the composition of assets under management are all factors that ultimately have a direct effect on fee income earned.

Corporate transition service revenues consist of operational services provided to The Hartford’s former life and annuity run-off business that will be provided for a period up to 24 months from the May 31, 2018 sale date. The transition service revenues are recognized as other revenues in the period in which the services are provided with payments collected monthly.

Future Adoption of New Accounting Standards

Hedging Activities

The FASB issued updated guidance on hedge accounting. See Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements included in the Company's 2017 Form 10-K Annual Report for more information on the future adoption of the new hedging activities accounting standard. The Company will adopt the updated guidance January 1, 2019, as required, although earlier adoption is permitted. The adoption is not expected to have a material effect on the Company’s financial position, cash flows or net income.

13

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

1. Basis of Presentation and Significant Accounting Policies (continued)

Leases

In accordance with the FASB’s update to its new lease accounting standard, the Company will adopt the new guidance as of the January 1, 2019 effective date with no change to comparative periods. See Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements included in the Company's 2017 Form 10-K Annual Report for more information on the future adoption of the new lease accounting standard. We do not expect a material impact to the consolidated financial statements; however, it is expected that assets and liabilities will increase based on the present value of remaining lease payments for leases in place at the adoption date.

Reserve for Future Policy Benefits

The FASB issued new guidance on accounting for long-duration insurance contracts. The Company’s long-duration insurance contracts include paid-up life insurance and whole-life insurance policies resulting from conversion from group life policies and run-off structured settlement and terminal funding agreement liabilities. Under existing guidance, a reserve for future policy benefits is calculated as the present value of future benefits and related expenses less the present value of any future premiums using assumptions “locked in” at the time the policies were issued, including discount rate, lapse rate, mortality, and expense assumptions. Under existing guidance, assumptions are only updated if there is an expected premium deficiency. The new guidance will require that underlying cash flow assumptions (such as for lapse rate, mortality and expenses) be reviewed and updated at least annually in the same quarter each year. The new guidance also requires that the discount rate assumption be updated each quarter and be based on an upper-medium grade (low-credit-risk) fixed-income investment yield. The change in the reserve estimate as a result of updating cash flow assumptions will be recognized in net income. The change in the reserve estimate as a result of updating the discount rate assumption will be recognized in other comprehensive income. Because reserves will be based on updated assumptions and no longer locked in at contract inception, there will no longer be a test for premium deficiency. The new guidance will be effective January 1, 2021, and will be applied to balances in place as of the earliest period presented. Early adoption is permitted. The Company has not yet determined the method or timing for adoption or estimated the effect on the Company’s financial statements.

14

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

2. Business Acquisitions

Aetna Group Insurance

On November 1, 2017, The Hartford acquired Aetna's U.S. group life and disability business through a reinsurance transaction for total consideration of $1.452 billion and recorded provisional estimates of the fair value of the assets acquired and liabilities assumed. In September 2018, The Hartford and Aetna agreed on the final assets acquired and liabilities assumed as of the acquisition date and The Hartford finalized its provisional

estimates with a final cash settlement in October. As a result, in the third quarter of 2018, The Hartford recorded additional assets and liabilities at fair value of $80 and $80, respectively, with no change in goodwill. The following table presents the preliminary allocation of the purchase price to the assets acquired and liabilities assumed as of the acquisition date, the measurement period adjustments recorded, and the final purchase price allocation.

Fair Value of Assets Acquired and Liabilities Assumed at the Acquisition Date

	Preliminary Value as of November 1, 2017 (as previously reported as of December 31, 2017)		Measurement Period Adjustments			As Adjusted Value as of November 1, 2017
Assets
Cash and invested assets [1]	$	3,360	$	45		$	3,405
Premiums receivable	96		7			103
Deferred income taxes, net	56		13			69
Other intangible assets	629		—			629
Property and equipment	68		—			68
Reinsurance recoverables	—		31			31
Other assets	16		(16		)	—
Total Assets Acquired	4,225		80			4,305
Liabilities
Unpaid losses and loss adjustment expenses	2,833		71			2,904
Reserve for future policy benefits payable	346		1			347
Other policyholder funds and benefits payable	245		1			246
Unearned premiums	3		1			4
Other liabilities	69		6			75
Total Liabilities Assumed	3,496		80			3,576
Net identifiable assets acquired	729		—			729
Goodwill [2]	723		—			723
Net Assets Acquired	$	1,452	$	—		$	1,452

[1] Includes $45 of cash received from Aetna in October 2018 in settlement of the final balance sheet and reported as a receivable in other assets in the Condensed Consolidated Balance Sheet as of September 30, 2018.

[2] Approximately $610 is deductible for income tax purposes.

The effect of measurement period adjustments on the Condensed Consolidated Statements of Operations for the three and nine months endedSeptember 30, 2018 was immaterial and was determined as if the accounting had been completed as of the acquisition date.

The following table presents supplemental pro forma amounts of revenue and net income for the Company for the three and nine months endedSeptember 30, 2017, as though the business was acquired on January 1, 2016.

Pro Forma Results

	Three months ended September 30, 2017 [1]		Nine months ended September 30, 2017 [1]
Total Revenue	$	4,777	$	14,309
Net Income	$	249	$	619

[1]Pro forma adjustments include the revenue and earnings of the Aetna U.S. group life and disability business as well as amortization of identifiable intangible assets acquired and the fair value adjustment to acquired insurance reserves. Pro forma adjustments do not include retrospective adjustments to defer and amortize acquisition costs as would be recorded under the Company’s accounting policy.

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THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

3. Earnings Per Common Share

Computation of Basic and Diluted Earnings per Common Share
	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions, except for per share data)	2018		2017		2018		2017
Earnings
Income from continuing operations, net of tax	$	427	$	145	$	1,289	$	296
Income from discontinued operations, net of tax	5		89		322		276
Net income	$	432	$	234	$	1,611	$	572
Shares
Weighted average common shares outstanding, basic	358.6		360.2		358.1		365.9
Dilutive effect of stock compensation plans	3.6		4.5		4.0		4.1
Dilutive effect of warrants	1.9		2.3		2.0		2.6
Weighted average common shares outstanding and dilutive potential common shares	364.1		367.0		364.1		372.6
Net income per common share
Basic
Income from continuing operations, net of tax	$	1.19	$	0.40	$	3.60	$	0.81
Income from discontinued operations, net of tax	$	0.01	$	0.25	$	0.90	$	0.75
Net income per common share	$	1.20	$	0.65	$	4.50	$	1.56
Diluted
Income from continuing operations, net of tax	$	1.17	$	0.40	$	3.54	$	0.79
Income from discontinued operations, net of tax	$	0.02	$	0.24	$	0.88	$	0.75
Net income per common share	$	1.19	$	0.64	$	4.42	$	1.54

16

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

4. Segment Information

The Company currently conducts business principally in five reporting segments including Commercial Lines, Personal Lines, Property & Casualty Other Operations, Group Benefits and Mutual Funds, as well as a Corporate category. 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 a 9.7% ownership interest in the limited partnership that acquired Talcott Resolution. For further discussion of continued involvement with Talcott Resolution, see Note 18 - Business Dispositions and Discontinued Operations of Notes to Condensed Consolidated Financial Statements.

The Company's revenues are generated primarily in the United States ("U.S."). Any foreign sourced revenue is immaterial.

Net Income

	Three Months Ended September 30,					Nine Months Ended September 30,
	2018			2017		2018		2017
Commercial Lines	$	289		$	90	$	959	$	579
Personal Lines	51			8		146		65
Property & Casualty Other Operations	9			18		31		62
Group Benefits	77			71		227		185
Mutual Funds	41			26		112		73
Corporate	(35		)	21		136		(392		)
Net income	$	432		$	234	$	1,611	$	572

17

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

4. Segment Information (continued)

Revenues

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Earned premiums and fee income
Commercial Lines
Workers’ compensation	$	845	$	828	$	2,495	$	2,461
Liability	170		150		480		450
Package business	343		325		1,013		965
Automobile	157		155		454		477
Professional liability	65		63		190		183
Bond	60		59		179		172
Property	154		152		456		451
Total Commercial Lines	1,794		1,732		5,267		5,159
Personal Lines
Automobile	598		653		1,809		1,975
Homeowners	261		279		785		843
Total Personal Lines [1]	859		932		2,594		2,818
Group Benefits
Group disability	684		386		2,051		1,146
Group life	652		383		1,968		1,176
Other	60		53		179		159
Total Group Benefits	1,396		822		4,198		2,481
Mutual Funds
Mutual fund and Exchange-Traded Products ("ETP") [2]	242		225		710		657
Talcott Resolution life and annuity separate accounts [3]	25		26		76		78
Total Mutual Funds	267		251		786		735
Corporate	15		1		21		2
Total earned premiums and fee income	4,331		3,738		12,866		11,195
Net investment income	444		404		1,323		1,209
Net realized capital gains	38		26		60		105
Other revenues	29		24		73		66
Total revenues	$	4,842	$	4,192	$	14,322	$	12,575

[1] For the three months endedSeptember 30, 2018 and 2017, AARP members accounted for earned premiums of $758 and $801, respectively. For the nine months endedSeptember 30, 2018 and 2017, AARP members accounted for earned premiums of $2.3 billion and $2.4 billion, respectively.

[2] Excludes distribution costs of $48 and $140 for the three and nine months ended September 30,2017, respectively, that were previously netted against fee income and are now presented gross in insurance operating costs and other expenses.

[3] Relates to Talcott Resolution life and annuity business sold in May, 2018 that is still managed by the Company's Mutual Funds segment.

18

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

5. Fair Value Measurements

The Company carries certain financial assets and liabilities at estimated fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants. Our fair value framework includes a hierarchy that gives the highest priority to the use of quoted prices in active markets, followed by the use of market observable inputs, followed by the use of unobservable inputs. The fair value hierarchy levels are as follows:

Level 1 Fair values based primarily on unadjusted quoted prices for identical assets or liabilities, in active markets that the Company has the ability to access at the measurement date.

Level 2 Fair values primarily based on observable inputs, other than quoted prices included in Level 1, or based on prices for similar assets and liabilities.

Level 3 Fair values derived when one or more of the significant inputs are unobservable (including assumptions about risk). With little or no observable market, the determination of fair values uses considerable judgment and represents the Company’s best estimate of an amount that could be realized in a market exchange for the asset or liability. Also included are securities that are traded within illiquid markets and/or priced by independent brokers.

The Company will classify the financial asset or liability by level based upon the lowest level input that is significant to the determination of the fair value. In most cases, both observable inputs (e.g., changes in interest rates) and unobservable inputs (e.g., changes in risk assumptions) are used to determine fair values that the Company has classified within Level 3.

Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of September 30, 2018
	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a recurring basis
Fixed maturities, AFS
Asset-backed-securities ("ABS")	$	1,191		$	—	$	1,137		$	54
Collateralized loan obligations ("CLOs")	1,326			—		1,030			296
Commercial mortgage-backed securities ("CMBS")	3,657			—		3,635			22
Corporate	13,492			—		12,941			551
Foreign government/government agencies	952			—		949			3
Municipal	10,602			—		10,593			9
Residential mortgage-backed securities ("RMBS")	3,118			—		2,184			934
U.S. Treasuries	1,828			695		1,133			—
Total fixed maturities	36,166			695		33,602			1,869
Fixed maturities, FVO	24			—		24			—
Equity securities, at fair value	1,035			905		52			78
Derivative assets
Credit derivatives	14			—		14			—
Equity derivatives	1			—		—			1
Foreign exchange derivatives	(1		)	—		(1		)	—
Total derivative assets [1]	14			—		13			1
Short-term investments	3,540			980		2,560			—
Total assets accounted for at fair value on a recurring basis	$	40,779		$	2,580	$	36,251		$	1,948
Liabilities accounted for at fair value on a recurring basis
Derivative liabilities
Foreign exchange derivatives	(10		)	—		(10		)	—
Interest rate derivatives	(51		)	—		(53		)	2
Total derivative liabilities [2]	(61		)	—		(63		)	2
Contingent consideration [3]	(32		)	—		—			(32		)
Total liabilities accounted for at fair value on a recurring basis	$	(93	)	$	—	$	(63	)	$	(30	)

19

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

5. Fair Value Measurements (continued)

Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of December 31, 2017
	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a recurring basis
Fixed maturities, AFS
Asset-backed-securities ("ABS")	$	1,126		$	—	$	1,107		$	19
Collateralized loan obligations ("CLOs")	1,260			—		1,165			95
Commercial mortgage-backed securities ("CMBS")	3,336			—		3,267			69
Corporate	12,804			—		12,284			520
Foreign government/government agencies	1,110			—		1,108			2
Municipal	12,485			—		12,468			17
Residential mortgage-backed securities ("RMBS")	3,044			—		1,814			1,230
U.S. Treasuries	1,799			333		1,466			—
Total fixed maturities	36,964			333		34,679			1,952
Fixed maturities, FVO	41			—		41			—
Equity securities, AFS	1,012			887		49			76
Derivative assets
Credit derivatives	9			—		9			—
Equity derivatives	1			—		—			1
Foreign exchange derivatives	(1		)	—		(1		)	—
Interest rate derivatives	1			—		1			—
Total derivative assets [1]	10			—		9			1
Short-term investments	2,270			1,098		1,172			—
Total assets accounted for at fair value on a recurring basis	$	40,297		$	2,318	$	35,950		$	2,029
Liabilities accounted for at fair value on a recurring basis
Derivative liabilities
Credit derivatives	(3		)	—		(3		)	—
Foreign exchange derivatives	(13		)	—		(13		)	—
Interest rate derivatives	(84		)	—		(85		)	1
Total derivative liabilities [2]	(100		)	—		(101		)	1
Contingent consideration [3]	(29		)	—		—			(29		)
Total liabilities accounted for at fair value on a recurring basis	$	(129	)	$	—	$	(101	)	$	(28	)

[1] Includes derivative instruments in a net positive fair value position after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law. See footnote 2 to this table for derivative liabilities.

[2] Includes derivative instruments in a net negative fair value position (derivative liability) after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law.

[3] For additional information see the Contingent Consideration section below.

Fixed Maturities, Equity Securities, Short-term Investments, and Derivatives

Valuation Techniques

The Company generally determines fair values using valuation techniques that use prices, rates, and other relevant information evident from market transactions involving identical or similar instruments. Valuation techniques also include, where appropriate, estimates of future cash flows that are converted into a single discounted amount using current market expectations. The Company uses a "waterfall" approach

comprised of the following pricing sources and techniques, which are listed in priority order:

• Quoted prices, unadjusted, for identical assets or liabilities in active markets, which are classified as Level 1.

• Prices from third-party pricing services, which primarily utilize a combination of techniques. These services utilize recently reported trades of identical, similar, or benchmark securities making adjustments for market observable inputs available through the reporting date. If there are no recently reported trades, they may use a discounted cash flow technique to develop a price using expected cash flows based upon the anticipated future performance of the underlying collateral discounted at an estimated market rate. Both

20

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

5. Fair Value Measurements (continued)

techniques develop prices that consider the time value of future cash flows and provide a margin for risk, including liquidity and credit risk. Most prices provided by third-party pricing services are classified as Level 2 because the inputs used in pricing the securities are observable. However, some securities that are less liquid or trade less actively are classified as Level 3. Additionally, certain long-dated securities, such as municipal securities and bank loans, include benchmark interest rate or credit spread assumptions that are not observable in the marketplace and are thus classified as Level 3.

• Internal matrix pricing, which is a valuation process internally developed for private placement securities for which the Company is unable to obtain a price from a third-party pricing service. Internal pricing matrices determine credit spreads that, when combined with risk-free rates, are applied to contractual cash flows to develop a price. The Company develops credit spreads using market based data for public securities adjusted for credit spread differentials between public and private securities, which are obtained from a survey of multiple private placement brokers. The market-based reference credit spread considers the issuer’s financial strength and term to maturity, using an independent public security index and trade information, while the credit spread differential considers the non-public nature of the security. Securities priced using internal matrix pricing are classified as Level 2 because the inputs are observable or can be corroborated with observable data.

• Independent broker quotes, which are typically non-binding, use inputs that can be difficult to corroborate with observable market based data. Brokers may use present value techniques using assumptions specific to the security types, or they may use recent transactions of similar securities. Due to the lack of transparency in the process that brokers use to develop prices, valuations that are based on independent broker quotes are classified as Level 3.

The fair value of derivative instruments is determined primarily using a discounted cash flow model or option model technique and incorporate counterparty credit risk. In some cases, quoted market prices for exchange-traded and OTC-cleared derivatives may be used and in other cases independent broker quotes may be used. The pricing valuation models primarily use inputs that are observable in the market or can be corroborated by observable market data. The valuation of certain derivatives may include significant inputs that are unobservable, such as volatility levels, and reflect the Company’s view of what other market participants would use when pricing such instruments.

Valuation Controls

The fair value process for investments is monitored by the Valuation Committee, which is a cross-functional group of senior management within the Company that meets at least quarterly. The purpose of the committee is to oversee the pricing policy and procedures, as well as to approve changes to valuation methodologies and pricing sources. Controls and procedures used to assess third-party pricing services are reviewed by the Valuation Committee, including the results of annual due-diligence reviews.

There are also two working groups under the Valuation Committee: a Securities Fair Value Working Group (“Securities Working Group”) and a Derivatives Fair Value Working Group ("Derivatives Working Group"). The working groups, which include various investment, operations, accounting and risk management professionals, meet monthly to review market data trends, pricing and trading statistics and results, and any proposed pricing methodology changes.

The Securities Working Group reviews prices received from third parties to ensure that the prices represent a reasonable estimate of the fair value. The group considers trading volume, new issuance activity, market trends, new regulatory rulings and other factors to determine whether the market activity is significantly different than normal activity in an active market. A dedicated pricing unit follows up with trading and investment sector professionals and challenges prices of third-party pricing services when the estimated assumptions used differ from what the unit believes a market participant would use. If the available evidence indicates that pricing from third-party pricing services or broker quotes is based upon transactions that are stale or not from trades made in an orderly market, the Company places little, if any, weight on the third party service’s transaction price and will estimate fair value using an internal process, such as a pricing matrix.

The Derivatives Working Group reviews the inputs, assumptions and methodologies used to ensure that the prices represent a reasonable estimate of the fair value. A dedicated pricing team works directly with investment sector professionals to investigate the impacts of changes in the market environment on prices or valuations of derivatives. New models and any changes to current models are required to have detailed documentation and are validated to a second source. The model validation documentation and results of validation are presented to the Valuation Committee for approval.

The Company conducts other monitoring controls around securities and derivatives pricing including, but not limited to, the following:

• Review of daily price changes over specific thresholds and new trade comparison to third-party pricing services.

• Daily comparison of OTC derivative market valuations to counterparty valuations.

• Review of weekly price changes compared to published bond prices of a corporate bond index.

• Monthly reviews of price changes over thresholds, stale prices, missing prices, and zero prices.

• Monthly validation of prices to a second source for securities in most sectors and for certain derivatives.

In addition, the Company’s enterprise-wide Operational Risk Management function, led by the Chief Risk Officer, is responsible for model risk management and provides an independent review of the suitability and reliability of model inputs, as well as an analysis of significant changes to current models.

21

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

5. Fair Value Measurements (continued)

Valuation Inputs

Quoted prices for identical assets in active markets are considered Level 1 and consist of on-the-run U.S. Treasuries,

money market funds, exchange-traded equity securities, open-ended mutual funds, short-term investments, and exchange traded futures and option contracts.

22

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

5. Fair Value Measurements (continued)

Valuation Inputs Used in Levels 2 and 3 Measurements for Securities and Derivatives
Level 2 Primary Observable Inputs		Level 3 Primary Unobservable Inputs
Fixed Maturity Investments
Structured securities (includes ABS, CDOs, CMBS and RMBS)
	• Benchmark yields and spreads • Monthly payment information • Collateral performance, which varies by vintage year and includes delinquency rates, loss severity rates and refinancing assumptions • Credit default swap indices Other inputs for ABS and RMBS: • Estimate of future principal prepayments, derived from the characteristics of the underlying structure • Prepayment speeds previously experienced at the interest rate levels projected for the collateral		• Independent broker quotes • Credit spreads beyond observable curve • Interest rates beyond observable curve Other inputs for less liquid securities or those that trade less actively, including subprime RMBS: • Estimated cash flows • Credit spreads, which include illiquidity premium • Constant prepayment rates • Constant default rates • Loss severity
Corporates
	• Benchmark yields and spreads • Reported trades, bids, offers of the same or similar securities • Issuer spreads and credit default swap curves Other inputs for investment grade privately placed securities that utilize internal matrix pricing: • Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature		• Independent broker quotes • Credit spreads beyond observable curve • Interest rates beyond observable curve Other inputs for below investment grade privately placed securities: • Independent broker quotes • Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature
U.S Treasuries, Municipals, and Foreign government/government agencies
	• Benchmark yields and spreads • Issuer credit default swap curves • Political events in emerging market economies • Municipal Securities Rulemaking Board reported trades and material event notices • Issuer financial statements		• Credit spreads beyond observable curve • Interest rates beyond observable curve
Equity Securities
	• Quoted prices in markets that are not active		• For privately traded equity securities, internal discounted cash flow models utilizing earnings multiples or other cash flow assumptions that are not observable
Short Term Investments
	• Benchmark yields and spreads • Reported trades, bids, offers • Issuer spreads and credit default swap curves • Material event notices and new issue money market rates		Not applicable
Derivatives
Credit derivatives
	• Swap yield curve • Credit default swap curves		Not applicable
Equity derivatives
	• Equity index levels • Swap yield curve		• Independent broker quotes • Equity volatility
Foreign exchange derivatives
	• Swap yield curve • Currency spot and forward rates • Cross currency basis curves		Not applicable
Interest rate derivatives
	• Swap yield curve		• Independent broker quotes • Interest rate volatility

23

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

5. Fair Value Measurements (continued)

Significant Unobservable Inputs for Level 3 - Securities
Assets accounted for at fair value on a recurring basis	Fair Value		Predominant Valuation Technique	Significant Unobservable Input	Minimum	Maximum	Weighted Average [1]	Impact of Increase in Input on Fair Value [2]
As of September 30, 2018
CMBS [3]	$	12	Discounted cash flows	Spread (encompasses prepayment, default risk and loss severity)	9 bps	1,040 bps	177 bps	Decrease
Corporate [4]	$	289	Discounted cash flows	Spread	100 bps	761 bps	201 bps	Decrease
Municipal	$	9	Discounted cash flows	Spread	160 bps	160 bps	160 bps	Decrease
RMBS [3]	$	913	Discounted cash flows	Spread	7 bps	288 bps	67 bps	Decrease
				Constant prepayment rate	1%	15%	6%	Decrease [5]
				Constant default rate	1%	8%	3%	Decrease
				Loss severity	—%	100%	60%	Decrease
As of December 31, 2017
CMBS [3]	$	56	Discounted cash flows	Spread (encompasses prepayment, default risk and loss severity)	9 bps	1,040 bps	400 bps	Decrease
Corporate [4]	$	251	Discounted cash flows	Spread	103 bps	1,000 bps	242 bps	Decrease
Municipal	$	17	Discounted cash flows	Spread	192 bps	250 bps	219 bps	Decrease
RMBS [3]	$	1,215	Discounted cash flows	Spread	24 bps	351 bps	74 bps	Decrease
				Constant prepayment rate	1%	25%	6%	Decrease [5]
				Constant default rate	—%	9%	4%	Decrease
				Loss severity	—%	100%	66%	Decrease

[1] The weighted average is determined based on the fair value of the securities.

[2] Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table.

[3] Excludes securities for which the Company bases fair value on broker quotations.

[4] Excludes securities for which the Company bases fair value on broker quotations; however, included are broker priced lower-rated private placement securities for which the Company receives spread and yield information to corroborate the fair value.

[5] Decrease for above market rate coupons and increase for below market rate coupons.

Significant Unobservable Inputs for Level 3 - Derivatives
	Fair Value		Predominant Valuation  Technique	Significant Unobservable Input	Minimum		Maximum		Impact of  Increase in Input on  Fair Value [1]
As of September 30, 2018
Interest rate swaptions [2]	$	2	Option model	Interest rate volatility	3	%	3	%	Increase
Equity Options	1		Option model	Equity volatility	19	%	26	%	Increase
As of December 31, 2017
Interest rate swaptions [2]	$	1	Option model	Interest rate volatility	2	%	2	%	Increase
Equity options	$	1	Option model	Equity volatility	18	%	22	%	Increase

[1] Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. Changes are based on long positions, unless otherwise noted. Changes in fair value will be inversely impacted for short positions.

[2] The swaptions presented are purchased options that have the right to enter into a pay-fixed swap.

24

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

5. Fair Value Measurements (continued)

The tables above excludes ABS and certain corporate securities for which fair values are predominately based on independent broker quotes. While the Company does not have access to the significant unobservable inputs that independent brokers may use in their pricing process, the Company believes brokers likely use inputs similar to those used by the Company and third-party pricing services to price similar instruments. As such, in their pricing models, brokers likely use estimated loss severity rates, prepayment rates, constant default rates and credit spreads. Therefore, similar to non-broker priced securities, increases in these inputs would generally cause fair values to decrease. As ofSeptember 30, 2018, no significant adjustments were made by the Company to broker prices received.

Transfers between Levels

Transfers of securities among the levels occur at the beginning of the reporting period. The amount of transfers from Level 1 to Level 2 was $379 and $1.3 billion for three and nine months endedSeptember 30, 2018, respectively, and $300 and $1.1 billion for the three and nine months endedSeptember 30, 2017, respectively, which represented previously on-the-run U.S. Treasury securities that are now off-the-run. Transfers from Level 2 to Level 1 for both the three and nine months endedSeptember 30, 2018, were immaterial and there were no transfers from Level 2 to Level 1 for the same period in 2017. See the fair value rollforward tables for the three and nine months endedSeptember 30, 2018 and 2017, for the transfers into and out of Level 3.

Contingent Consideration

The acquisition of Lattice Strategies LLC ("Lattice") in 2016 requires the Company to make payments to former owners of Lattice of up to $60 contingent upon growth in exchange-traded products ("ETP") assets under management ("AUM") over a four-year period beginning on the date of acquisition. The contingent

consideration is measured at fair value on a quarterly basis by projecting future eligible ETP AUM over the contingency period to estimate the amount of expected payout. The future expected payout is discounted back to the valuation date using a risk-adjusted discount rate of 16.7%. The risk-adjusted discount rate is an internally generated and significant unobservable input to fair value.

The contingency period for ETP AUM growth ends in June, 2020 and management will adjust the fair value of the contingent consideration if and when it revises its projection of ETP AUM for the acquired business. Before discounting to fair value, the Company has accrued a contingent commission payable of $32 assuming ETP AUM for the acquired business grows to approximately $4 billion over the contingency period. The Company will evaluate the projected AUM growth again in the fourth quarter of 2018.

Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs

The Company uses derivative instruments to manage the risk associated with certain assets and liabilities. However, the derivative instrument may not be classified with the same fair value hierarchy level as the associated asset or liability. Therefore, the realized and unrealized gains and losses on derivatives reported in the Level 3 rollforward may be offset by realized and unrealized gains and losses of the associated assets and liabilities in other line items of the financial statements.

25

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

5. Fair Value Measurements (continued)

Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Three Months Ended September 30, 2018
					Total realized/unrealized gains (losses)
		Fair value as of June 30, 2018			Included in net income [1]			Included in OCI [2]			Purchases		Settlements			Sales			Transfers into Level 3 [3]		Transfers out of Level 3 [3]			Fair value as of September 30, 2018
Assets
Fixed Maturities, AFS
	ABS	$	57		$	—		$	—		$	39	$	(2	)	$	—		$	9	$	(49	)	$	54
	CLOs	159			—			—			211		—			—			—		(74		)	296
	CMBS	28			(1		)	1			—		(1		)	—			—		(5		)	22
	Corporate	559			—			(2		)	12		(2		)	(12		)	—		(4		)	551
	Foreign Govt./Govt. Agencies	3			—			—			—		—			—			—		—			3
	Municipal	9			—			—			—		—			—			—		—			9
	RMBS	1,137			—			(3		)	—		(77		)	(26		)	—		(97		)	934
Total Fixed Maturities, AFS		1,952			(1		)	(4		)	262		(82		)	(38		)	9		(229		)	1,869
Equity Securities, at fair value		66			—			—			12		—			—			—		—			78
Derivatives, net [4]
	Equity	1			—			—			—		—			—			—		—			1
	Interest rate	2			—			—			—		—			—			—		—			2
Total Derivatives, net [4]		3			—			—			—		—			—			—		—			3
Total Assets		$	2,021		$	(1	)	$	(4	)	$	274	$	(82	)	$	(38	)	$	9	$	(229	)	$	1,950
Liabilities
Contingent Consideration [5]		(31		)	(1		)	—			—		—			—			—		—			(32		)
Total Liabilities		$	(31	)	$	(1	)	$	—		$	—	$	—		$	—		$	—	$	—		$	(32	)

26

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

5. Fair Value Measurements (continued)

Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Nine Months Ended September 30, 2018
					Total realized/unrealized gains (losses)
		Fair value as of January 1, 2018			Included in net income [1]			Included in OCI [2]			Purchases		Settlements			Sales			Transfers into Level 3 [3]		Transfers out of Level 3 [3]			Fair value as of September 30, 2018
Assets
Fixed Maturities, AFS
	ABS	$	19		$	—		$	—		$	89	$	(5	)	$	—		$	12	$	(61	)	$	54
	CLOs	95			—			—			309		—			(4		)	—		(104		)	296
	CMBS	69			(1		)	—			25		(4		)	(8		)	—		(59		)	22
	Corporate	520			1			(10		)	143		(34		)	(43		)	15		(41		)	551
	Foreign Govt./Govt. Agencies	2			—			—			1		—			—			—		—			3
	Municipal	17			—			(1		)	—		—			—			—		(7		)	9
	RMBS	1,230			—			(10		)	170		(251		)	(27		)	—		(178		)	934
Total Fixed Maturities, AFS		1,952			—			(21		)	737		(294		)	(82		)	27		(450		)	1,869
Equity Securities, at fair value		76			28			1			13		—			(40		)	—		—			78
Derivatives, net [4]
	Equity	1			1			—			1		—			(2		)	—		—			1
	Interest rate	1			1			—			—		—			—			—		—			2
Total Derivatives, net [4]		2			2			—			1		—			(2		)	—		—			3
Total Assets		$	2,030		$	30		$	(20	)	$	751	$	(294	)	$	(124	)	$	27	$	(450	)	$	1,950
Liabilities
Contingent Consideration [5]		(29		)	(3		)	—			—		—			—			—		—			(32		)
Total Liabilities		$	(29	)	$	(3	)	$	—		$	—	$	—		$	—		$	—	$	—		$	(32	)

27

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

5. Fair Value Measurements (continued)

Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Three Months Ended September 30, 2017
					Total realized/unrealized gains (losses)
		Fair value as of June 30, 2017			Included in net income [1]			Included in OCI [2]			Purchases		Settlements			Sales			Transfers into Level 3 [3]		Transfers out of Level 3 [3]			Fair value as of September 30, 2017
Assets
Fixed Maturities, AFS
	ABS	$	63		$	—		$	—		$	—	$	(3	)	$	(6	)	$	4	$	(32	)	$	26
	CLOs	203			—			—			9		—			—			—		(116		)	96
	CMBS	65			(1		)	—			—		(3		)	—			—		—			61
	Corporate	528			—			5			36		(1		)	(24		)	19		(30		)	533
	Foreign Govt./Govt. Agencies	22			—			1			7		—			—			—		(5		)	25
	Municipal	16			—			—			—		—			—			—		—			16
	RMBS	1,272			—			17			39		(72		)	—			—		(1		)	1,255
Total Fixed Maturities, AFS		2,169			(1		)	23			91		(79		)	(30		)	23		(184		)	2,012
Equity Securities, AFS		55			—			(2		)	20		—			—			—		—			73
Derivatives, net [4]
	Equity	2			—			—			—		—			—			—		—			2
	Interest rate	3			(1		)	—			—		—			—			—		—			2
Total Derivatives, net [4]		5			(1		)	—			—		—			—			—		—			4
Total Assets		$	2,229		$	(2	)	$	21		$	111	$	(79	)	$	(30	)	$	23	$	(184	)	$	2,089
Liabilities
Contingent Consideration [5]		(27		)	(1		)	—			—		—			—			—		—			(28		)
Total Liabilities		$	(27	)	$	(1	)	$	—		$	—	$	—		$	—		$	—	$	—		$	(28	)

28

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

5. Fair Value Measurements (continued)

Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Nine Months Ended September 30, 2017
					Total realized/unrealized gains (losses)
		Fair value as of January 1, 2017			Included in net income [1]			Included in OCI [2]			Purchases		Settlements			Sales			Transfers into Level 3 [3]		Transfers out of Level 3 [3]			Fair value as of September 30, 2017
Assets
Fixed Maturities, AFS
	ABS	$	45		$	—		$	—		$	56	$	(6	)	$	(6	)	$	27	$	(90	)	$	26
	CLOs	154			—			—			195		(101		)	—			—		(152		)	96
	CMBS	59			(2		)	—			42		(7		)	—			—		(31		)	61
	Corporate	514			1			16			169		(42		)	(141		)	54		(38		)	533
	Foreign Govt./Govt. Agencies	47			—			3			12		—			(2		)	—		(35		)	25
	Municipal	46			4			1			—		—			(35		)	—		—			16
	RMBS	1,261			—			39			156		(193		)	(7		)	—		(1		)	1,255
Total Fixed Maturities, AFS		2,126			3			59			630		(349		)	(191		)	81		(347		)	2,012
Fixed Maturities, FVO		11			—			—			4		(2		)	(13		)	—		—			—
Equity Securities, AFS		55			—			(4		)	22		—			—			—		—			73
Derivatives, net [4]
	Equity	—			(3		)	—			5		—			—			—		—			2
	Interest rate	9			(7		)	—			—		—			—			—		—			2
	Other contracts	1			(1		)	—			—		—			—			—		—			—
Total Derivatives, net [4]		10			(11		)	—			5		—			—			—		—			4
Total Assets		$	2,202		$	(8	)	$	55		$	661	$	(351	)	$	(204	)	$	81	$	(347	)	$	2,089
Liabilities
Contingent Consideration [5]		(25		)	(3		)	—			—		—			—			—		—			(28		)
Total Liabilities		$	(25	)	$	(3	)	$	—		$	—	$	—		$	—		$	—	$	—		$	(28	)

[1] Amounts in these columns are generally reported in net realized capital gains (losses). All amounts are before income taxes.

[2] All amounts are before income taxes.

[3] Transfers in and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs.

[4] Derivative instruments are reported in this table on a net basis for asset (liability) positions and reported in the Condensed Consolidated Balance Sheets in other investments and other liabilities.

[5] For additional information, see Note 2 - Business Acquisitions of Notes to Consolidated Financial Statements included in the Company's 2017 form 10-K Annual Report for discussion of the contingent consideration in connection with the acquisition of Lattice. Includes both market and non-market impacts in deriving realized and unrealized gains (losses).

29

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

5. Fair Value Measurements (continued)

Changes in Unrealized Gains (Losses) Included in Net Income for Financial Instruments Classified as Level 3 Still Held at End of Period
		Three months ended September 30,						Nine months ended September 30,
		2018 [1] [2]			2017 [1] [2]			2018 [1] [2]			2017 [1] [2]
Assets
Fixed Maturities, AFS
	CMBS	$	—		$	—		$	—		$	(1	)
Total Fixed Maturities, AFS		—			—			—			(1		)
Derivatives, net
	Equity	(1		)	—			(1		)	(2		)
	Interest rate	—			(1		)	—			(6		)
Total Derivatives, net		(1		)	(1		)	(1		)	(8		)
Total Assets		$	(1	)	$	(1	)	$	(1	)	$	(9	)
Liabilities
Contingent Consideration [3]		(1		)	(1		)	(3		)	(3		)
Total Liabilities		$	(1	)	$	(1	)	$	(3	)	$	(3	)

[1] All amounts in these rows are reported in net realized capital gains (losses). All amounts are before income taxes.

[2] Amounts presented are for Level 3 only and therefore may not agree to other disclosures included herein.

[3] For additional information, see Note 2 - Business Acquisitions of Notes to Consolidated Financial Statements included in the Company's 2017 form 10-K Annual Report for discussion of the contingent consideration in connection with the acquisition of Lattice.

Fair Value Option

The Company has elected the fair value option for certain securities that contain embedded credit derivatives with underlying credit risk primarily related to residential real estate, and these securities are included within Fixed Maturities, FVO on the Condensed Consolidated Balance Sheets. The Company reports changes in the fair value of these securities in net realized capital gains and losses.

As of September 30, 2018 and December 31, 2017, the fair value of assets and liabilities using the fair value option was $24 and $41, respectively, within the residential real estate sector.

For three and nine months endedSeptember 30, 2018 there were no realized capital gains (losses) related to the fair value of assets using the fair value option. For both the three and nine months endedSeptember 30, 2017 the realized capital gains (losses) related to the fair value of assets using the fair value option were $(1) within the residential real estate and corporate sectors.

Financial Instruments Not Carried at Fair Value

Financial Assets and Liabilities Not Carried at Fair Value
	Fair Value Hierarchy Level	Carrying Amount		Fair Value
September 30, 2018
Assets
Mortgage loans	Level 3	$	3,559	$	3,518
Liabilities
Other policyholder funds and benefits payable	Level 3	$	784	$	785
Senior notes [1]	Level 2	$	3,587	$	3,940
Junior subordinated debentures [1]	Level 2	$	1,089	$	1,142
December 31, 2017
Assets
Mortgage loans	Level 3	$	3,175	$	3,220
Liabilities
Other policyholder funds and benefits payable	Level 3	$	825	$	827
Senior notes [1]	Level 2	$	3,415	$	4,054
Junior subordinated debentures [1]	Level 2	$	1,583	$	1,699

[1] Included in long-term debt in the Consolidated Balance Sheets, except for current maturities, which are included in short-term debt.

30

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

6. Investments

Net Realized Capital Gains
	Three Months Ended September 30,						Nine Months Ended September 30,
(Before tax)	2018			2017			2018			2017
Gross gains on sales	$	26		$	46		$	91		$	184
Gross losses on sales	(41		)	(16		)	(129		)	(84		)
Equity securities [1]	46			—			88			—
Net OTTI losses recognized in earnings	(1		)	(1		)	(1		)	(4		)
Transactional foreign currency revaluation	—			—			1			14
Non-qualifying foreign currency derivatives	1			—			2			(14		)
Other, net [2]	7			(3		)	8			9
Net realized capital gains	$	38		$	26		$	60		$	105

[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 gains (losses) on non-qualifying derivatives, excluding foreign currency derivatives, of $8 and $(1), respectively, for the three months ended September 30, 2018 and 2017. For the nine months ended September 30, 2018 and 2017, the non-qualifying derivatives, excluding foreign currency derivatives, were $6 and $7, respectively.

Net realized capital gains (losses) from investment sales are reported as a component of revenues and are determined on a specific identification basis. Before tax, net gains (losses) on sales and impairments previously reported as unrealized gains or losses in AOCI were $(15) and $(59) for the three and nine months endedSeptember 30, 2018, respectively, and $32 and $102 for the three and nine months endedSeptember 30, 2017, respectively. Proceeds from sales of AFS securities totaled $4.6 billion and $13.1 billion for the three and nine months endedSeptember 30, 2018, respectively, and $2.9 billion and $11.4 billion for the three and nine months endedSeptember 30, 2017, respectively. Effective January 1, 2018, with adoption of new accounting guidance for equity securities, the proceeds from sales of AFS securities no longer includes equity securities.

The net unrealized gain (loss) on equity securities included in net realized capital gains (losses) related to equity securities still held as of September 30, 2018, was $41 and $50 for the three and nine months endedSeptember 30, 2018, respectively. Prior to January 1, 2018, changes in net unrealized gains (losses) on equity securities were included in AOCI.

Recognition and Presentation of Other-Than-Temporary Impairments

The Company will record an other-than-temporary impairment (“OTTI”) for fixed maturities if the Company intends to sell or it is more likely than not that the Company will be required to sell the security before a recovery in value. A corresponding charge is recorded in net realized capital losses equal to the difference between the fair value and amortized cost basis of the security.

The Company will also record an OTTI for those fixed maturities for which the Company does not expect to recover the entire amortized cost basis. For these securities, the excess of the

amortized cost basis over its fair value is separated into the portion representing a credit OTTI, which is recorded in net realized capital losses, and the remaining non-credit amount, which is recorded in OCI. The credit OTTI amount is the excess of its amortized cost basis over the Company’s best estimate of discounted expected future cash flows. The non-credit amount is the excess of the best estimate of the discounted expected future cash flows over the fair value. The Company’s best estimate of discounted expected future cash flows becomes the new cost basis and accretes prospectively into net investment income over the estimated remaining life of the security.

Developing the Company’s best estimate of expected future cash flows is a quantitative and qualitative process that incorporates information received from third-party sources along with certain internal assumptions regarding the future performance. The Company's considerations include, but are not limited to, (a) changes in the financial condition of the issuer and the underlying collateral, (b) whether the issuer is current on contractually obligated interest and principal payments, (c) credit ratings, (d) payment structure of the security and (e) the extent to which the fair value has been less than the amortized cost of the security.

For non-structured securities, assumptions include, but are not limited to, economic and industry-specific trends and fundamentals, security-specific developments, industry earnings multiples and the issuer’s ability to restructure and execute asset sales.

For structured securities, assumptions include, but are not limited to, various performance indicators such as historical and projected default and recovery rates, credit ratings, current and projected delinquency rates, loan-to-value ("LTV") ratios, average cumulative collateral loss rates that vary by vintage year, prepayment speeds, and property value declines. These assumptions require the use of significant management judgment and include the probability of issuer default and estimates regarding timing and amount of expected recoveries which may include estimating the underlying collateral value.

Prior to January 1, 2018, the Company recorded an OTTI for certain equity securities with debt-like characteristics if the Company intended to sell or it was more likely than not that the Company was required to sell the security before a recovery in value as well as for those equity securities for which the Company did not expect to recover the entire amortized cost basis. The Company also recorded an OTTI for equity securities where the decline in the fair value was deemed to be other-than-temporary. For further discussion of these policies, see Recognition and Presentation of Other-Than-Temporary Impairments within Note 6 - Investments of Notes to Consolidated Financial Statements included in the Company’s 2017 Form 10-K Annual Report.

31

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

6. Investments (continued)

Impairments in Earnings by Type
	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Credit impairments	$	1	$	—	$	1	$	2
Intent-to-sell impairments	—		—		—		—
Impairments on equity securities	—		1		—		2
Total impairments	$	1	$	1	$	1	$	4

Cumulative Credit Impairments
	Three Months Ended September 30,						Nine Months Ended September 30,
(Before tax)	2018			2017			2018			2017
Balance as of beginning of period	$	(20	)	$	(94	)	$	(25	)	$	(110	)
Additions for credit impairments recognized on [1]:
Securities not previously impaired	—			—			—			—
Securities previously impaired	(1		)	—			(1		)	(2		)
Reductions for credit impairments previously recognized on:
Securities that matured or were sold during the period	1			—			6			8
Securities due to an increase in expected cash flows	—			—			—			10
Balance as of end of period	$	(20	)	$	(94	)	$	(20	)	$	(94	)

[1] These additions are included in the net OTTI losses recognized in earnings in the Condensed Consolidated Statements of Operations.

32

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

6. Investments (continued)

Available-for-Sale Securities

AFS Securities by Type
	September 30, 2018												December 31, 2017
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Non-Credit OTTI [1]			Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Non-Credit OTTI [1]
ABS	$	1,191	$	3	$	(3	)	$	1,191	$	—		$	1,119	$	9	$	(2	)	$	1,126	$	—
CLOs	1,328		1		(3		)	1,326		—			1,257		3		—			1,260		—
CMBS	3,718		25		(86		)	3,657		(5		)	3,304		58		(26		)	3,336		(5		)
Corporate	13,640		176		(324		)	13,492		—			12,370		490		(56		)	12,804		—
Foreign govt./govt. agencies	961		11		(20		)	952		—			1,071		43		(4		)	1,110		—
Municipal	10,276		402		(76		)	10,602		—			11,743		754		(12		)	12,485		—
RMBS	3,126		44		(52		)	3,118		—			2,985		63		(4		)	3,044		—
U.S. Treasuries	1,854		17		(43		)	1,828		—			1,763		46		(10		)	1,799		—
Total fixed maturities, AFS	36,094		679		(607		)	36,166		(5		)	35,612		1,466		(114		)	36,964		(5		)
Equity securities, AFS [2]													907		121		(16		)	1,012		—
Total AFS securities	$	36,094	$	679	$	(607	)	$	36,166	$	(5	)	$	36,519	$	1,587	$	(130	)	$	37,976	$	(5	)

[1] Represents the amount of cumulative non-credit OTTI losses recognized in OCI on securities that also had credit impairments. These losses are included in gross unrealized losses in AOCI as of September 30, 2018 and December 31, 2017.

[2] Effective January 1, 2018, with the adoption of new accounting standards for financial instruments, equity securities, AFS were reclassified to equity securities at fair value and are excluded from the table above as of September 30, 2018.

Fixed maturities, AFS, by Contractual Maturity Year
	September 30, 2018				December 31, 2017
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
One year or less	$	1,033	$	1,037	$	1,507	$	1,513
Over one year through five years	6,233		6,242		5,007		5,119
Over five years through ten years	6,543		6,469		6,505		6,700
Over ten years	12,922		13,126		13,928		14,866
Subtotal	26,731		26,874		26,947		28,198
Mortgage-backed and asset-backed securities	9,363		9,292		8,665		8,766
Total fixed maturities, AFS	$	36,094	$	36,166	$	35,612	$	36,964

Estimated maturities may differ from contractual maturities due to security call or prepayment provisions. Due to the potential for variability in payment speeds (i.e. prepayments or extensions), mortgage-backed and asset-backed securities are not categorized by contractual maturity.

Concentration of Credit Risk

The Company aims to maintain a diversified investment portfolio including issuer, sector and geographic stratification, where

applicable, and has established certain exposure limits, diversification standards and review procedures to mitigate credit risk. The Company had no investment exposure to any credit concentration risk of a single issuer greater than 10% of the Company's stockholders' equity, other than the U.S. government and certain U.S. government agencies as of September 30, 2018 or December 31, 2017.

33

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

6. Investments (continued)

Unrealized Losses on AFS Securities

Unrealized Loss Aging for AFS Securities by Type and Length of Time as of September 30, 2018
	Less Than 12 Months							12 Months or More							Total
	Amortized Cost		Fair Value		Unrealized Losses			Amortized Cost		Fair Value		Unrealized Losses			Amortized Cost		Fair Value		Unrealized Losses
ABS	$	668	$	666	$	(2	)	$	74	$	73	$	(1	)	$	742	$	739	$	(3	)
CLOs	929		926		(3		)	10		10		—			939		936		(3		)
CMBS	1,995		1,952		(43		)	740		697		(43		)	2,735		2,649		(86		)
Corporate	7,586		7,364		(222		)	1,412		1,310		(102		)	8,998		8,674		(324		)
Foreign govt./govt. agencies	552		537		(15		)	95		90		(5		)	647		627		(20		)
Municipal	2,206		2,151		(55		)	266		245		(21		)	2,472		2,396		(76		)
RMBS	1,795		1,751		(44		)	184		176		(8		)	1,979		1,927		(52		)
U.S. Treasuries	1,024		1,001		(23		)	402		382		(20		)	1,426		1,383		(43		)
Total fixed maturities, AFS in an unrealized loss position	$	16,755	$	16,348	$	(407	)	$	3,183	$	2,983	$	(200	)	$	19,938	$	19,331	$	(607	)

Unrealized Loss Aging for AFS Securities by Type and Length of Time as of December 31, 2017
	Less Than 12 Months							12 Months or More							Total
	Amortized Cost		Fair Value		Unrealized Losses			Amortized Cost		Fair Value		Unrealized Losses			Amortized Cost		Fair Value		Unrealized Losses
ABS	$	461	$	460	$	(1	)	$	30	$	29	$	(1	)	$	491	$	489	$	(2	)
CLOs	359		359		—			1		1		—			360		360		—
CMBS	1,178		1,167		(11		)	243		228		(15		)	1,421		1,395		(26		)
Corporate	2,322		2,302		(20		)	1,064		1,028		(36		)	3,386		3,330		(56		)
Foreign govt./govt. agencies	244		242		(2		)	51		49		(2		)	295		291		(4		)
Municipal	511		507		(4		)	236		228		(8		)	747		735		(12		)
RMBS	889		887		(2		)	137		135		(2		)	1,026		1,022		(4		)
U.S. Treasuries	658		652		(6		)	254		250		(4		)	912		902		(10		)
Total fixed maturities, AFS	6,622		6,576		(46		)	2,016		1,948		(68		)	8,638		8,524		(114		)
Equity securities, AFS [1]	176		163		(13		)	24		21		(3		)	200		184		(16		)
Total securities in an unrealized loss position	$	6,798	$	6,739	$	(59	)	$	2,040	$	1,969	$	(71	)	$	8,838	$	8,708	$	(130	)

[1]Effective January 1, 2018, with the adoption of new accounting guidance for financial instruments, equity securities, AFS were reclassified to equity securities at fair value and are excluded from the table above as of September 30, 2018.

As of September 30, 2018, AFS securities in an unrealized loss position consisted of 2,926 securities, primarily in the corporate and commercial real estate sectors, which were depressed primarily due to an increase in interest rates and/or widening of credit spreads since the securities were purchased. As of September 30, 2018, 99% of these securities were depressed less than 20% of cost or amortized cost. The increase in unrealized losses during the nine months endedSeptember 30, 2018 was primarily attributable to higher interest rates and wider credit spreads.

Most of the securities depressed for twelve months or more relate to corporate securities, structured securities with exposure to commercial real estate, and municipal bonds. Corporate securities and commercial real estate securities were primarily

depressed because current market spreads are wider and interest rates are higher than at the securities' respective purchase dates. Certain municipal bonds were depressed because the securities have long-dated maturities and interest rates have increased since their purchase. The Company neither has an intention to sell nor does it expect to be required to sell the securities outlined in the preceding discussion.

Mortgage Loans

Mortgage Loan Valuation Allowances

Mortgage loans are considered to be impaired when management estimates that, based upon current information and events, it is probable that the Company will be unable to collect amounts due

34

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

6. Investments (continued)

according to the contractual terms of the loan agreement. The Company reviews mortgage loans on a quarterly basis to identify potential credit losses. Among other factors, management reviews current and projected macroeconomic trends, such as unemployment rates and property-specific factors such as rental rates, occupancy levels, LTV ratios and debt service coverage ratios (“DSCR”). In addition, the Company considers historical, current and projected delinquency rates and property values. Estimates of collectibility require the use of significant management judgment and include the probability and timing of borrower default and loss severity estimates. In addition, cash flow projections may change based upon new information about the borrower's ability to pay and/or the value of underlying collateral such as changes in projected property value estimates.

For mortgage loans that are deemed impaired, a valuation allowance is established for the difference between the carrying amount and estimated fair value. The mortgage loan's estimated fair value is most frequently the Company's share of the fair value of the collateral but may also be the Company’s share of either (a) the present value of the expected future cash flows discounted at the loan’s effective interest rate or (b) the loan’s observable market price. A valuation allowance may be recorded for an individual loan or for a group of loans that have an LTV ratio of 90% or greater, a low DSCR or have other lower credit quality characteristics. Changes in valuation allowances are recorded in net realized capital gains and losses. Interest income on impaired loans is accrued to the extent it is deemed collectible and the borrowers continue to make payments under the original or restructured loan terms. The Company stops accruing interest income on loans when it is probable that the Company will not receive interest and principal payments according to the contractual terms of the loan agreement. The Company resumes accruing interest income when it determines that sufficient collateral exists to satisfy the full amount of the loan principal and interest payments and when it is probable cash will be received in the foreseeable future. Interest income on defaulted loans is recognized when received.

As of September 30, 2018 and December 31, 2017, mortgage loans had an amortized cost and carrying value of $3.6 billion and $3.2 billion, respectively, with a valuation allowance of $1 for both periods.

As of both September 30, 2018 and December 31, 2017, the carrying value of mortgage loans that had a valuation allowance was $24. There were no mortgage loans held-for-sale as of September 30, 2018 or December 31, 2017. As of September 30, 2018, the Company had no mortgage loans that have had extensions or restructurings other than what is allowable under the original terms of the contract.

The following table presents the activity within the Company’s valuation allowance for mortgage loans. These loans have been evaluated both individually and collectively for impairment. Loans evaluated collectively for impairment are immaterial.

Valuation Allowance Activity
	2018			2017
Balance, as of January 1	$	(1	)	$	—
Reversals/(Additions)	—			(1		)
Deductions	—			1
Balance, as of September 30	$	(1	)	$	—

The weighted-average LTV ratio of the Company’s mortgage loan portfolio was 53% as of September 30, 2018, while the weighted-average LTV ratio at origination of these loans was 61%. LTV ratios compare the loan amount to the value of the underlying property collateralizing the loan. The loan collateral values are updated no less than annually through reviews of the underlying properties. Factors considered in estimating property values include, among other things, actual and expected property cash flows, geographic market data and the ratio of the property's net operating income to its value. DSCR compares a property’s net operating income to the borrower’s principal and interest payments. As of September 30, 2018 and December 31, 2017, the Company held no delinquent mortgage loans past due by 90 days or more.

Mortgage Loans Credit Quality
	September 30, 2018			December 31, 2017
Loan-to-value	Carrying Value		Avg. Debt-Service Coverage Ratio	Carrying Value		Avg. Debt-Service Coverage Ratio
Greater than 80%	$	—	—	$	18	1.27x
65% - 80%	406		1.68x	265		1.95x
Less than 65%	3,153		2.60x	2,892		2.76x
Total mortgage loans	$	3,559	2.50x	$	3,175	2.69x

Mortgage Loans by Region
	September 30, 2018				December 31, 2017
	Carrying Value		Percent of Total		Carrying Value		Percent of Total
East North Central	$	250	7.0	%	$	251	7.9	%
Middle Atlantic	271		7.6	%	272		8.6	%
Mountain	31		0.9	%	31		1.0	%
New England	290		8.2	%	293		9.2	%
Pacific	870		24.4	%	760		23.9	%
South Atlantic	713		20.0	%	710		22.4	%
West North Central	148		4.2	%	149		4.7	%
West South Central	421		11.8	%	278		8.7	%
Other [1]	565		15.9	%	431		13.6	%
Total mortgage loans	$	3,559	100.0	%	$	3,175	100.0	%

[1] Primarily represents loans collateralized by multiple properties in various regions.

35

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

6. Investments (continued)

Mortgage Loans by Property Type
	September 30, 2018				December 31, 2017
	Carrying Value		Percent of Total		Carrying Value		Percent of Total
Commercial
Industrial	$	1,018	28.6	%	$	817	25.7	%
Multifamily	1,083		30.4	%	1,006		31.7	%
Office	760		21.4	%	751		23.7	%
Retail	373		10.5	%	367		11.5	%
Single Family	82		2.3	%	—		—	%
Other	243		6.8	%	234		7.4	%
Total mortgage loans	$	3,559	100.0	%	$	3,175	100.0	%

Mortgage Servicing

The Company originates, sells and services commercial mortgage loans on behalf of third parties and recognizes servicing fee income over the period that services are performed. As of September 30, 2018, under this program, the Company serviced commercial mortgage loans with a total outstanding principal of $5.9 billion, of which $3.6 billion was serviced on behalf of third parties and $2.3 billion was retained and reported in total investments on the Company's Condensed Consolidated Balance Sheets . As of December 31, 2017, the Company serviced commercial mortgage loans with a total outstanding principal balance of $1.3 billion, of which $402 was serviced on behalf of third parties, $566 was retained and reported in total investments and $356 was reported in assets held for sale on the Company's Consolidated Balance Sheets. Servicing rights are carried at the lower of cost or fair value and were zero as of September 30, 2018 and December 31, 2017, because servicing fees were market-level fees at origination and remain adequate to compensate the Company for servicing the loans.

Variable Interest Entities

The Company is engaged with various special purpose entities and other entities that are deemed to be VIEs primarily as an investor through normal investment activities but also as an investment manager.

A VIE is an entity that either has investors that lack certain essential characteristics of a controlling financial interest, such as simple majority kick-out rights, or lacks sufficient funds to finance its own activities without financial support provided by other entities. The Company performs ongoing qualitative assessments of its VIEs to determine whether the Company has a controlling financial interest in the VIE and therefore is the primary beneficiary. The Company is deemed to have a controlling financial interest when it has both the ability to direct the activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. Based on the Company’s assessment, if it determines it is the primary beneficiary, the Company

consolidates the VIE in the Company’s Condensed Consolidated Financial Statements.

Consolidated VIEs

As of September 30, 2018 and December 31, 2017, the Company did not hold any securities for which it is the primary beneficiary.

Non-Consolidated VIEs

The Company, through normal investment activities, makes passive investments in limited partnerships and other alternative investments. For these non-consolidated VIEs, the Company has determined it is not the primary beneficiary as it has no ability to direct activities that could significantly affect the economic performance of the investments. The Company’s maximum exposure to loss as of September 30, 2018 and December 31, 2017 was limited to the total carrying value of $1.0 billion and $920, respectively, which are included in limited partnerships and other alternative investments in the Company's Condensed Consolidated Balance Sheets. As of September 30, 2018 and December 31, 2017, the Company has outstanding commitments totaling $689 and $787, respectively, whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses. These investments are generally of a passive nature in that the Company does not take an active role in management. For further discussion of these investments, see Equity Method Investments within Note 6 - Investments of Notes to Consolidated Financial Statements included in the Company’s 2017 Form 10-K Annual Report.

In addition, the Company also makes passive investments in structured securities issued by VIEs for which the Company is not the manager. These investments are included in ABS, CDOs, CMBS and RMBS in the Available-for-Sale Securities table and fixed maturities, AFS and FVO, in the Company’s Condensed Consolidated Balance Sheets. The Company has not provided financial or other support with respect to these investments other than its original investment. For these investments, the Company determined it is not the primary beneficiary due to the relative size of the Company’s investment in comparison to the principal amount of the structured securities issued by the VIEs, the level of credit subordination which reduces the Company’s obligation to absorb losses or right to receive benefits and the Company’s inability to direct the activities that most significantly impact the economic performance of the VIEs. The Company’s maximum exposure to loss on these investments is limited to the amount of the Company’s investment.

Securities Lending, Repurchase Agreements and Other Collateral Transactions

The Company enters into securities financing transactions as a way to earn additional income or manage liquidity, primarily through securities lending and repurchase agreements.

36

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

6. Investments (continued)

Securities Lending

Under a securities lending program, the Company lends certain fixed maturities within the corporate, foreign government/government agencies, and municipal sectors as well as equity securities to qualifying third-party borrowers in return for collateral in the form of cash or securities. For domestic and non-domestic loaned securities, respectively, borrowers provide collateral of 102% and 105% of the fair value of the securities lent at the time of the loan. Borrowers will return the securities to the Company for cash or securities collateral at maturity dates generally of 90 days or less. Security collateral on deposit from counterparties in connection with securities lending transactions may not be sold or re-pledged, except in the event of default by the counterparty, and is not reflected on the Company’s Condensed Consolidated Balance Sheets. Additional collateral is obtained if the fair value of the collateral falls below 100% of the fair value of the loaned securities. The agreements provide the counterparty the right to sell or re-pledge the securities loaned. If cash, rather than securities, is received as collateral, the cash is typically invested in short-term investments or fixed maturities and is reported as an asset on the Company's Condensed Consolidated Balance Sheets. Income associated with securities lending transactions is reported as a component of net investment income in the Company’s Condensed Consolidated Statements of Operations.

Repurchase Agreements

From time to time, the Company enters into repurchase agreements to manage liquidity or to earn incremental income. A repurchase agreement is a transaction in which one party (transferor) agrees to sell securities to another party (transferee) in return for cash (or securities), with a simultaneous agreement to repurchase the same securities at a specified price at a later date. These transactions generally have a contractual maturity of ninety days or less. Repurchase agreements include master netting provisions that provide both counterparties the right to offset claims and apply securities held by them with respect to their obligations in the event of a default. Although the Company has the contractual right to offset claims, the Company's current positions do not meet the specific conditions for net presentation.

Under repurchase agreements, the Company transfers collateral of U.S. government and government agency securities and receives cash. For repurchase agreements, the Company obtains cash in an amount equal to at least 95% of the fair value of the securities transferred. The agreements require additional collateral to be transferred when necessary and provide the counterparty the right to sell or re-pledge the securities transferred. The cash received from the repurchase program is typically invested in short-term investments or fixed maturities and is reported as an asset on the Company's Condensed Consolidated Balance Sheets. The Company accounts for the repurchase agreements as collateralized borrowings. The securities transferred under repurchase agreements are included in fixed maturities, AFS with the obligation to repurchase those securities recorded in other liabilities on the Company's Condensed Consolidated Balance Sheets.

From time to time, the Company enters into reverse repurchase agreements where the Company purchases securities and

simultaneously agrees to resell the same or substantially the same securities. The agreements require additional collateral to be transferred to the Company when necessary and the Company has the right to sell or re-pledge the securities received. The Company accounts for reverse repurchase agreements as collateralized financing. The receivable for reverse repurchase agreements is included within short term investments in the Company's Condensed Consolidated Balance Sheets.

Securities Lending and Repurchase Agreements
	September 30, 2018		December 31, 2017
	Fair Value		Fair Value
Securities Lending Transactions:
Gross amount of securities on loan	$	697	$	922
Gross amount of associated liability for collateral received [1]	$	714	$	945
Repurchase agreements:
Gross amount of recognized liabilities for repurchase agreements	$	167	$	174
Gross amount of collateral pledged related to repurchase agreements [2]	$	168	$	176
Gross amount of recognized receivables for reverse repurchase agreements	$	36	$	—

[1] Cash collateral received is reinvested in fixed maturities, AFS and short term investments and is included in the Condensed Consolidated Balance Sheets. Amount includes additional securities collateral received of $2 and $0 million which are excluded from the Company's Condensed Consolidated Balance Sheets as of September 30, 2018 and December 31, 2017, respectively.

[2] Collateral pledged is included within fixed maturities, AFS and short term investments in the Company's Condensed Consolidated Balance Sheets.

Other Collateral Transactions

The Company is required by law to deposit securities with government agencies in certain states in which it conducts business. As of September 30, 2018 and December 31, 2017, the fair value of securities on deposit were $2.5 billion .

As of September 30, 2018 and December 31, 2017, the Company pledged collateral of $46 and $104, respectively, of U.S. government securities and government agency securities or cash primarily related to certain bank loan participations committed to through a limited partnership agreement. These amounts also include collateral related to letters of credit.

For disclosure of collateral in support of derivative transactions, refer to the Derivative Collateral Arrangements section of Note 7 - Derivative Instruments of Notes to Condensed Consolidated Financial Statements.

37

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

7. Derivative Instruments

The Company utilizes a variety of OTC, OTC-cleared and exchange traded derivative instruments as a part of its overall risk management strategy as well as to enter into replication transactions. Derivative instruments are used to manage risk associated with interest rate, equity market, credit spread, issuer default, price, and currency exchange rate risk or volatility. Replication transactions are used as an economical means to synthetically replicate the characteristics and performance of assets that are permissible investments under the Company’s investment policies.

Strategies that Qualify for Hedge Accounting

Some of the Company's derivatives satisfy hedge accounting requirements as outlined in Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements, included in The Hartford’s 2017 Form 10-K Annual Report. Typically, these hedging instruments include interest rate swaps and, to a lesser extent, foreign currency swaps where the terms or expected cash flows of the hedged item closely match the terms of the swap. The interest rate swaps are typically used to manage interest rate duration of certain fixed maturity securities. The hedge strategies by hedge accounting designation include:

Cash Flow Hedges

Interest rate swaps are predominantly used to manage portfolio duration and better match cash receipts from assets with cash disbursements required to fund liabilities. These derivatives primarily convert interest receipts on floating-rate fixed maturity securities to fixed rates. The Company has also entered into interest rate swaps to convert the variable interest payments on the 3 month Libor + 2.125% junior subordinated debt to fixed interest payments. For further information, see the Junior Subordinated Debentures section within Note 13 - Debt of Notes to the Consolidated Financial Statements, included in The Hartford's 2017 Form 10-K Annual Report.

Foreign currency swaps are used to convert foreign currency-denominated cash flows related to certain investment receipts to U.S. dollars in order to reduce cash flow fluctuations due to changes in currency rates.

The Company also previously entered into forward starting swap agreements to hedge the interest rate exposure related to the future purchase of fixed-rate securities, primarily to hedge interest rate risk inherent in the assumptions used to price certain group benefits liabilities.

Non-qualifying Strategies

Derivative relationships that do not qualify for hedge accounting (“non-qualifying strategies”) primarily include hedging and replication strategies that utilize credit default swaps. In addition, hedges of interest rate, foreign currency and equity risk of certain fixed maturities and equities do not qualify for hedge accounting. The non-qualifying strategies include:

Credit Contracts

Credit default swaps are used to purchase credit protection on an individual entity or referenced index to economically hedge against default risk and credit-related changes in the value of fixed maturity securities. Credit default swaps are also used to assume credit risk related to an individual entity or referenced index as a part of replication transactions. These contracts require the Company to pay or receive a periodic fee in exchange for compensation from the counterparty should the referenced security issuers experience a credit event, as defined in the contract. The Company also enters into credit default swaps to terminate existing credit default swaps, thereby offsetting the changes in value of the original swap going forward.

Interest Rate Swaps, Swaptions and Futures

The Company uses interest rate swaps, swaptions and futures to manage interest rate duration between assets and liabilities in certain investment portfolios. In addition, the Company enters into interest rate swaps to terminate existing swaps, thereby offsetting the changes in value of the original swap going forward. As of September 30, 2018 and December 31, 2017, the notional amount of interest rate swaps in offsetting relationships was $7.1 billion and $7.3 billion, respectively.

Foreign Currency Swaps and Forwards

The Company enters into foreign currency swaps to convert the foreign currency exposures of certain foreign currency-denominated fixed maturity investments to U.S. dollars. The Company may at times enter into foreign currency forwards to hedge non-U.S. dollar denominated cash and, previously, equity securities. The Company previously entered into foreign currency forwards to hedge currency impacts on changes in equity of the U.K. property and casualty run-off subsidiaries that were sold in May 2017. For further information on the disposition, see Note 2 - Business Acquisitions of Notes to Consolidated Financial Statements, included in The Hartford's 2017 Form 10-K Annual Report.

Equity Index Options

The Company enters into equity index options to hedge the impact of a decline in the equity markets on the investment portfolio. The Company also enters into call options on equity securities to generate additional return.

Derivative Balance Sheet Classification

For reporting purposes, the Company has elected to offset within assets or liabilities based upon the net of the fair value amounts, income accruals, and related cash collateral receivables and payables of OTC derivative instruments executed in a legal entity and with the same counterparty under a master netting agreement, which provides the Company with the legal right of offset. The following fair value amounts do not include income accruals or related cash collateral receivables and payables, which are netted with derivative fair value amounts to determine balance sheet presentation. The Company’s derivative

38

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

7. Derivative Instruments (continued)

instruments are held for risk management purposes, unless otherwise noted in the following table. The notional amount of derivative contracts represents the basis upon which pay or receive amounts are calculated and is presented in the table to

quantify the volume of the Company’s derivative activity. Notional amounts are not necessarily reflective of credit risk.

Derivative Balance Sheet Presentation
	Net Derivatives										Asset Derivatives [1]				Liability Derivatives [1]
	Notional Amount				Fair Value						Fair Value				Fair Value
Hedge Designation/ Derivative Type	Sep. 30, 2018		Dec. 31, 2017		Sep. 30, 2018			Dec. 31, 2017			Sep. 30, 2018		Dec. 31, 2017		Sep. 30, 2018			Dec. 31, 2017
Cash flow hedges
Interest rate swaps	$	2,080	$	2,190	$	—		$	—		$	—	$	1	$	—		$	(1	)
Foreign currency swaps	153		153		(11		)	(13		)	1		—		(12		)	(13		)
Total cash flow hedges	2,233		2,343		(11		)	(13		)	1		1		(12		)	(14		)
Non-qualifying strategies
Interest rate contracts
Interest rate swaps and futures	8,111		7,986		(51		)	(83		)	3		7		(54		)	(90		)
Foreign exchange contracts
Foreign currency swaps and forwards	318		213		—			(1		)	1		—		(1		)	(1		)
Credit contracts
Credit derivatives that purchase credit protection	8		61		—			1			—		2		—			(1		)
Credit derivatives that assume credit risk [2]	923		823		14			3			15		3		(1		)	—
Credit derivatives in offsetting positions	46		1,046		—			2			6		11		(6		)	(9		)
Equity contracts
Equity index swaps and options	125		258		1			1			1		1		—			—
Total non-qualifying strategies	9,531		10,387		(36		)	(77		)	26		24		(62		)	(101		)
Total cash flow hedges and non-qualifying strategies	$	11,764	$	12,730	$	(47	)	$	(90	)	$	27	$	25	$	(74	)	$	(115	)
Balance Sheet Location
Fixed maturities, available-for-sale	$	153	$	153	$	—		$	—		$	—	$	—	$	—		$	—
Other investments	9,377		9,957		14			10			19		16		(5		)	(6		)
Other liabilities	2,234		2,620		(61		)	(100		)	8		9		(69		)	(109		)
Total derivatives	$	11,764	$	12,730	$	(47	)	$	(90	)	$	27	$	25	$	(74	)	$	(115	)

[1] Certain prior year amounts have been restated to conform to the current year presentation for OTC-cleared derivatives.

[2] The derivative instruments related to this strategy are held for other investment purposes.

Offsetting of Derivative Assets/Liabilities

The following tables present the gross fair value amounts, the amounts offset, and net position of derivative instruments eligible for offset in the Company's Condensed Consolidated Balance Sheets. Amounts offset include fair value amounts, income

accruals and related cash collateral receivables and payables associated with derivative instruments that are traded under a common master netting agreement, as described in the preceding discussion. Also included in the tables are financial collateral receivables and payables, which are contractually permitted to be offset upon an event of default, although are disallowed for offsetting under U.S. GAAP.

39

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

7. Derivative Instruments (continued)

Offsetting Derivative Assets and Liabilities
	(i)			(ii)			(iii) = (i) - (ii)						(iv)				(v) = (iii) - (iv)
							Net Amounts Presented in the Statement of Financial Position							Collateral Disallowed for Offset in the Statement of Financial Position
	Gross Amounts of Recognized Assets (Liabilities) [1]			Gross Amounts Offset in the Statement of Financial Position			Derivative Assets [2] (Liabilities) [3]			Accrued Interest and Cash Collateral (Received) [4] Pledged [3]				Financial Collateral (Received) Pledged [5]			Net Amount
As of September 30, 2018
Other investments	$	27		$	23		$	14		$	(10	)		$	2		$	2
Other liabilities	$	(74	)	$	(5	)	$	(61	)	$	(8	)		$	(61	)	$	(8	)
As of December 31, 2017
Other investments	$	25		$	22		$	10		$	(7	)		$	1		$	2
Other liabilities	$	(115	)	$	(10	)	$	(100	)	$	(5	)		$	(96	)	$	(9	)

[1] Certain prior year amounts have been restated to conform to the current year presentation for OTC-cleared derivatives.

[2] Included in other investments in the Company's Condensed Consolidated Balance Sheets.

[3] Included in other liabilities in the Company's Condensed Consolidated Balance Sheets and is limited to the net derivative payable associated with each counterparty.

[4] Included in other investments in the Company's Condensed Consolidated Balance Sheets and is limited to the net derivative receivable associated with each counterparty.

[5] Excludes collateral associated with exchange-traded derivative instruments.

Cash Flow Hedges

For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of OCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing hedge ineffectiveness are recognized in current period earnings. All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness.

Derivatives in Cash Flow Hedging Relationships
	Gain (Loss) Recognized in OCI on Derivative (Effective Portion)
	Three Months Ended September 30,					Nine Months Ended September 30,
	2018		2017			2018			2017
Interest rate swaps	$	—	$	2		$	(16	)	$	16
Foreign currency swaps	—		(4		)	1			(8		)
Total	$	—	$	(2	)	$	(15	)	$	8
	Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
	Three Months Ended September 30,					Nine Months Ended September 30,
	2018		2017			2018			2017
Interest rate swaps
Net realized capital gains	$	—	$	—		$	1		$	5
Net investment income	7		8			24			27
Total	$	7	$	8		$	25		$	32

During the three and nine months endedSeptember 30, 2018, and September 30, 2017, the Company had no ineffectiveness recognized in income within net realized capital gains (losses).

As of September 30, 2018, the before tax deferred net gains on derivative instruments recorded in AOCI that are expected to be reclassified to earnings during the next twelve months are $24. This expectation is based on the anticipated interest payments on

40

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

7. Derivative Instruments (continued)

hedged investments in fixed maturity securities that will occur over the next twelve months, at which time the Company will recognize the deferred net gains (losses) as an adjustment to net investment income over the term of the investment cash flows.

During the three and nine months endedSeptember 30, 2018, and September 30, 2017, the Company had no net reclassifications from AOCI to earnings resulting from the discontinuance of cash-flow hedges due to forecasted

transactions that were no longer probable of occurring.

Non-Qualifying Strategies

For non-qualifying strategies, including embedded derivatives that are required to be bifurcated from their host contracts and accounted for as derivatives, the gain or loss on the derivative is recognized currently in earnings within net realized capital gains (losses).

Non-Qualifying Strategies Recognized within Net Realized Capital Gains (Losses)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Foreign exchange contracts
Foreign currency swaps and forwards	$	1		$	—		$	2		$	(14	)
Other non-qualifying derivatives
Interest rate contracts
Interest rate swaps, swaptions, and futures	1			(4		)	7			(6		)
Credit contracts
Credit derivatives that purchase credit protection	—			8			—			26
Credit derivatives that assume credit risk	8			(2		)	—			(9		)
Equity contracts
Equity index swaps and options	(1		)	(3		)	(1		)	(3		)
Other
Contingent capital facility put option	—			—			—			(1		)
Total other non-qualifying derivatives	8			(1		)	6			7
Total [1]	$	9		$	(1	)	$	8		$	(7	)

[1] Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 5 - Fair Value Measurements.

Credit Risk Assumed through Credit Derivatives

The Company enters into credit default swaps that assume credit risk of a single entity or referenced index in order to synthetically replicate investment transactions that are permissible under the Company's investment policies. The Company will receive periodic payments based on an agreed upon rate and notional amount and will only make a payment if there is a credit event. A credit event payment will typically be equal to the notional value of the swap contract less the value of the referenced security

issuer’s debt obligation after the occurrence of the credit event. A credit event is generally defined as a default on contractually obligated interest or principal payments or bankruptcy of the referenced entity. The credit default swaps in which the Company assumes credit risk primarily reference investment grade single corporate issuers and baskets, which include standard diversified portfolios of corporate and CMBS issuers. The diversified portfolios of corporate issuers are established within sector concentration limits and may be divided into tranches that possess different credit ratings.

41

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

7. Derivative Instruments (continued)

Credit Risk Assumed Derivatives by Type
							Underlying Referenced Credit Obligation(s) [1]
	Notional Amount [2]		Fair Value			Weighted Average Years to Maturity	Type	Average Credit Rating	Offsetting Notional Amount [3]		Offsetting Fair Value [3]
As of September 30, 2018
Single name credit default swaps
Investment grade risk exposure	$	170	$	4		5 years	Corporate Credit/ Foreign Gov.	A-	$	—	$	—
Basket credit default swaps [4]
Investment grade risk exposure	743		10			6 years	Corporate Credit	BBB+	—		—
Investment grade risk exposure	12		—			5 years	CMBS Credit	A-	2		—
Below investment grade risk exposure	21		(6		)	Less than 1 year	CMBS Credit	CCC	21		6
Total [5]	$	946	$	8					$	23	$	6
As of December 31, 2017
Single name credit default swaps
Investment grade risk exposure	$	130	$	3		5 years	Corporate Credit/ Foreign Gov.	A-	$	—	$	—
Below investment grade risk exposure	9		—			Less than 1 year	Corporate Credit	B	9		—
Basket credit default swaps [4]
Investment grade risk exposure	1,137		2			3 years	Corporate Credit	BBB+	454		(2		)
Below investment grade risk exposure	27		2			3 years	Corporate Credit	B+	27		—
Investment grade risk exposure	13		(1		)	5 years	CMBS Credit	A	3		—
Below investment grade risk exposure	30		(6		)	Less than 1 year	CMBS Credit	CCC	30		7
Total [5]	$	1,346	$	—					$	523	$	5

[1] The average credit ratings are based on availability and are generally the midpoint of the available ratings among Moody’s, S&P, Fitch and Morningstar. If no rating is available from a rating agency, then an internally developed rating is used.

[2] Notional amount is equal to the maximum potential future loss amount. These derivatives are governed by agreements and applicable law, which include collateral posting requirements. There is no additional specific collateral related to these contracts or recourse provisions included in the contracts to offset losses.

[3] The Company has entered into offsetting credit default swaps to terminate certain existing credit default swaps, thereby offsetting the future changes in value of, or losses paid related to, the original swap.

[4] Comprised of swaps of standard market indices of diversified portfolios of corporate and CMBS issuers referenced through credit default swaps. These swaps are subsequently valued based upon the observable standard market index.

[5] Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 5 - Fair Value Measurements.

Derivative Collateral Arrangements

The Company enters into various collateral arrangements in connection with its derivative instruments, which require both the pledging and accepting of collateral. As of September 30, 2018 and December 31, 2017, the Company pledged cash collateral with a fair value of $1 associated with derivative instruments. The collateral receivable has been recorded in other assets or other liabilities on the Company's Condensed Consolidated Balance Sheets as determined by the Company's election to offset on the balance sheet. As of September 30, 2018 and December 31, 2017, the Company also pledged securities collateral associated with derivative instruments with a fair value of $68 and $101, respectively, which have been included in fixed

maturities on the Condensed Consolidated Balance Sheets. In addition, as of September 30, 2018 and December 31, 2017, the Company has also pledged initial margin of securities related to OTC-cleared and exchange traded derivatives with a fair value of $99 and $96, respectively, which are included within fixed maturities on the Company's Condensed Consolidated Balance Sheets. The counterparties generally have the right to sell or re-pledge these securities.

As of September 30, 2018 and December 31, 2017, the Company accepted cash collateral associated with derivative instruments of $13 and $11, respectively, which was invested and recorded in the Company's Condensed Consolidated Balance Sheets in fixed maturities and short-term investments with corresponding amounts recorded in other investments or other liabilities as determined by the Company's election to offset on the balance

42

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

7. Derivative Instruments (continued)

sheet. The Company also accepted securities collateral as of September 30, 2018 and December 31, 2017, with a fair value of $2, none of which the Company has the ability to sell or repledge. As of September 30, 2018 and December 31, 2017, the Company had no repledged securities and did not sell any securities held as collateral. In addition, as of September 30, 2018 and December 31, 2017, non-cash collateral accepted was held in separate custodial accounts and was not included in the Company’s Consolidated Balance Sheets.

43

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

8. Other Intangible Assets

On February 16, 2018, The Company entered into a renewal rights agreement with Farmers Exchanges of the Farmers Group of Companies to acquire its Foremost-branded small commercial business sold through independent agents. In connection with the renewal rights agreement, the Company recorded a customer relationships intangible asset of $46 which will be amortized over 10 years.

44

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

9. Reserve for Unpaid Losses and Loss Adjustment Expenses

Property and Casualty Insurance Products

Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses

	For the nine months ended September 30,
	2018			2017
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	$	23,775		$	22,545
Reinsurance and other recoverables	3,957			3,488
Beginning liabilities for unpaid losses and loss adjustment expenses, net	19,818			19,057
Provision for unpaid losses and loss adjustment expenses
Current accident year	5,151			5,587
Prior accident year development	(139		)	1
Total provision for unpaid losses and loss adjustment expenses	5,012			5,588
Less payments
Current accident year	1,647			1,770
Prior accident years	3,166			3,143
Total payments	4,813			4,913
Ending liabilities for unpaid losses and loss adjustment expenses, net	20,017			19,732
Reinsurance and other recoverables	3,780			3,508
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	23,797		$	23,240

Unfavorable (Favorable) Prior Accident Year Development

	For the nine months ended September 30,
	2018			2017
Workers’ compensation	$	(97	)	$	(29	)
Workers’ compensation discount accretion	30			21
General liability	32			10
Package business	(16		)	(22		)
Commercial property	(10		)	(5		)
Professional liability	(12		)	—
Bond	—			10
Automobile liability - Commercial Lines	(15		)	20
Automobile liability - Personal Lines	(10		)	—
Homeowners	(20		)	—
Net asbestos reserves	—			—
Net environmental reserves	—			—
Catastrophes	(47		)	(12		)
Uncollectible reinsurance	22			—
Other reserve re-estimates, net	4			8
Total prior accident year development	$	(139	)	$	1

Re-estimates of prior accident year reserves for the nine months endedSeptember 30, 2018

Workers’ compensation reserveswere reduced in small commercial and middle market, primarily for accident years 2012 to 2015, as both claim frequency and medical claim severity have emerged favorably compared to previous reserve estimates.

General liability reserveswere increased, primarily due to an increase in reserves for higher hazard general liability exposures in middle market for accident years 2009 to 2017, partially offset by a decrease in reserves for other lines within middle market, including premises and operations, umbrella and products liability, principally for accident years 2015 and prior. Contributing to the increase in reserves for higher hazard general liability exposures was an increase in large losses and, in more recent accident years, an increase in claim frequency. Contributing to the reduction in reserves for other middle market lines were more favorable outcomes due to initiatives to reduce legal expenses. In addition, reserve increases for claims with lead paint exposure were offset by reserve decreases for other mass torts and extra-contractual liability claims.

Package business reserveswere reduced, primarily due to lower reserve estimates for both liability and property for accident years 2010 and prior, including a recovery of loss adjustment expenses for the 2005 accident year.

Commercial property reserves were reduced, driven by an increase in estimated reinsurance recoverables on middle market property losses from the 2017 accident year.

45

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

9. Reserve for Unpaid Losses and Loss Adjustment Expenses (continued)

Professional liability reserves were reduced, principally for accident years 2014 and prior, for directors and officers liability claims principally due to a number of older claims closing with limited or no payment.

Automobile liability reserveswere reduced, primarily driven by reduced estimates of loss adjustment expenses in small commercial for recent accident years and favorable development in personal automobile liability for accident years 2014 to 2017, principally due to lower severity, including with uninsured and underinsured motorist claims.

Homeowners reserveswere reduced, primarily in accident years 2013 to 2017, driven by lower than expected severity across multiple perils.

Catastrophes reserves were reduced, primarily as a result of lower estimated net losses from 2017 catastrophes, principally related to hurricanes Harvey and Irma. Before reinsurance, estimated losses for 2017 catastrophe events decreased by $133 in the nine months ended September 30, 2018, resulting in a decrease in reinsurance recoverables of $90 as the Company no longer expects to recover under the 2017 Property Aggregate reinsurance treaty as aggregate ultimate losses for 2017 catastrophe events are now projected to be less than $850.

Uncollectible reinsurance reserves were increased due to lower anticipated recoveries related to older accident years.

Re-estimates of prior accident year reserves for thenine months endedSeptember 30, 2017

Workers’ compensation reserves were reduced, primarily in small commercial, given the continued emergence of

favorable frequency for accident years 2013 to 2015. Management has placed additional weight on this favorable experience as it becomes more credible.

General liability reserves were increased for the 2013 to 2016 accident years on a class of business that insures service and maintenance contractors. This increase was partially offset by a decrease in recent accident year reserves for other middle market general liability reserves.

Package reserveswere reduced for accident years 2013 and prior largely due to reducing the Company's estimate of allocated loss adjustment expenses incurred to settle the claims.

Bond business reservesincreased for customs bonds written between 2000 and 2010 which was partly offset by a reduction in reserves for recent accident years as reported losses for commercial and contract surety have emerged favorably.

Automobile liability reserves within Commercial Lines were increased in small commercial and large national accounts for the 2013 to 2016 accident years, driven by higher frequency of more severe accidents, including litigated claims.

Catastrophes reserves were reduced primarily due to lower estimates of 2016 wind and hail event losses and a decrease in losses on a 2015 wildfire.

46

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

9. Reserve for Unpaid Losses and Loss Adjustment Expenses (continued)

Group Life, Disability and Accident Products

Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses

	For the nine months ended September 30,
	2018			2017
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	$	8,512		$	5,772
Reinsurance recoverables	209			208
Beginning liabilities for unpaid losses and loss adjustment expenses, net	8,303			5,564
Add: Aetna U.S. group life and disability business acquisition [1]	42			—
Provision for unpaid losses and loss adjustment expenses
Current incurral year	3,423			1,960
Prior year's discount accretion	175			148
Prior incurral year development [2]	(284		)	(162		)
Total provision for unpaid losses and loss adjustment expenses [3]	3,314			1,946
Less: payments
Current incurral year	1,659			917
Prior incurral years	1,741			1,118
Total payments	3,400			2,035
Ending liabilities for unpaid losses and loss adjustment expenses, net	8,259			5,475
Reinsurance recoverables	241			208
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	8,500		$	5,683

[1] Represents an adjustment to Aetna U.S. group life and disability business reserves, net of reinsurance as of the acquisition date, upon finalization of the opening balance sheet.

[2] Prior incurral year development represents the change in estimated ultimate incurred losses and loss adjustment expenses for prior incurral years on a discounted basis.

[3] Includes unallocated loss adjustment expenses of $131, and $74 for the nine months endedSeptember 30, 2018 and 2017, respectively, that are recorded in insurance operating costs and other expenses in the Condensed Consolidated Statements of Operations.

Re-estimates of prior incurral years reserves for the nine months endedSeptember 30, 2018

Group disability-Prior period reserve estimates decreased by approximately $195 largely driven by group long-term disability claim recoveries higher than prior reserve assumptions and claim incidence lower than prior assumptions.  Short-term disability has also experienced favorable claim recoveries.

Group life and accident (including group life premium waiver)-Prior period reserve estimates decreased by approximately $85 largely driven by lower-than-previously expected claim incidence inclusive of group life, group life premium waiver, and group accidental death & dismemberment.

Re-estimates of prior incurral years reserves for the nine months endedSeptember 30, 2017

Group disability-Prior period reserve estimates decreased by approximately $105 largely driven by group long-term disability claim recoveries higher than prior reserve assumptions. This favorability was partially reduced by lower expectation of future benefit offsets, particularly lower Social Security disability

income approval rates and longer decision turnaround times in the Social Security Administration.

Group life and accident (including group life premium waiver)-Prior period reserve estimates decreased by approximately $55 largely driven by lower than previously expected claim incidence in group life and group life premium waiver and lower than expected severity on group accidental death & dismemberment.

47

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

10. Reserve for Future Policy Benefits

Changes in Reserves for Future Policy Benefits[1]
Liability balance as of January 1, 2018	$	713
Incurred	10
Paid	(25		)
Change in unrealized investment gains and losses	(42		)
Liability balance as of September 30, 2018	$	656
Reinsurance recoverable asset, as of January 1, 2018	$	26
Incurred	10
Paid	(1		)
Reinsurance recoverable asset, as of September 30, 2018	$	35

Liability balance as of January 1, 2017	$	322
Incurred	27
Paid	(24		)
Change in unrealized investment gains and losses	(9		)
Liability balance as of September 30, 2017	$	316
Reinsurance recoverable asset, as of January 1, 2017	$	28
Incurred	(6		)
Paid	—
Reinsurance recoverable asset, as of September 30, 2017	$	22

[1]Reserves for future policy benefits includes paid-up life insurance and whole-life policies resulting from conversion from group life policies included within the Group Benefits segment and reserves for run-off structured settlement and terminal funding agreement liabilities which are in the Corporate category.

48

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

11. Debt

Senior Notes

On March 15, 2018, The Hartford issued $500 of 4.4% senior notes ("4.4% Notes") due March 15, 2048 for net proceeds of approximately $490, after deducting underwriting discounts and expenses from the offering. Interest is payable semi-annually in arrears on March 15 and September 15, commencing September 15, 2018. The Hartford, at its option, can redeem the 4.4% Notes at any time, in whole or in part, at a redemption price equal to the greater of 100% of the principal amount being redeemed or a make-whole amount based on a comparable maturity US Treasury plus 25 basis points, plus any accrued and unpaid interest, except the option of a make-whole payment is not applicable within the final six months before maturity.

On March 15, 2018, The Hartford repaid at maturity the $320 principal amount of its 6.3% senior notes.

Junior Subordinated Debentures

On June 15, 2018, The Hartford redeemed $500 aggregate principal amount of its 8.125% Fixed-to-Floating Rate Junior Subordinated Debentures due 2068. During the initial offering of the 8.125% debentures, the Company entered into a replacement capital covenant ("RCC"), and under the terms of the RCC, if the Company redeemed the 8.125% debentures at any time prior to June 15, 2048 it could only do so with the proceeds from the sale of certain qualifying replacement securities. The 3 month Libor plus 2.125% debentures issued February 15, 2017 are qualifying replacement securities within the definition of RCC. In connection with this redemption, the Company recognized a $6 loss on extinguishment of debt for unamortized deferred debt issuance costs.

Revolving Credit Facility

On March 29, 2018, the Company entered into an amendment to its Five-Year Credit Agreement dated October 31, 2014. The Amendment reset the level of the Company's minimum consolidated net worth financial covenant to $9 billion excluding AOCI from its former $13.5 billion (where net worth was defined as stockholders' equity excluding AOCI and including junior subordinated debt), among other updates. Among other changes, under an amended and restated credit agreement that became effective in June 2018 after the closing of the sale of the Company's life and annuity run-off business, the aggregate amount of principal of the credit facility decreased from $1 billion to $750, including a reduction to the amount available for letters of credit from $250 to $100, the maturity date was extended to March 29, 2023, and the liens covenant and certain other covenants were modified.

Revolving loans from the Credit Facility may be in multiple currencies. U.S. dollar loans will bear interest at a floating rate equivalent to an indexed rate depending on the type of borrowing and a basis point spread based on The Hartford's credit rating and will mature no later than March 29, 2023. Letters of credit issued from the Credit Facility bear a fee based on The Hartford's credit rating and expire no later than March 29, 2024. The Credit Facility requires the Company to maintain a minimum consolidated net worth excluding AOCI of $9 billion, limit the ratio of senior debt to capitalization, excluding AOCI, at 35% and meet other customary covenants. The Credit Facility is for general corporate purposes.

As of September 30, 2018, no borrowings were outstanding and

$3 in letters of credit were issued under the Credit Facility and the Company was in compliance with all financial covenants.

Commercial Paper

As of September 30, 2018, the Hartford's maximum borrowings available under its commercial paper program was $750 and there was no commercial paper outstanding. The Company is dependent upon market conditions to access short-term financing through the issuance of commercial paper to investors. On July 19, 2018, the Board of Directors revised the Company's commercial paper issuance authorization from $1 billion to $750 to align the program with the Company's $750 five year revolving credit facility which became effective on June 11, 2018.

Collateralized Advances with Federal Home Loan Bank of Boston

In August 2018, the Company’s subsidiaries, Hartford Fire Insurance Company (“Hartford Fire”) and Hartford Life and Accident Insurance Company (“HLA”), became members of the Federal Home Loan Bank of Boston (“FHLBB”). Membership allows these subsidiaries access to collateralized advances, which may be short- or long-term with fixed or variable rates. FHLBB membership required the purchase of member stock and requires additional member stock ownership of 3% or 4% of any amount borrowed. Acceptable forms of collateral include real estate backed fixed maturities and mortgage loans and the amount of advances that can be taken is limited to a percentage of the fair value of the assets that ranges from a high of 97% for US government-backed fixed maturities maturing within 3 years to a low of 40% for A-rated commercial mortgage-backed fixed maturities maturing in 5 years or more. In its consolidated balance sheets, The Hartford would present the liability for advances taken based on use of the funds with advances for general corporate purposes presented in short- or long-term debt and advances to earn incremental investment income presented in other liabilities, consistent with other collateralized financing transactions such as securities lending and repurchase agreements. The Connecticut Department of Insurance (“CTDOI”) permits Hartford Fire and HLA to pledge up to $1.3 billion and $0.5 billion in qualifying assets, respectively, without prior approval, to secure FHLBB advances in 2018. The pledge limit is determined annually based on statutory admitted assets and capital and surplus of Hartford Fire and HLA, respectively. As of September 30, 2018, there were no advances outstanding under the FHLBB facility.

49

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

12. Income Taxes

Income Tax Rate Reconciliation
	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Tax provision at U.S. federal statutory rate [1]	$	112		$	64		$	333		$	105
Tax-exempt interest	(16		)	(31		)	(50		)	(91		)
Executive compensation	1			—			8			—
Stock-based compensation	(3		)	(4		)	(5		)	(12		)
Tax Reform	11			—			13			—
Other	(2		)	7			(2		)	3
Provision for income taxes	$	103		$	36		$	297		$	5

[1]Due to the passage of Tax Reform on December 22, 2017, current and prior period federal statutory rates are reflected at 21% and 35% respectively.

Rollforward of Unrecognized Tax Benefits
	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Balance, beginning of period	$	9	$	12	$	9	$	12
Gross increases - tax positions in prior period	5		—		5		—
Gross decreases - tax positions in prior period	—		—		—		—
Balance, end of period	$	14	$	12	$	14	$	12

The Company's unrecognized tax benefits were increased by $5 for the three and nine months ended September 30, 2018 due to the filing of the Company's 2017 federal income tax return.

The entire amount of unrecognized tax benefits, if recognized, would affect the effective tax rate in the period of the release. In addition, for the three and nine months ended September 30, 2018 the Company recorded a receivable of $5 related to a tax indemnification agreement associated with the sale of Talcott Resolution. The receivable is separate from the tax liability and is classified as an other asset on the balance sheet.

For the three and nine months ended September 30, 2018, the Company recorded income tax expenses of $11 and $13, respectively, related to tax reform due to the filing of the Company's 2017 federal income tax return and finalization of the opening balance sheet for the Aetna Group Benefits acquisition as a lower corporate income tax rate (post acquisition) reduced the value of net deferred tax assets that were adjusted during the measurement period.

The federal audits have been completed through 2013, and the Company is not currently under examination for any open years. Management believes that adequate provision has been made in the consolidated financial statements for any potential adjustments that may result from tax examinations and other tax-related matters for all open tax years.

The Company classifies interest and penalties (if applicable) as income tax expense in the consolidated financial statements. The Company recognized no interest expense for the three and nine months ended September 30, 2018 and 2017. The Company had no interest payable as of September 30, 2018 and 2017. The Company does not believe it would be subject to any penalties in any open tax years and, therefore, has not recorded any accrual for penalties.

Net deferred income taxes include the future tax benefits associated with the net operating loss carryover, foreign tax credit carryover and general business credit carryforward as shown in the table below.

Future Tax Benefits
	As of
	September 30, 2018				Expiration
	Carryover amount		Expected tax benefit, gross		Dates			Amount
Net operating loss carryover - U.S.	$	2,814	$	591	2023	-	2036	$	2,814
Net operating loss carryover - foreign	$	4	$	—	No expiration			$	4
Foreign tax credit carryover	$	5	$	5	2023	-	2024	$	5
General business credit carryover	$	4	$	4	2031	-	2037	$	4

Net Operating Loss Carryover

U.S. Net Operating Losses ("NOLs") reflected above arose in taxable years prior to 2017 and are still subject to prior tax law which allows for carryback and limits the period over which carryforwards may be used to offset taxable income as shown in the above table. Utilization of the Company's loss carryovers is dependent upon the generation of sufficient future taxable

income. Given the expected earnings of the Company going forward, including earnings of its property and casualty, group benefits and mutual fund businesses, the Company expects to generate sufficient taxable income in the future to utilize its net operating loss carryover. Although the Company projects there will be sufficient future taxable income to fully recover the remainder of the loss carryover, the Company's estimate of the likely realization may change over time.

50

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

12. Income Taxes (continued)

Tax Credit Carryovers

Foreign Tax Credits and General Business Credits- These credits are available to offset regular federal income taxes from future taxable income. The use of these credits prior to expiration depends on the generation of sufficient taxable income to first utilize all U.S. net operating loss carryovers. However, the Company has purchased certain investments which allow for utilization of the foreign tax credits without first using the net operating loss carryover. Consequently, the Company believes it is more likely than not the foreign tax credit carryover will be fully realized. Accordingly, no valuation allowance has been provided.

Alternative Minimum Tax Credit Carryovers- As of September 30, 2018, the Company had alternative minimum tax credit (AMT) carryovers, net of a sequestration fee payable, of $789, which are reflected as current income tax receivables within Other Assets in the accompanying condensed consolidated balance sheet. For the three and nine months ended September 30, 2018, the Company recorded a decrease in the AMT of $4 due to the filing of the 2017 federal income tax return as well as filings of the 2014, 2015 and 2016 amended federal income tax returns. AMT credits may be used to offset a regular tax liability for any taxable year beginning after December 31, 2017, and are refundable at an amount equal to 50 percent of the excess of the minimum tax credit for the taxable year over the amount of the credit allowable for the year against regular tax liability. Any remaining credits not used against regular tax liability are refundable in the 2021 tax year to be collected in 2022. The sequestration fee applies to refunds of AMT credits but does not apply if those credits are used against regular tax liability. As of September 30, 2018, the Company's AMT credit carryover was net of an estimated sequestration fee payable of $52, but the amount of the fee that is ultimately payable is subject to change depending on the level and timing of future taxable income and any subsequent changes in the sequestration rate. For the three and nine months ended September 30, 2018, the Company recorded income tax benefits of $0 and $3, respectively, related to the reduction of the sequestration rate from 6.6 percent to 6.2 percent.

51

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

13. Commitments and Contingencies

Management evaluates each contingent matter separately. A loss is recorded if probable and reasonably estimable. Management establishes liabilities for these contingencies at its “best estimate,” or, if no one number within the range of possible losses is more probable than any other, the Company records an estimated liability at the low end of the range of losses.

Litigation

The Hartford is involved in claims litigation arising in the ordinary course of business, both as a liability insurer defending or providing indemnity for third-party claims brought against insureds and as an insurer defending coverage claims brought against it. The Hartford accounts for such activity through the establishment of unpaid loss and loss adjustment expense reserves. Subject to the uncertainties in the following discussion under the caption “Asbestos and Environmental Claims,” management expects that the ultimate liability, if any, with respect to such ordinary-course claims litigation, after consideration of provisions made for potential losses and costs of defense, will not be material to the consolidated financial condition, results of operations or cash flows of The Hartford.

The Hartford is also involved in other kinds of legal actions, some of which assert claims for substantial amounts. In addition to the matter described below, these actions include putative class actions seeking certification of a state or national class. Such putative class actions have alleged, for example, underpayment of claims or improper sales or underwriting practices in connection with various kinds of insurance policies, such as personal and commercial automobile, property, disability, life and inland marine. The Hartford also is involved in individual actions in which punitive damages are sought, such as claims alleging bad faith in the handling of insurance claims or other allegedly unfair or improper business practices. Like many other insurers, The Hartford also has been joined in actions by asbestos plaintiffs asserting, among other things, that insurers had a duty to protect the public from the dangers of asbestos and that insurers committed unfair trade practices by asserting defenses on behalf of their policyholders in the underlying asbestos cases. Management expects that the ultimate liability, if any, with respect to such lawsuits, after consideration of provisions made for estimated losses, will not be material to the consolidated financial condition of The Hartford. Nonetheless, given the large or indeterminate amounts sought in certain of these actions, and the inherent unpredictability of litigation, the outcome in certain matters could, from time to time, have a material adverse effect on the Company’s results of operations or cash flows in particular quarterly or annual periods.

Mutual Funds Litigation — In February 2011, a derivative action was brought on behalf of six Hartford retail mutual funds in the United States District Court for the District of New Jersey, alleging that Hartford Investment Financial Services, LLC (“HIFSCO”), an indirect subsidiary of the Company, received excessive advisory and distribution fees in violation of its statutory fiduciary duty under Section 36(b) of the Investment Company Act of 1940. During the course of the litigation, the claims regarding distribution fees were dismissed without prejudice, the lineup of funds as plaintiffs changed several times, and the plaintiffs added as a defendant Hartford Funds Management Company (“HFMC”), an indirect subsidiary of the

Company that assumed the role of advisor to the funds as of January 2013. In June 2015, HFMC and HIFSCO moved for summary judgment, and plaintiffs cross-moved for partial summary judgment with respect to one fund. In March 2016, the court denied the plaintiff's motion, and granted summary judgment for HIFSCO and HFMC with respect to one fund, leaving six funds as plaintiffs: The Hartford Balanced Fund, The Hartford Capital Appreciation Fund, The Hartford Floating Rate Fund, The Hartford Growth Opportunities Fund, The Hartford Healthcare Fund, and The Hartford Inflation Plus Fund. A bench trial on the issue of liability was held in November 2016. In February 2017, the court granted judgment for HIFSCO and HFMC as to all claims. Plaintiffs appealed. In August 2018, the judgment was affirmed by the United States Court of Appeals for the Third Circuit. Although plaintiffs may still seek review by the United States Supreme Court, management believes that the possibility of a material adverse outcome in this matter is remote.

Asbestos and Environmental Claims–The Company continues to receive asbestos and environmental ("A&E") claims. Asbestos claims relate primarily to bodily injuries asserted by people who came in contact with asbestos or products containing asbestos. Environmental claims relate primarily to pollution and related clean-up costs.

The Company wrote several different categories of insurance contracts that may cover A&E claims. First, the Company wrote primary policies providing the first layer of coverage in an insured’s liability program. Second, the Company wrote excess and umbrella policies providing higher layers of coverage for losses that exhaust the limits of underlying coverage. Third, the Company acted as a reinsurer assuming a portion of those risks assumed by other insurers writing primary, excess, umbrella and reinsurance coverages.

Significant uncertainty limits the ability of insurers and reinsurers to estimate the ultimate reserves necessary for unpaid gross losses and expenses related to environmental and particularly asbestos claims. The degree of variability of gross reserve estimates for these exposures is significantly greater than for other more traditional exposures.

In the case of the reserves for asbestos exposures, factors contributing to the high degree of uncertainty include inadequate loss development patterns, plaintiffs’ expanding theories of liability, the risks inherent in major litigation, and inconsistent emerging legal doctrines. Furthermore, over time, insurers, including the Company, have experienced significant changes in the rate at which asbestos claims are brought, the claims experience of particular insureds, and the value of claims, making predictions of future exposure from past experience uncertain. Plaintiffs and insureds also have sought to use bankruptcy proceedings, including “pre-packaged” bankruptcies, to accelerate and increase loss payments by insurers. In addition, some policyholders have asserted new classes of claims for coverages to which an aggregate limit of liability may not apply. Further uncertainties include insolvencies of other carriers and unanticipated developments pertaining to the Company’s ability to recover reinsurance for A&E claims. Management believes these issues are not likely to be resolved in the near future.

In the case of the reserves for environmental exposures, factors contributing to the high degree of uncertainty include expanding

52

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

13. Commitments and Contingencies (continued)

theories of liability and damages, the risks inherent in major litigation, inconsistent decisions concerning the existence and scope of coverage for environmental claims, and uncertainty as to the monetary amount being sought by the claimant from the insured.

The reporting pattern for assumed reinsurance claims, including those related to A&E claims, is much longer than for direct claims. In many instances, it takes months or years to determine that the policyholder’s own obligations have been met and how the reinsurance in question may apply to such claims. The delay in reporting reinsurance claims and exposures adds to the uncertainty of estimating the related reserves.

It is also not possible to predict changes in the legal and legislative environment and their effect on the future development of A&E claims.

Given the factors described above, the Company believes the actuarial tools and other techniques it employs to estimate the ultimate cost of claims for more traditional kinds of insurance exposure are less precise in estimating reserves for A&E exposures. For this reason, the Company principally relies on exposure-based analysis to estimate the ultimate costs of these claims, both gross and net of reinsurance, and regularly evaluates new account information in assessing its potential A&E exposures. The Company supplements this exposure-based analysis with evaluations of the Company’s historical direct net loss and expense paid and reported experience, and net loss and expense paid and reported experience by calendar and/or report year, to assess any emerging trends, fluctuations or characteristics suggested by the aggregate paid and reported activity.

While the Company believes that its current A&E reserves are appropriate, significant uncertainties limit the ability of insurers and reinsurers to estimate the ultimate reserves necessary for unpaid losses and related expenses. The ultimate liabilities, thus, could exceed the currently recorded reserves, and any such additional liability, while not estimable now, could be material to The Hartford’s consolidated operating results and liquidity.

As of September 30, 2018, the Company reported $1.1 billion of net asbestos reserves and $214 of net environmental reserves. While the Company believes that its current A&E reserves are appropriate, significant uncertainties limit our ability to estimate the ultimate reserves necessary for unpaid losses and related expenses. The ultimate liabilities, thus, could exceed the currently recorded reserves, and any such additional liability, while not reasonably estimable now, could be material to The Hartford's consolidated operating results and liquidity.

Effective December 31, 2016, the Company entered into an A&E adverse development cover ("ADC") reinsurance agreement with National Indemnity Company ("NICO"), a subsidiary of Berkshire Hathaway Inc., to reduce uncertainty about potential adverse development of A&E reserves. Under the ADC, the Company paid a reinsurance premium of $650 for NICO to assume adverse net loss and allocated loss adjustment expense reserve development up to $1.5 billion above the Company’s existing net A&E reserves as of December 31, 2016 of approximately $1.7 billion. The $650 reinsurance premium was placed in a collateral trust account as security for NICO’s claim payment obligations to the Company.

Under retroactive reinsurance accounting, net adverse A&E reserve development after December 31, 2016 will result in an offsetting reinsurance recoverable up to the $1.5 billion limit. Cumulative ceded losses up to the $650 reinsurance premium paid are recognized as a dollar-for-dollar offset to direct losses incurred. Cumulative ceded losses exceeding the $650 reinsurance premium paid would result in a deferred gain. The deferred gain would be recognized over the claim settlement period in the proportion of the amount of cumulative ceded losses collected from the reinsurer to the estimated ultimate reinsurance recoveries. Consequently, until periods when the deferred gain is recognized as a benefit to earnings, cumulative adverse development of A&E claims after December 31, 2016 in excess of $650 may result in significant charges against earnings. Furthermore, cumulative adverse development of A&E claims could ultimately exceed the $1.5 billion treaty limit in which case any adverse development in excess of the treaty limit would be absorbed as a charge to earnings by the Company. In these scenarios, the effect of these changes could be material to the Company’s consolidated operating results and liquidity. As of September 30, 2018, the Company has incurred $285 in cumulative adverse development on A&E reserves that have been ceded under the ADC treaty with NICO, leaving approximately $1.2 billion of coverage available for future adverse net reserve development, if any.

Derivative Commitments

Certain of the Company’s derivative agreements contain provisions that are tied to the financial strength ratings, as set by nationally recognized statistical agencies, of the individual legal entity that entered into the derivative agreement. If the legal entity’s financial strength were to fall below certain ratings, the counterparties to the derivative agreements could demand immediate and ongoing full collateralization and in certain instances enable the counterparties to terminate the agreements and demand immediate settlement of all outstanding derivative positions traded under each impacted bilateral agreement. The settlement amount is determined by netting the derivative positions transacted under each agreement. If the termination rights were to be exercised by the counterparties, it could impact the legal entity’s ability to conduct hedging activities by increasing the associated costs and decreasing the willingness of counterparties to transact with the legal entity. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that are in a net liability position as of September 30, 2018 was $69, of which the legal entities have posted collateral of $68 in the normal course of business. Based on derivative market values as of September 30, 2018, a downgrade of one level below the current financial strength rates by either Moody's or S&P would not require additional assets to be posted as collateral. Based on derivative market values as of September 30, 2018, a downgrade of two levels below the current financial strength ratings by either Moody's or S&P would require an additional $8 of assets to be posted as collateral. These collateral amounts could change as derivative market values change, as a result of changes in our hedging activities or to the extent changes in contractual terms are negotiated. The nature of the collateral that we post, if required, is primarily in the form of U.S. Treasury bills, U.S. Treasury notes and government agency securities.

53

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

14. Equity

Capital Purchase Program ("CPP") Warrants

As of September 30, 2018 and December 31, 2017, respectively, the Company has 2.1 million and 2.2 million of CPP warrants outstanding and exercisable. CPP warrant exercises were 0.1 million and 0.6 million for the three months endedSeptember 30, 2018 and 2017, respectively. CPP warrant exercises were 0.2 million and 1.7 million for the nine months ended September 30,2018 and 2017, respectively.

The declaration of common stock dividends by the Company in excess of a threshold triggers a provision in the Company's

warrant agreement with The Bank of New York Mellon resulting in adjustments to the CPP warrant exercise price. Accordingly, the declaration of a common stock dividend during the three months endedSeptember 30, 2018 resulted in an adjustment to the CPP warrant exercise price. The CPP warrant exercise price was $8.886 as of September 30, 2018 and $8.999 as of December 31, 2017.

Equity Repurchase Program

The Company does not currently have an equity repurchase authorization in 2018.

54

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

15. Changes In and Reclassifications From Accumulated Other Comprehensive Income (Loss)

Changes in AOCI, Net of Tax for the Three Months Ended September 30, 2018
	Changes in
	Net Unrealized Gain on Securities			OTTI Losses in OCI			Net Gain on Cash Flow Hedging Instruments			Foreign Currency Translation Adjustments		Pension and Other Postretirement Plan Adjustments			AOCI, net of tax
Beginning balance	$	211		$	(3	)	$	(12	)	$	33	$	(1,582	)	$	(1,353	)
OCI before reclassifications	(183		)	(1		)	1			1		1			(181		)
Amounts reclassified from AOCI	12			—			(6		)	—		9			15
OCI, net of tax	(171		)	(1		)	(5		)	1		10			(166		)
Ending balance	$	40		$	(4	)	$	(17	)	$	34	$	(1,572	)	$	(1,519	)

Changes in AOCI, Net of Tax for the Nine Months Ended September 30, 2018
	Changes in
	Net Unrealized Gain on Securities			OTTI Losses in OCI			Net Gain on Cash Flow Hedging Instruments			Foreign Currency Translation Adjustments			Pension and Other Postretirement Plan Adjustments			AOCI, net of tax
Beginning balance	$	1,931		$	(3	)	$	18		$	34		$	(1,317	)	$	663
Cumulative effect of accounting changes, net of tax [1]	273			—			2			4			(284		)	(5		)
Adjusted balance, beginning of period	2,204			(3		)	20			38			(1,601		)	658
OCI before reclassifications [2]	(2,213		)	—			(12		)	(4		)	—			(2,229		)
Amounts reclassified from AOCI	49			(1		)	(25		)	—			29			52
OCI, net of tax	(2,164		)	(1		)	(37		)	(4		)	29			(2,177		)
Ending balance	$	40		$	(4	)	$	(17	)	$	34		$	(1,572	)	$	(1,519	)

[1]Includes reclassification to retained earnings of $88 of stranded tax effects and $93 of net unrealized gains. Refer to Note 1 - Basis of Presentation and Significant Accounting Policies for further information.

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

55

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

15. Changes In and Reclassifications From Accumulated Other Comprehensive Income (Loss) (continued)

Reclassifications from AOCI
	Three Months Ended September 30, 2018			Nine Months Ended September 30, 2018			Affected Line Item in the Condensed Consolidated Statement of Operations
Net Unrealized Gain on Securities
Available-for-sale securities	$	(15	)	$	(59	)	Net realized capital gains
	(15		)	(59		)	Total before tax
	(3		)	(12		)	Income tax expense
	—			(2		)	Income from discontinued operations, net of tax
	$	(12	)	$	(49	)	Net income
OTTI Losses in OCI
Other than temporary impairments	$	—		$	—		Net realized capital gains
	—			—			Total before tax
	—			—			Income tax expense
	$	—		$	1		Income from discontinued operations, net of tax
	$	—		$	1		Net income
Net Gains on Cash Flow Hedging Instruments
Interest rate swaps	$	—		$	1		Net realized capital gains
Interest rate swaps	7			24			Net investment income
	7			25			Total before tax
	1			5			Income tax expense
	$	—		$	5		Income from discontinued operations, net of tax
	$	6		$	25		Net income
Pension and Other Postretirement Plan Adjustments
Amortization of prior service credit	$	2		$	5		Insurance operating costs and other expenses
Amortization of actuarial loss	(14		)	(42		)	Insurance operating costs and other expenses
	(12		)	(37		)	Total before tax
	(3		)	(8		)	Income tax expense
	$	(9	)	$	(29	)	Net income
Total amounts reclassified from AOCI	$	(15	)	$	(52	)	Net income

Changes in AOCI, Net of Tax for the Three Months Ended September 30, 2017
	Changes in
	Net Unrealized Gain on Securities			OTTI Losses in OCI			Net Gain on Cash Flow Hedging Instruments			Foreign Currency Translation Adjustments		Pension and Other Postretirement Plan Adjustments			AOCI, net of tax
Beginning balance	$	1,755		$	(3	)	$	57		$	13	$	(1,328	)	$	494
OCI before reclassifications	119			(1		)	(2		)	14		1			131
Amounts reclassified from AOCI	(34		)	—			(12		)	—		6			(40		)
OCI, net of tax	85			(1		)	(14		)	14		7			91
Ending balance	$	1,840		$	(4	)	$	43		$	27	$	(1,321	)	$	585

56

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

15. Changes In and Reclassifications From Accumulated Other Comprehensive Income (Loss) (continued)

Changes in AOCI, Net of Tax for the Nine Months Ended September 30, 2017
	Changes in
	Net Unrealized Gain on Securities			OTTI Losses in OCI			Net Gain on Cash Flow Hedging Instruments			Foreign Currency Translation Adjustments		Pension and Other Postretirement Plan Adjustments			AOCI, net of tax
Beginning balance	$	1,276		$	(3	)	$	76		$	6	$	(1,692	)	$	(337	)
OCI before reclassifications	683			(1		)	7			21		(144		)	566
Amounts reclassified from AOCI	(119		)	—			(40		)	—		515			356
OCI, net of tax	564			(1		)	(33		)	21		371			922
Ending balance	$	1,840		$	(4	)	$	43		$	27	$	(1,321	)	$	585

Reclassifications from AOCI
	Three Months Ended September 30, 2017			Nine Months Ended September 30, 2017			Affected Line Item in the Condensed Consolidated Statement of Operations
Net Unrealized Gain on Securities
Available-for-sale securities	$	32		$	102		Net realized capital gains
	32			102			Total before tax
	11			36			Income tax expense
	13			53			Income from discontinued operations, net of tax
	$	34		$	119		Net income
Net Gains on Cash Flow Hedging Instruments
Interest rate swaps	$	—		$	5		Net realized capital gains
Interest rate swaps	8			27			Net investment income
	8			32			Total before tax
	3			11			Income tax expense
	7			19			Income from discontinued operations, net of tax
	$	12		$	40		Net income
Pension and Other Postretirement Plan Adjustments
Amortization of prior service credit	$	2		$	—		Insurance operating costs and other expenses
Amortization of actuarial loss	(12		)	(45		)	Insurance operating costs and other expenses
Settlement loss	—			(747		)	Insurance operating costs and other expenses
	(10		)	(792		)	Total before tax
	(4		)	(277		)	Income tax expense
	$	(6	)	$	(515	)	Net income
Total amounts reclassified from AOCI	$	40		$	(356	)	Net income

57

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

16. Employee Benefit Plans

The Company’s employee benefit plans are described in Note 18 - Employee Benefit Plans of Notes to Consolidated Financial Statements included in The Hartford’s 2017 Annual Report on Form 10-K. The Company made a contribution of $101 in September 2018 to the U.S. qualified defined benefit pension plan.

Net Periodic Benefit
	Pension Benefits						Other  Postretirement  Benefits
	Three Months Ended September 30,						Three Months Ended September 30,
	2018			2017			2018			2017
Service cost	$	1		$	1		$	—		$	—
Interest cost	36			36			1			2
Expected return on plan assets	(57		)	(55		)	(2		)	(2		)
Amortization of prior service credit	—			—			(2		)	(2		)
Amortization of actuarial loss	12			11			2			1
Settlements	—			—			—			—
Net periodic benefit	$	(8	)	$	(7	)	$	(1	)	$	(1	)

Net Periodic Cost (Benefit)
	Pension Benefits						Other  Postretirement  Benefits
	Nine months ended September 30,						Nine months ended September 30,
	2018			2017			2018			2017
Service cost	$	3		$	3		$	—		$	6
Interest cost	107			134			4			(6		)
Expected return on plan assets	(172		)	(214		)	(5		)	(5		)
Amortization of prior service credit	—			—			(5		)	—
Amortization of actuarial loss	37			41			5			4
Settlements	—			750			—			—
Net periodic cost (benefit)	$	(25	)	$	714		$	(1	)	$	(1	)

58

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

17. Stock Compensation Plans

In the second quarter of 2018, The Hartford modified the terms of the portion of its outstanding 2016 and 2017 performance share awards that are based on actual versus targeted return on equity over the performance period. The modification eliminated the benefit to return on equity that arose from the charge against earnings in 2017 driven by the effect of the lower corporate income tax rate on the carrying value of net deferred tax assets. This modification had no impact on compensation cost recognized over the vesting period since compensation cost based on the original performance share conditions is projected to be higher than what the cost would be based on the performance share conditions as modified.

59

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

18. Business Dispositions and Discontinued Operations

Discontinued Operations

Sale of life and annuity run-off business

On May 31, 2018, the Company’s wholly-owned subsidiary, Hartford Holdings, Inc. (HHI), completed the sale of its life and annuity run-off business to a group of investors led by Cornell Capital LLC, Atlas Merchant Capital LLC, TRB Advisors LP, Global Atlantic Financial Group, Pine Brook and J. Safra Group. Under the terms of the sale agreement signed December 3, 2017, the investor group formed a limited partnership, Hopmeadow Holdings LP, that acquired Hartford Life, Inc. (HLI), and its life and annuity operating subsidiaries, for cash of approximately $1.4 billion after a pre-closing dividend to The Hartford of $300. The Hartford received a 9.7% ownership interest in the limited partnership valued at a cost of $164. In addition, as part of the terms of the sale agreement, The Hartford reduced its long-term debt by $142 because the debt, which was issued by HLI, was included as part of the sale. Including cash proceeds and the retained equity interest and net of transaction costs, net proceeds for the sale were approximately $1.5 billion. The life and annuity run-off operations met the criteria for reporting as discontinued operations and are reported in the Corporate category through the date of sale.

The Company has recognized a loss on sale within discontinued operations of approximately $3.1 billion including $3.3 billion in the fourth quarter of 2017 and a reduction in loss on sale of $202 in the first nine months of 2018. The reduction in loss on sale in 2018 primarily resulted from the reclassification to retained earnings of $193 of tax effects stranded in AOCI due to the accounting for Tax Reform and a $141 increase in estimated retained tax benefits, primarily net operating loss carryovers, partially offset by $104 of operating income from discontinued operations during the period up until the closing date and a reclassification of $10 of net unrealized capital gains from AOCI to retained earnings. See Note 1 - Adoption of New Accounting Standards within Basis of Presentation and Significant Accounting Policies, for additional information about the reclassifications from AOCI to retained earnings. The estimated amount of retained net operating loss carryovers depends on the estimated tax basis of the business sold which has increased since the date the Company entered into the sale agreement. At closing, shareholders’ equity was further reduced for the amount of AOCI of the life and annuity run-off business, which was approximately $758 largely consisting of net unrealized gains on investments, net of shadow DAC. The AOCI balance was $1 billion as of December 31, 2017.

Cash inflows and outflows from and to the life and annuity run-off business after closing were immaterial to the overall inflows and outflows the Company. Additionally, the revenues and expenses presented in continuing operations related to pre-disposal operations were immaterial.

The Company will manage invested assets of the life and annuity run-off business for an initial term of five years and provide transition services for up to 24 months.

The Hartford reported its 9.7% ownership interest in Hopmeadow Holdings LP in other assets in the Consolidated Balance Sheet, which is accounted for under the equity method.

The Hartford recognizes its share of income in other revenues in the Condensed Consolidated Statement of Operations on a three month delay when financial information from the investee becomes available. The Company recognized $2 of income for the three and nine months ended September 30, 2018. The post-sale period amount represents month of June 2018 results as the Company's share of net income is dependent on the availability of financial information from the investee.

Major Classes of Assets and Liabilities Transferred to the Buyer in Connection with the Sale

	Carrying Value as of Closing			Carrying Value as of 12/31/2017
Assets
Cash and investments	$	27,058		$	30,135
Reinsurance recoverables	20,718			20,785
Loss accrual [1]	(3,044		)	(3,257		)
Other assets	2,907			1,439
Separate account assets	110,773			115,834
Total assets held for sale	158,412			164,936
Liabilities
Reserve for future policy benefits and unpaid loss and loss adjustment expenses	$	14,308		$	14,482
Other policyholder funds and benefits payable	28,680			29,228
Long-term debt	142			142
Other liabilities	2,222			2,756
Separate account liabilities	110,773			115,834
Total liabilities held for sale	$	156,125		$	162,442

[1] Represents the estimated accrued loss on sale of the Company's life and annuity run-off business.

60

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

18. Business Dispositions and Discontinued Operations (continued)

Reconciliation of the Major Line Items Constituting Pretax Profit (Loss) of Discontinued Operations

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Revenues
Earned premiums	$	—		$	27		$	39		$	97
Fee income and other	—			217			382			665
Net investment income	—			326			519			964
Net realized capital gains (losses)	4			(29		)	(68		)	(53		)
Total revenues	4			541			872			1,673
Benefits, losses and expenses
Benefits, losses and loss adjustment expenses	—			356			535			1,036
Amortization of DAC	—			15			58			58
Insurance operating costs and other expenses [1]	(5		)	93			157			275
Total benefits, losses and expenses	(5		)	464			750			1,369
Income before income taxes	9			77			122			304
Income tax expense (benefit)	(7		)	(12		)	2			28
Income from operations of discontinued operations, net of tax	16			89			120			276
Net realized capital gain (loss) on disposal, net of tax	(11		)	—			202			—
Income from discontinued operations, net of tax	$	5		$	89		$	322		$	276

[1]Corporate allocated overhead has been included in continuing operations.

Cash flows from discontinued operations included in the Consolidated Statement of Cash Flows were as follows:

Cash Flows from Discontinued Operations

	Nine Months Ended September 30,
	2018			2017
Net cash provided by operating activities from discontinued operations	$	603		$	612
Net cash provided by investing activities from discontinued operations	$	463		$	266
Net cash used in financing activities from discontinued operations [1]	$	(737	)	$	(595	)
Cash paid for interest	$	—		$	2

[1] Excludes return of capital to parent of $619 and $598 for the nine months ended September 30, 2018 and 2017, respectively.

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Part I - Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

(Dollar amounts in millions except for per share data, unless otherwise stated)

The Hartford provides projections and other forward-looking information in the following discussions, which contain many forward-looking statements, particularly relating to the Company’s future financial performance. These forward-looking statements are estimates based on information currently available to the Company, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are subject to the cautionary statements set forth on pages 3 and 4 of this Form 10-Q. Actual results are likely to differ, and in the past have differed, materially from those forecast by the Company, depending on the outcome of various factors, including, but not limited to, those set forth in the following discussion; Part II, Item 1A, Risk Factors of this Quarterly Report on Form 10-Q; Part II, Item 1A, Risk Factors in The Hartford's Quarterly Report on Form 10-Q for the quarter ended June 30, 2018; Part I, Item 1A, Risk Factors in The Hartford’s 2017 Form 10-K Annual Report; and our other filings with the Securities and Exchange Commission. The Hartford undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise.

On August 22, 2018, the Company announced it entered into a definitive agreement to acquire all outstanding common shares of The Navigators Group, Inc. ("Navigators Group"), a global specialty underwriter, for $70 a share, or $2.1 billion in cash. The transaction is expected to close in the first half of 2019, subject to approval by Navigators Group's shareholders and other customary closing conditions, including receipt of regulatory approvals.

On May 31, 2018, Hartford Holdings, Inc., a wholly owned subsidiary of the Company, completed the sale of the issued and outstanding equity of Hartford Life, Inc. (“HLI”), a holding company, and its life and annuity operating subsidiaries. For discussion of this transaction, see Note 18 - Business Dispositions and Discontinued Operations of Notes to Condensed Consolidated Financial Statements.

On February 16, 2018, The Hartford entered into a renewal rights agreement with the Farmers Exchanges, of the Farmers Insurance Group of Companies, to acquire its Foremost-branded small commercial business sold through independent agents. Written premium from this agreement began in the third quarter of 2018.

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 business through a reinsurance transaction. Aetna's U.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. For discussion of this transaction, see Note 2 - Business Acquisitions of Notes to Condensed Consolidated Financial Statements.

On May 10, 2017, the Company completed the sale of its U.K. property and casualty run-off subsidiaries. The operating results of the Company's U.K. property and casualty run-off subsidiaries are included in the P&C Other Operations reporting segment. For discussion of this transaction, see Note 20 - Business Dispositions and Discontinued Operations in The Hartford's 2017 Form 10K Annual Report Notes to Consolidated Financial Statements.

Certain reclassifications have been made to historical financial information presented in Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") to conform to the current period presentation.

Distribution costs within the Mutual Funds segment that were previously netted against fee income are presented gross in insurance operating costs and other expenses.

The Hartford defines increases or decreases greater than or equal to 200% as “NM” or not meaningful.

INDEX

Description	Page
Key Performance Measures and Ratios	62
The Hartford's Operations	66
Consolidated Results of Operations	69
Investment Results	72
Critical Accounting Estimates	74
Commercial Lines	82
Personal Lines	86
Property & Casualty Other Operations	90
Group Benefits	91
Mutual Funds	93
Corporate	95
Enterprise Risk Management	96
Capital Resources and Liquidity	106
Impact of New Accounting Standards	112

KEY PERFORMANCE MEASURES AND RATIOS

The Company considers the measures and ratios in the following discussion to be key performance indicators for its businesses. Management believes that these ratios and measures are useful in understanding the underlying trends in The Hartford’s businesses. However, these key performance indicators should only be used in conjunction with, and not in lieu of, the results presented in the segment discussions that follow in this MD&A.

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Part I - Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

These ratios and measures may not be comparable to other performance measures used by the Company’s competitors.

Definitions of Non-GAAP and Other Measures and Ratios

Assets Under Management ("AUM")- include mutual fund and Exchange-Traded Products ("ETP") assets. AUM is a measure used by the Company because a significant portion of the Company’s mutual fund revenues are based upon asset values. These revenues increase or decrease with a rise or fall in AUM whether caused by changes in the market or through net flows.

Book Value per Diluted Share excluding accumulated other comprehensive income ("AOCI")-is calculated based upon a non-GAAP financial measure. It is calculated by dividing (a) total stockholders' equity, excluding AOCI, after tax, by (b) common shares outstanding and dilutive potential common shares. The Company provides 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.

Current Accident Year Catastrophe Ratio-a component of the loss and loss adjustment expense ratio, represents the ratio of catastrophe losses incurred in the current accident year (net of reinsurance) to earned premiums. A catastrophe is an event that causes $25 or more in industry insured property losses and affects a significant number of property and casualty policyholders and insurers, as defined by the Property Claim Service office of Verisk. The current accident year catastrophe ratio includes the effect of catastrophe losses, but does not include the effect of reinstatement premiums.

Combined Ratio-the sum of the loss and loss adjustment expense ratio, the expense ratio and the policyholder dividend

ratio. This ratio is a relative measurement that describes the related cost of losses and expenses for every $100 of earned premiums. A combined ratio below 100 demonstrates underwriting profit; a combined ratio above 100 demonstrates underwriting losses.

Core Earnings- a non-GAAP measure, is 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 a reduction in deferred income tax valuation allowance, impact of the Tax Cuts and Jobs Act of 2017 ("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 that tend to be variable from period to period based on capital market conditions. The Company believes, however, that some realized capital gains and losses are integrally related to our insurance operations, so core earnings includes net realized gains and losses such as net periodic settlements on credit derivatives. These net realized gains and losses are directly related to an offsetting item included in the income statement such as net investment income. Net income (loss) is the most directly comparable U.S. GAAP measure to core earnings. Core earnings should not be considered as a substitute for net income (loss) and does not reflect the overall profitability of the Company’s business. Therefore, the Company believes that it is useful for investors to evaluate both net income (loss) and core earnings when reviewing the Company’s performance.

Reconciliation of Net Income to Core Earnings

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Net income	$	432		$	234		$	1,611		$	572
Less: Net realized capital gains excluded from core earnings, before tax	37			25			57			101
Less: Loss on extinguishment of debt, before tax	—			—			(6		)	—
Less: Pension settlement, before tax	—			—			—			(750		)
Less: Integration and transaction costs associated with acquired business, before tax	(12		)	—			(35		)	—
Less: Income tax benefit (expense)	(16		)	(10		)	(18		)	224
Less: Income from discontinued operations, after tax	5			89			322			276
Core earnings	$	418		$	130		$	1,291		$	721

Core Earnings Margin-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).

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Part I - Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

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 net income margin and core earnings margin when reviewing performance. A reconciliation of net income margin to core earnings margin is set forth in the Results of Operations section within MD&A - Group Benefits.

Expense Ratio-for the underwriting segments of Commercial Lines and Personal Lines is the ratio of underwriting expenses less fee income, to earned premiums. Underwriting expenses include the amortization of deferred policy acquisition costs and insurance operating costs and expenses, including certain centralized services costs and bad debt expense. Deferred policy acquisition costs include commissions, taxes, licenses and fees and other incremental direct underwriting expenses and are amortized over the policy term.

The expense ratio for Group Benefits is expressed as the ratio of insurance operating costs and other expenses including amortization of intangibles and amortization of deferred policy acquisition costs, to premiums and other considerations, excluding buyout premiums. The expense ratio does not include integration and other transaction costs associated with an acquired business.

Fee Income-largely driven from amounts earned as a result of contractually defined percentages of assets under management in our Mutual Funds business. These fees are generally earned on a daily basis. Therefore, the growth in assets under management either through positive net flows or favorable market performance will have a favorable impact on fee income. Conversely, either negative net flows or unfavorable market performance will reduce fee income.

Loss and Loss Adjustment Expense Ratio-a measure of the cost of claims incurred in the calendar year divided by earned premium and includes losses incurred for both the current and prior accident years. Among other factors, the loss and loss adjustment expense ratio needed for the Company to achieve its targeted return on equity fluctuates from year to year based on changes in the expected investment yield over the claim settlement period, the timing of expected claim settlements and the targeted returns set by management based on the competitive environment.

The loss and loss adjustment expense ratio is affected by claim frequency and claim severity, particularly for shorter-tail property lines of business, where the emergence of claim frequency and severity is credible and likely indicative of ultimate losses. Claim frequency represents the percentage change in the average number of reported claims per unit of exposure in the current accident year compared to that of the previous accident year. Claim severity represents the percentage change in the estimated average cost per claim in the current accident year compared to that of the previous accident year. As one of the factors used to determine pricing, the Company’s practice is to first make an overall assumption about claim frequency and severity for a given line of business and then, as part of the ratemaking process, adjust the assumption as appropriate for the particular state, product or coverage.

Loss and Loss Adjustment Expense Ratio before Catastrophes and Prior Accident Year

Development-a measure of the cost of non-catastrophe claims incurred in the current accident year divided by earned premiums. Management believes that the current accident year loss and loss adjustment expense ratio before catastrophes is a performance measure that is useful to investors as it removes the impact of volatile and unpredictable catastrophe losses and prior accident year development.

Loss Ratio, excluding Buyouts-utilized for the Group Benefits segment and is expressed as a ratio of benefits, losses and loss adjustment expenses to premiums and other considerations, excluding buyout premiums. Since Group Benefits occasionally buys a block of claims for a stated premium amount, the Company excludes this buyout from the loss ratio used for evaluating the profitability of the business as buyouts may distort the loss ratio. Buyout premiums represent takeover of open claim liabilities and other non-recurring premium amounts.

Mutual Fund and Exchange-Traded Product Assets-are owned by the shareholders of those products and not by the Company and, therefore, are not reflected in the Company’s consolidated financial statements except in instances where the Company seeds new investment products and holds an investment in the fund for a period of time. Mutual fund and ETP assets are a measure used by the Company primarily because a significant portion of the Company’s Mutual Funds segment revenues are based upon asset values. These revenues increase or decrease with a rise or fall in AUM whether caused by changes in the market or through net flows.

New Business Written Premium-represents the amount of premiums charged for policies issued to customers who were not insured with the Company in the previous policy term. New business written premium plus renewal policy written premium equals total written premium.

Policies in Force- represent the number of policies with coverage in effect as of the end of the period. The number of policies in force is a growth measure used for Personal Lines and standard commercial lines within Commercial Lines and is affected by both new business growth and policy count retention.

Policy Count Retention- represents the ratio of the number of policies renewed during the period divided by the number of policies available to renew. The number of policies available to renew represents the number of policies, net of any cancellations, written in the previous policy term. Policy count retention is affected by a number of factors, including the percentage of renewal policy quotes accepted and decisions by the Company to non-renew policies because of specific policy underwriting concerns or because of a decision to reduce premium writings in certain classes of business or states. Policy count retention is also affected by advertising and rate actions taken by competitors.

Policyholder Dividend Ratio- the ratio of policyholder dividends to earned premium.

Prior Accident Year Loss and Loss Adjustment Expense 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.

64

Part I - Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Reinstatement Premiums- represents additional ceded premium paid for the reinstatement of the amount of reinsurance coverage that was reduced as a result of a reinsured loss recoverable by the Company.

Renewal Earned Price Increase (Decrease)-Written premiums are earned over the policy term, which is six months for certain Personal Lines automobile business and twelve months for substantially all of the remainder of the Company’s Property and Casualty business. Since the Company earns premiums over the six to twelve month term of the policies, renewal earned price increases (decreases) lag renewal written price increases (decreases) by six to twelve months.

Renewal Written Price Increase (Decrease)-for Commercial Lines, represents the combined effect of rate changes, amount of insurance and individual risk pricing decisions per unit of exposure on policies that renewed. For Personal Lines, renewal written price increases represent the total change in premium per policy 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. The rate component represents the change in rate filed with and approved by state regulators during the period and the amount of insurance represents the change in the value of the rating base, such as model year/vehicle symbol for automobiles, building replacement costs for property and wage inflation for workers’ compensation. A number of factors affect renewal written price increases (decreases) including expected loss costs as projected by the Company’s pricing actuaries, rate filings approved by state regulators, risk selection decisions made by the Company’s underwriters and marketplace competition. Renewal written price changes reflect the property and casualty insurance market cycle. Prices tend to increase for a particular line of business when insurance carriers have incurred significant losses in that line of business in the recent past or the industry as a whole commits less of its capital to writing exposures in that line of business. Prices tend to decrease when recent loss experience has been favorable or when competition among insurance carriers increases. Renewal written price statistics are subject to change from period to period, based on a number of factors, including changes in actuarial estimates and the effect of subsequent cancellations and non-renewals, and modifications made to better reflect ultimate pricing achieved.

Return on Assets (“ROA”), Core Earnings- 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, core earnings is calculated by dividing core earnings by a daily average AUM. 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 business 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, and ROA, core earnings when reviewing the Mutual Funds segment performance. A reconciliation of ROA to ROA, core

earnings is set forth in the Results of Operations section within MD&A - Mutual Funds.

Underlying Combined Ratio- a non-GAAP financial measure, represents the combined ratio before catastrophes and prior accident year development. Combined ratio is the most directly comparable U.S. GAAP measure. The Company believes the underlying combined 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 combined ratio to underlying combined ratio is set forth in the Results of Operations section within MD&A - Commercial Lines and Personal Lines.

Underwriting Gain (Loss)-The Company's management evaluates profitability of the P&C businesses primarily on the basis of underwriting gain (loss). Underwriting gain (loss) is a before tax measure that represents earned premiums less incurred losses, loss adjustment expenses, amortization of deferred policy acquisition costs, underwriting expenses and dividends to policyholders. 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 economies of scale and its management of acquisition costs and other underwriting expenses. Net income (loss) is the most directly comparable 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. A reconciliation of underwriting gain (loss) to net income (loss) for Commercial Lines, Personal Lines and Property & Casualty Other Operations is set forth in segment sections of MD&A.

Written and Earned Premiums-Written premium is a statutory accounting financial measure which represents the amount of premiums charged for policies issued, net of reinsurance, during a fiscal period. Earned premium is a U.S. GAAP and statutory measure. Premiums are considered earned and are included in the financial results on a pro rata basis over the policy period. Management believes that written premium is a performance measure that is useful to investors as it reflects current trends in the Company’s sale of property and casualty insurance products. Written and earned premium are recorded net of ceded reinsurance premium.

Traditional life and disability insurance type products, such as those sold by Group Benefits, collect premiums from policyholders in exchange for financial protection for the policyholder from a specified insurable loss, such as death or disability. These premiums together with net investment income earned are used to pay the contractual obligations under these insurance contracts. Two major factors, new sales and persistency, impact premium growth. Sales can increase or decrease in a given year based on a number of factors, including but not limited to, customer demand for the Company’s product offerings, pricing competition, distribution channels and the

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Part I - Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Company’s reputation and ratings. Persistency refers to the percentage of premium remaining in-force from year-to-year.

THE HARTFORD’S OPERATIONS

Overview

The Hartford conducts business principally in five reporting segments including Commercial Lines, Personal Lines, Property & Casualty Other Operations, Group Benefits and Mutual Funds, as well as a Corporate category. 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 ("Talcott Resolution"), 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 a 9.7% ownership interest in the limited partnership that acquired Talcott Resolution.

The Company derives its revenues principally from: (a) premiums earned for insurance coverage provided to insureds; (b) management fees on mutual fund and ETP assets; (c) net investment income; (d) fees earned for services provided to third parties; (e) net realized capital gains and losses; and (f) other revenues earned from its 9.7% ownership interest in the limited partnership that owns Talcott Resolution. Premiums charged for insurance coverage are earned principally on a pro rata basis over the terms of the related policies in-force.

The profitability of the Company's property and casualty insurance businesses over time is greatly influenced by the Company’s underwriting discipline, which seeks to manage exposure to loss through favorable risk selection and diversification, its management of claims, its use of reinsurance, the size of its in force block, actual mortality and morbidity experience, and its ability to manage its expense ratio which it accomplishes through economies of scale and its management of acquisition costs and other underwriting expenses. Pricing adequacy depends on a number of factors, including the ability to obtain regulatory approval for rate changes, proper evaluation of underwriting risks, the ability to project future loss cost frequency and severity based on historical loss experience adjusted for known trends, the Company’s response to rate actions taken by competitors, its expense levels and expectations about regulatory and legal developments. The Company seeks to price its insurance policies such that insurance premiums and future net investment income earned on premiums received will cover underwriting expenses and the ultimate cost of paying claims reported on the policies and provide for a profit margin. For many of its insurance products, the Company is required to obtain approval for its premium rates from state insurance departments.

Similar to Property & Casualty, profitability of the Group Benefits business depends, in large part, on the ability to evaluate and price risks appropriately and make reliable estimates of mortality, morbidity, disability and longevity. To manage the pricing risk,

Group Benefits generally offers term insurance policies, allowing for the adjustment of rates or policy terms in order to minimize the adverse effect of market trends, loss costs, declining interest rates and other factors. However, as policies are typically sold with rate guarantees of up to three years, pricing for the Company’s products could prove to be inadequate if loss and expense trends emerge adversely during the rate guarantee period. For some of its products, the Company is required to obtain approval for its premium rates from state insurance departments. New and renewal business for group benefits business, particularly for long-term disability, are priced using an assumption about expected investment yields over time. While the Company employs asset-liability duration matching strategies to mitigate risk and may use interest-rate sensitive derivatives to hedge its exposure in the Group Benefits investment portfolio, cash flow patterns related to the payment of benefits and claims are uncertain and actual investment yields could differ significantly from expected investment yields, affecting profitability of the business. In addition to appropriately evaluating and pricing risks, the profitability of the Group Benefits business depends on other factors, including the Company’s response to pricing decisions and other actions taken by competitors, its ability to offer voluntary products and self-service capabilities, the persistency of its sold business and its ability to manage its expenses which it seeks to achieve through economies of scale and operating efficiencies.

The financial results of the Company’s mutual fund and ETP businesses depend largely on the amount of assets under management and the level of fees charged based, in part, on asset share class and product type. Changes in assets under management are driven by two main factors, net flows, and the market return of the funds, which is heavily influenced by the return realized in the equity and bond markets. Net flows are comprised of new sales less redemptions by mutual fund and ETP shareholders. Financial results are highly correlated to the growth in assets under management since these products generally earn fee income on a daily basis.

The investment return, or yield, on invested assets is an important element of the Company’s earnings since insurance products are priced with the assumption that premiums received can be invested for a period of time before benefits, losses and loss adjustment expenses are paid. Due to the need to maintain sufficient liquidity to satisfy claim obligations, the majority of the Company’s invested assets have been held in available-for-sale securities, including, among other asset classes, corporate bonds, municipal bonds, government debt, short-term debt, mortgage-backed securities, asset-backed securities and collateralized loan obligations.

The primary investment objective for the Company is to maximize economic value, consistent with acceptable risk parameters, including the management of credit risk and interest rate sensitivity of invested assets, while generating sufficient after tax income to meet policyholder and corporate obligations. Investment strategies are developed based on a variety of factors including business needs, regulatory requirements and tax considerations.

For further information on the Company's reporting segments refer to Part I, Item 1, Business - Reporting Segments in The Hartford’s 2017 Form 10-K Annual Report.

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Part I - Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Financial Highlights

Net Income Net Income per Diluted Share Book Value per Diluted Share

Net income of $432, or $1.20 per basic share and $1.19 per diluted share, increased from third quarter2017 net income of $234, or $0.65 per basic share and $0.64 per diluted share, primarily due to higher earnings from continuing operations, partially offset by a decrease in income from discontinued operations. The higher income from continuing operations was primarily driven by an increase in income in Property and Casualty, Group Benefits and Mutual Funds that was partially attributable to a lower corporate Federal income tax rate in 2018.

Book value per diluted share decreased to $34.95 from $37.11 as of December 31, 2017 as a result of a 6% decrease in stockholders' equity resulting primarily from a decrease in AOCI over the nine month period, partially offset by net income in excess of shareholder dividends. AOCI decreased mainly due to the removal of AOCI related to Talcott Resolution upon the closing of the sale of that business, as well as lower net unrealized capital gains, driven by higher interest rates.

Net Investment Income    Annualized Investment Yield After tax

Net investment income of $444 increased 10% compared with third quarter2017 primarily due to higher fixed maturities asset levels primarily driven by the acquisition of Aetna's U.S. group life and disability business.

Net realized gainsincreased compared with the third quarter2017, with gains in 2018 primarily driven by appreciation in value of equity securities due to higher equity market levels, partially offset by net losses on sales in 2018 of fixed maturity securities driven by sector repositioning.

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Part I - Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Annualized investment yield of 3.3%, after tax, increased from 3.0%, after tax, compared with third quarter2017, primarily due to the effect of a lower corporate Federal income tax rate.

Net unrealized gains, after tax, for fixed maturities in the investment portfolio decreased by $171 in third quarter2018 primarily due to the effect of higher interest rates.

Written Premiums Combined Ratio

Written premiums for Property & Casualty decreased 1% compared with third quarter2017 reflecting a decrease in Personal Lines, largely offset by an increase in Commercial Lines.

Combined ratio forProperty & Casualty decreased 9.8 points to 97.3 compared with a combined ratio of 107.1 in third quarter2017, largely due to lower catastrophes, a lower current accident year loss and loss adjustment expense ratio for automobile and homeowners and favorable prior accident year development, partially offset by higher workers' compensation loss costs and a higher expense ratio.

Catastrophe losses of $169, before tax, decreased from catastrophe losses of $352, before tax, in third quarter2017, largely due to losses from hurricanes Harvey and Irma in 2017.

Prior accident year developmentwas a net favorable $60, before tax, in third quarter2018, primarily due to a decrease in reserves for workers' compensation, professional liability, auto liability and 2017 catastrophes. Reserve development was a net favorable $1, before tax, in third quarter2017, primarily due to a decrease in reserves for small commercial package business offset by a reserve increase for customs bond claims.

Net Income Margin - Group Benefits

Net income margin for Group Benefits decreased to 5.1% from 7.7% in the third quarter2017, primarily due to integration costs in 2018, a change from net realized capital gains to net realized capital losses, income tax expense from the impact of lower tax rates on

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deferred tax assets recognized upon filing of the 2017 tax return and finalization of the opening balance sheet for the Aetna U.S. group life and disability benefits acquisition and amortization of other intangible assets in 2018. Contributing to the net income margin in both the 2018 and 2017 periods was favorable prior incurral year development net of discount accretion with favorable life mortality and long term disability incidence trends in third quarter 2018, partially offset by lower claim terminations.

CONSOLIDATED RESULTS OF OPERATIONS

The Consolidated Results of Operations should be read in conjunction with the Company's Condensed Consolidated Financial Statements and the related Notes beginning on page 6 as well as with the segment operating results sections of MD&A.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018		2017		Change		2018		2017		Change
Earned premiums	$	3,987	$	3,447	16	%	$	11,872	$	10,340	15	%
Fee income	344		291		18	%	994		855		16	%
Net investment income	444		404		10	%	1,323		1,209		9	%
Net realized capital gains	38		26		46	%	60		105		(43	%)
Other revenues	29		24		21	%	73		66		11	%
Total revenues	4,842		4,192		16	%	14,322		12,575		14	%
Benefits, losses and loss adjustment expenses	2,786		2,638		6	%	8,219		7,482		10	%
Amortization of deferred policy acquisition costs	348		341		2	%	1,034		1,030		—	%
Insurance operating costs and other expenses	1,091		952		15	%	3,195		3,521		(9	%)
Loss on extinguishment of debt	—		—		—	%	6		—		NM
Interest expense	69		79		(13	%)	228		238		(4	%)
Amortization of other intangible assets	18		1		NM		54		3		NM
Total benefits, losses and expenses	4,312		4,011		8	%	12,736		12,274		4	%
Income (loss) from continuing operations before income taxes	530		181		193	%	1,586		301		NM
Income tax expense	103		36		186	%	297		5		NM
Income from continuing operations, net of tax	427		145		194	%	1,289		296		NM
Income from discontinued operations, net of tax	5		89		(94	%)	322		276		17	%
Net income	$	432	$	234	85	%	$	1,611	$	572	182	%

Three months ended September 30,2018 compared to the three months endedSeptember 30, 2017

Net income increased by $198 with an increase in income from continuing operations partially offset by a decrease in income from discontinued operations due to the sale of the run-off life and annuity business. Income from continuing operations increased by $282, primarily due to a higher before tax underwriting gain in Property & Casualty, increased before tax income in Group Benefits due to favorable life results and contribution from the fourth quarter 2017 acquisition of the Aetna U.S. group life and disability benefits business, and higher earnings in Mutual Funds driven by an increase in assets under management. Also contributing to the increase was the effect of a lower corporate Federal income tax rate in 2018. Contributing to the higher underwriting gain in Property & Casualty was lower current accident year catastrophes, more favorable prior accident year development, and an increase in current accident year underwriting results before catastrophes in Personal Lines automobile.

Earned premiumsincreased by $540 before tax, primarily due to the acquisition of the Aetna U.S. group life and disability business in November 2017 that has increased earned premiums in the Group Benefits segment. Earned premiums in Property and Casualty declined slightly, reflecting an 8% decline in Personal Lines, partially offset by a 4% increase in Commercial Lines. For a discussion of the Company's operating results by segment, see MD&A - Segment Operating Summaries.

Fee incomeincreased by 18% reflecting higher fee income in Group Benefits related to an increase in administrative service contracts as a result of the Aetna acquisition, in Mutual Funds largely due to higher assets under management, and in Corporate resulting from fees earned on the management of Talcott Resolution's investment portfolio.

Net investment incomeincreased by 10%, primarily due to a higher level of invested assets due to the acquisition of the Aetna U.S. group life and disability business. For further discussion of investment results, see MD&A - Investment Results, Net Investment Income.

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Part I - Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Net realized capital gains of $38 in the third quarter of 2018 increased from the third quarter of 2017, with gains in 2018 primarily driven by appreciation in value of equity securities due to higher equity market levels, partially offset by losses on sales of fixed maturity securities driven by sector repositioning. For further discussion of investment results, see MD&A - Investment Results, Net Realized Capital Gains.

Benefits, losses and loss adjustment expenses increased in Group Benefits, partially offset by a decrease in Property & Casualty. The increase in Group Benefits was largely due to the acquisition of the Aetna U.S. group life and disability business. The decrease in incurred losses for Property & Casualty was driven by:

• Current accident year losses and loss adjustment expenses before catastrophes in Property & Casualty decreased $52 before tax, primarily resulting from the effect of lower earned premium and a lower automobile loss ratio in Personal Lines, partially offset by the effect of higher earned premium in Commercial Lines and higher workers’ compensation claim frequency.

• Current accident year catastrophe losses of $169, before tax, for the three months endedSeptember 30, 2018, compared to $352, before tax, for the prior year period. Catastrophe losses in 2018 were primarily from hurricane Florence, wind and hail events in Colorado and wildfires in California and Colorado. Catastrophe losses in 2017 were primarily from hurricanes Harvey and Irma which accounted for $332, before tax, of catastrophe losses in the quarter. For additional information, see MD&A - Critical Accounting Estimates, Property & Casualty Insurance Product Reserves, Net of Reinsurance.

• Net prior accident year reserve development in Property & Casualty was favorable $60, before tax, for the three months endedSeptember 30, 2018, compared to favorable net reserve development of $1, before tax, for the prior year period. Prior accident year development in 2018 primarily included reserve decreases in reserves for workers’ compensation, professional liability, auto liability and catastrophe reserves. Prior accident year development in 2017 included a decrease in reserves for small commercial package business offset by a reserve increase for customs bond claims. For additional information, see MD&A - Critical Accounting Estimates, Property & Casualty Insurance Product Reserves, Net of Reinsurance.

Amortization of deferred policy acquisition costswas up slightly year over year as an increase in Commercial Lines was mostly offset by a decrease in Personal Lines.

Insurance operating costs and other expenses increased due to operating costs associated with the acquisition of the Aetna U.S. group life and disability business, an increase in direct marketing expenses in Personal Lines to generate new business growth, higher commissions in middle market, and higher variable expenses in Mutual Funds.

Amortization of other intangible assetsincreased reflecting the amortization of customer relationship and other intangibles in the Group Benefits segment that arose

from the acquisition of the Aetna U.S. group life and disability business.

Income tax expenseincreased due to an increase in before tax income, partially offset by the effect of a lower corporate Federal income tax rate. Differences between the Company's effective income tax rate and the U.S. statutory rate of 21% and 35% in 2018 and 2017, respectively, are due primarily to tax-exempt interest earned on invested assets, stock-based compensation and non-deductible executive compensation. In the third quarter of 2018, the Company recorded adjustments to 2017 tax year estimates as a result of filing the 2017 Federal income tax return and finalization of the opening balance sheet for the Aetna U.S. group life and disability business acquisition that resulted in increasing income tax expense by $14 in Group Benefits offset by an income tax benefit within income from discontinued operations of $11 in Corporate. For further discussion of income taxes, see Note 12 - Income Taxes of Notes to Condensed Consolidated Financial Statements.

Nine months ended September 30,2018 compared to the nine months endedSeptember 30, 2017

Net income increased primarily due to a pension settlement charge of $488, after tax, in the nine months endedSeptember 30, 2017, an increase in income across Property & Casualty, Group Benefits and Mutual Funds that was partially attributable to a lower corporate Federal income tax rate in 2018. Within Property & Casualty, an improvement in before tax earnings was mostly driven by lower current accident year catastrophes, favorable prior accident year development related to workers’ compensation and 2017 catastrophe events and due to improved Personal Lines automobile results. The improvement in Group Benefits income before tax was largely due to a lower disability ratio and revenue growth, including from the acquisition of the Aetna U.S. group life and disability benefits business, and the higher earnings in Mutual Funds was driven by an increase in assets under management.

Earned premiums increased by 15% or $1,532, before tax, primarily due to the acquisition of the Aetna U.S. group life and disability benefits business that has increased earned premiums in the Group Benefits segment. Earned premiums in Property and Casualty declined reflecting an 8% decline in Personal Lines, partially offset by a 2% increase in Commercial Lines. For a discussion of the Company's operating results by segment, see MD&A - Segment Operating Summaries.

Fee incomeincreased by 16% reflecting higher income in Group Benefits related to an increase in administrative service contracts as a result of the Aetna acquisition and in Mutual Funds largely due to higher assets under management.

Net investment incomeincreased primarily due to a higher level of invested assets due to the acquisition of the Aetna U.S. group life and disability business. For further discussion of investment results, see MD&A - Investment Results, Net Investment Income.

Net realized capital gains of $60 in the nine months endedSeptember 30, 2018 were lower than net realized capital gains in the prior year period. Net gains in 2018 were driven by sales and appreciation of equity securities, due to higher equity

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Part I - Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

market levels and tactical repositioning, as well as a gain on the sale of a private real estate investment. These gains were partially offset by net losses on sales of fixed maturity securities driven by duration, liquidity and credit management. For further discussion of investment results, see MD&A - Investment Results, Net Realized Capital Gains.

Benefits, losses and loss adjustment expenses increased in Group Benefits, partially offset by a decrease in Property & Casualty with the increase in Group Benefits primarily due to the effect of growth in earned premium largely resulting from the acquisition of the Aetna U.S. group life and disability business, partially offset by a lower group disability loss ratio. The decrease in incurred losses for Property & Casualty was driven by:

• Current accident year loss and loss adjustment expenses before catastrophes in Property & Casualty decreased$239, before tax, primarily resulting from the effect of lower Personal Lines earned premium and lower loss costs in Personal Lines auto, homeowners and general liability, partially offset by higher workers’ compensation claim frequency.

• Current accident year catastrophe losses of $460, before tax, for the nine months endedSeptember 30, 2018 decreased compared to $657, before tax, for the prior year period. Catastrophe losses in 2018 were primarily from multiple wind and hail events in Colorado, the Midwest, South and Mid-Atlantic, winter storms on the East Coast, hurricane Florence, and wildfires in California and Colorado. Catastrophe losses in 2017 were primarily due to hurricanes Harvey and Irma in the third quarter and multiple wind and hail events across various U.S. geographic regions, primarily in the Midwest, Colorado, Texas and the Southeast. For additional information, see MD&A - Critical Accounting Estimates, Property & Casualty Insurance Product Reserves, Net of Reinsurance.

• Net prior accident year reserve development in Property & Casualty was favorable $139, before tax, for the nine months endedSeptember 30, 2018, compared to unfavorable net reserve development of $1, before tax, for the prior year period. Prior accident year development in 2018 primarily included a decrease in reserves for workers’ compensation and a decrease in catastrophe reserves for the 2017 hurricanes.

Amortization of deferred policy acquisition costswas relatively flat year over year as a decrease in Personal Lines was largely offset by an increase in Commercial Lines.

Insurance operating costs and other expenses decreased due to a $750 pension settlement charge in the 2017 period, partially offset by an increase in operating costs associated with the acquisition of the Aetna U.S. group life and disability business, higher incentive-based compensation, increased commissions in Commercial Lines, and higher variable expenses in Mutual Funds.

Amortization of other intangible assetsincreased, reflecting the amortization of customer relationship intangibles in the Group Benefits segment that arose from the acquisition of the Aetna U.S. group life and disability business.

Income tax expenseincreased primarily due to an increase in before tax income, partially offset by the effect of a lower corporate Federal income tax rate. Differences between the Company's effective income tax rate and the U.S. statutory rate of 21% and 35% in 2018 and 2017, respectively, are due primarily to tax-exempt interest earned on invested assets, stock-based compensation and non-deductible executive compensation. For further discussion of income taxes, see Note 12 - Income Taxes of Notes to Condensed Consolidated Financial Statements.

Income from discontinued operations net of tax increased to $322 from $276 in the prior year period. The $322 of income from discontinued operations in 2018 was mostly attributable to recognizing additional retained tax benefits from the sale of the Talcott Resolution life and annuity run-off business and the reclassification of $193 of stranded tax effects from AOCI to retained earnings related to the sale of Talcott Resolution, both of which reduced the estimated loss on sale. The reclassification of stranded tax effects resulted in a corresponding increase in AOCI related to the assets held for sale. For more information on the reclassification of stranded tax effects, see Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Condensed Consolidated Financial Statements. Refer to the Corporate category MD&A discussion for more information about operating earnings from the Talcott Resolution life and annuity run-off business held for sale recognized up until the sale closed on May 31, 2018.

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Part I - Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

INVESTMENT RESULTS

Composition of Invested Assets
	September 30, 2018				December 31, 2017
	Amount		Percent		Amount		Percent
Fixed maturities, available-for-sale ("AFS"), at fair value	$	36,166	78.4	%	$	36,964	81.9	%
Fixed maturities, at fair value using the fair value option ("FVO")	24		0.1	%	41		0.1	%
Equity securities, at fair value [1]	1,035		2.2	%
Equity securities, AFS, at fair value [1]					1,012		2.3	%
Mortgage loans	3,559		7.7	%	3,175		7.0	%
Limited partnerships and other alternative investments	1,712		3.7	%	1,588		3.5	%
Other investments [2]	98		0.2	%	96		0.2	%
Short-term investments	3,540		7.7	%	2,270		5.0	%
Total investments	$	46,134	100.0	%	$	45,146	100.0	%

[1] Effective January 1, 2018, with the adoption of new accounting standards for financial instruments, equity securities, AFS were reclassified to equity securities at fair value.

[2] Includes derivative instruments.

September 30, 2018 compared to December 31, 2017

Total investmentsincreased primarily due to an increase in short-term investments and mortgage loans, offset by a decrease in fixed maturities, AFS.

Fixed maturities, AFS decreased primarily due to a decrease in valuations due to higher interest rates.

Short-term investments increased largely due to proceeds from the sale of Talcott Resolution, partially offset by a decline in the Company's securities lending program.

Mortgage loansincreased largely due to new originations of commercial mortgage loans within the industrial, multi-family, and single family markets.

Net Investment Income
	Three Months Ended September 30,										Nine Months Ended September 30,
	2018					2017					2018					2017
(Before tax)	Amount			Yield [1]		Amount			Yield [1]		Amount			Yield [1]		Amount			Yield [1]
Fixed maturities [2]	$	370		3.9	%	$	327		4.0	%	$	1,077		3.9	%	$	972		4.0	%
Equity securities	6			2.5	%	4			2.1	%	18			2.4	%	14			2.3	%
Mortgage loans	35			4.0	%	31			4.1	%	102			4.1	%	91			4.1	%
Limited partnerships and other alternative investments	45			10.6	%	48			12.8	%	157			13.3	%	145			13.2	%
Other [3]	10					13					27					39
Investment expense	(22		)			(19		)			(58		)			(52		)
Total net investment income	$	444		4.0	%	$	404		4.1	%	$	1,323		4.0	%	$	1,209		4.1	%
Total net investment income excluding limited partnerships and other alternative investments	$	399		3.7	%	$	356		3.8	%	$	1,166		3.7	%	$	1,064		3.8	%

[1] Yields calculated using 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.

[2] Includes net investment income on short-term investments.

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

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Part I - Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Three and nine months endedSeptember 30, 2018, compared to the three and nine months endedSeptember 30, 2017

Total net investment income increased primarily due to higher income from fixed maturities as a result of higher asset levels driven by the acquisition of Aetna's U.S. group life and disability business. In addition, for the nine month period, total net investment income increased due to limited partnerships and other alternative investments as a result of higher returns on private equity and real estate investments.

Annualized net investment income yield,excluding non-routine items which primarily include prepayment penalties on mortgage loans, paydowns and make-whole payments on fixed maturities, was 3.7% for the nine month periods in 2018 and 2017.

New money yield, excluding certain U.S. Treasury securities and cash equivalent securities for the 2018 nine month

period, was approximately 4.0% which was above the average yield of sales and maturities of 3.6% for the same period. For the 2018 nine month period, the average reinvestment rate of 4.0% increased from 3.5% for the 2017nine month period, due to higher interest rates.

Though new money rates have risen, since investment income in 2018 includes the lower yield on Aetna group life and disability assets that were recorded at current yields as of the November 1, 2017 acquisition date, we expect the annualized net investment income yield for the 2018 calendar year, excluding limited partnerships and other alternative investments, to approximate the portfolio yield earned in 2017 though it could be higher depending on the level of non-routine income and if reinvestment rates stay above the sales/maturity yield. The estimated impact on net investment income yield is subject to change as the composition of the portfolio changes through portfolio management and changes in market conditions.

Net Realized Capital Gains
	Three Months Ended September 30,						Nine Months Ended September 30,
(Before tax)	2018			2017			2018			2017
Gross gains on sales	$	26		$	46		$	91		$	184
Gross losses on sales	(41		)	(16		)	(129		)	(84		)
Equity securities [1]	46			—			88			—
Net other-than-temporary impairment ("OTTI") losses recognized in earnings [2]	(1		)	(1		)	(1		)	(4		)
Transactional foreign currency revaluation	—			—			1			14
Non-qualifying foreign currency derivatives	1			—			2			(14		)
Other, net [3]	7			(3		)	8			9
Net realized capital gains	$	38		$	26		$	60		$	105

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

[2] See Other-Than-Temporary Impairments within the Investment Portfolio Risks and Risk Management section of the MD&A.

[3] Primarily consists of changes in value of non-qualifying derivatives and including credit derivatives.

Three and nine months endedSeptember 30, 2018

Gross gains and losses on sales were primarily the result of duration, liquidity and credit management within corporate securities, U.S. treasury securities, and tax-exempt municipal bonds as well as from the sale of a private real estate investment.

Equity securities net gains were driven by appreciation of equity securities due to higher equity market levels and, for the nine month period, gains on sales due to tactical repositioning.

Other, net gainsfor the three month period were primarily due to gains on credit derivatives of $6 driven by credit spread tightening. Gains for the nine month period were primarily driven by gains on interest rate derivatives of $7 due to an increase in interest rates.

Three and nine months endedSeptember 30, 2017

Gross gains and losses on saleswere primarily the result of duration, liquidity and credit management within corporate securities, equity securities, tax-exempt municipal bonds, residential mortgage-backed securities ("RMBS") and U.S. treasury securities.

Other, net lossesfor the three month period were primarily due to losses of $4 on interest rate derivatives due to an increase in interest rates and losses on equity derivatives of $3 due to an increase in the equity markets, partially offset by gains on credit derivatives of $4 driven by credit spread tightening. Gains for the nine month period gains were primarily due to gains on credit derivatives of $12 driven by credit spread tightening, partially offset by losses of $5 on equity derivatives due to an increase in the equity markets.

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Part I - Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

CRITICAL ACCOUNTING ESTIMATES

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ, and in the past have differed, from those estimates.

The Company has identified the following estimates as critical in that they involve a higher degree of judgment and are subject to a significant degree of variability:

• property and casualty insurance product reserves, net of reinsurance;

• group benefit long-term disability (LTD) reserves, net of reinsurance;

• evaluation of goodwill for impairment;

• valuation of investments and derivative instruments including evaluation of other-than-temporary impairments on available-for-sale securities and valuation allowances on mortgage loans;

• valuation allowance on deferred tax assets; and

• contingencies relating to corporate litigation and regulatory matters.

Certain of these estimates are particularly sensitive to market conditions, and deterioration and/or volatility in the worldwide debt or equity markets could have a material impact on the Condensed Consolidated Financial Statements. In developing these estimates, management makes subjective and complex judgments that are inherently uncertain and subject to material change as facts and circumstances develop. Although variability is inherent in these estimates, management believes the amounts provided are appropriate based upon the facts available upon compilation of the financial statements.

The Company’s critical accounting estimates are discussed in Part II, Item 7 MD&A in the Company’s 2017 Form 10-K Annual Report. In addition, Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements included in the Company's 2017 Form 10-K Annual Report should be read in conjunction with this section to assist with obtaining an understanding of the underlying accounting policies related to these estimates. The following discussion updates certain of the Company’s critical accounting estimates as of September 30, 2018.

Property & Casualty Insurance Product Reserves, Net of Reinsurance

P&C Loss and Loss Adjustment Expense ("LAE") Reserves of $20,017, Net of Reinsurance, by Segment as of September 30, 2018

Based on the results of the quarterly reserve review process, the Company determines the appropriate reserve adjustments, if any, to record. Recorded reserve estimates are adjusted after consideration of numerous factors, including but not limited to, the magnitude of the difference between the actuarial indication and the recorded reserves, improvement or deterioration of actuarial indications in the period, the maturity of the accident year, trends observed over the recent past and the level of volatility within a particular line of business. In general, adjustments are made more quickly to more mature accident years and less volatile lines of business. Such adjustments of reserves are referred to as “prior accident year development”. Increases in previous estimates of ultimate loss costs are referred to as either an increase in prior accident year reserves or as unfavorable reserve development. Decreases in previous estimates of ultimate loss costs are referred to as either a decrease in prior accident year reserves or as favorable reserve development. Reserve development can influence the comparability of year over year underwriting results and is set forth in the paragraphs and tables that follow.

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Rollforward of Property and Casualty Insurance Product Liabilities for Unpaid Losses and LAE for the Nine Months Ended September 30, 2018
	Commercial Lines			Personal Lines			Property & Casualty Other Operations		Total Property & Casualty Insurance
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	$	18,893		$	2,294		$	2,588	$	23,775
Reinsurance and other recoverables	3,147			71			739		3,957
Beginning liabilities for unpaid losses and loss adjustment expenses, net	15,746			2,223			1,849		19,818
Provision for unpaid losses and loss adjustment expenses
Current accident year before catastrophes	3,003			1,688			—		4,691
Current accident year ("CAY") catastrophes	238			222			—		460
Prior accident year development ("PYD")	(145		)	(21		)	27		(139		)
Total provision for unpaid losses and loss adjustment expenses	3,096			1,889			27		5,012
Less: payments	2,676			1,967			170		4,813
Ending liabilities for unpaid losses and loss adjustment expenses, net	16,166			2,145			1,706		20,017
Reinsurance and other recoverables	3,089			21			670		3,780
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	19,255		$	2,166		$	2,376	$	23,797
Earned premiums and fee income	$	5,267		$	2,594
Loss and loss expense paid ratio [1]	50.8			75.8
Loss and loss expense incurred ratio	59.1			73.7
Prior accident year development (pts) [2]	(2.8		)	(0.8		)

[1] The “loss and loss expense paid ratio” represents the ratio of paid losses and loss adjustment expenses to earned premiums.

[2] “Prior accident year development (pts)” represents the ratio of prior accident year development to earned premiums.

Current Accident Year Catastrophe Losses for the Nine Months Ended September 30, 2018, Net of Reinsurance
	Commercial Lines		Personal Lines		Total
Wind and hail	$	118	$	158	$	276
Winter storms	57		22		79
Flooding	1		1		2
Volcanic eruption	—		2		2
Wildfire	2		32		34
Hurricane	59		6		65
Massachusetts gas explosion	1		1		2
Total catastrophe losses	$	238	$	222	$	460

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Unfavorable (Favorable) Prior Accident Year Development for the Three Months Ended September 30, 2018
	Commercial Lines			Personal Lines			Property & Casualty Other Operations		Total Property & Casualty Insurance
Workers’ compensation	$	(24	)	$	—		$	—	$	(24	)
Workers’ compensation discount accretion	10			—			—		10
General liability	4			—			—		4
Package business	(9		)	—			—		(9		)
Commercial property	2			—			—		2
Professional liability	(20		)	—			—		(20		)
Bond	—			—			—		—
Automobile liability	(5		)	(10		)	—		(15		)
Homeowners	—			(7		)	—		(7		)
Net asbestos reserves	—			—			—		—
Net environmental reserves	—			—			—		—
Catastrophes	(11		)	(2		)	—		(13		)
Uncollectible reinsurance	—			—			11		11
Other reserve re-estimates, net	—			1			—		1
Total prior accident year development	$	(53	)	$	(18	)	$	11	$	(60	)

Unfavorable (Favorable) Prior Accident Year Development for the Nine Months Ended September 30, 2018
	Commercial Lines			Personal Lines			Property & Casualty Other Operations		Total Property & Casualty Insurance
Workers’ compensation	$	(97	)	$	—		$	—	$	(97	)
Workers’ compensation discount accretion	30			—			—		30
General liability	32			—			—		32
Package business	(16		)	—			—		(16		)
Commercial property	(10		)	—			—		(10		)
Professional liability	(12		)	—			—		(12		)
Bond	—			—			—		—
Automobile liability	(15		)	(10		)	—		(25		)
Homeowners	—			(20		)	—		(20		)
Net asbestos reserves	—			—			—		—
Net environmental reserves	—			—			—		—
Catastrophes	(63		)	16			—		(47		)
Uncollectible reinsurance	—			—			22		22
Other reserve re-estimates, net	6			(7		)	5		4
Total prior accident year development	$	(145	)	$	(21	)	$	27	$	(139	)

Workers’ compensation reserveswere reduced in small commercial and middle market, primarily for accident years 2012 to 2015, as both claim frequency and medical claim severity have emerged favorably compared to previous reserve estimates.

General liability reserveswere increased, primarily due to an increase in reserves for higher hazard general liability exposures in middle market for accident years 2009 to 2017, partially offset by a decrease in reserves for other lines within

middle market, including premises and operations, umbrella and products liability, principally for accident years 2015 and prior. Contributing to the increase in reserves for higher hazard general liability exposures was an increase in large losses and, in more recent accident years, an increase in claim frequency. Contributing to the reduction in reserves for other middle market lines were more favorable outcomes due to initiatives to reduce legal expenses. In addition, reserve increases for claims with lead

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paint exposure were offset by reserve decreases for other mass torts and extra-contractual liability claims.

Package business reserveswere reduced, primarily due to lower reserve estimates for both liability and property for accident years 2010 and prior, including a recovery of loss adjustment expenses for the 2005 accident year.

Commercial property reserves were reduced, driven by an increase in estimated reinsurance recoverables on middle market property losses from the 2017 accident year.

Professional liability reserves were reduced, principally for accident years 2014 and prior, for directors and officers liability claims principally due to a number of older claims closing with limited or no payment.

Automobile liability reserveswere reduced, primarily driven by reduced estimates of loss adjustment expenses in small commercial for recent accident years and favorable development in personal automobile liability for accident years 2014 to 2017, principally due to lower severity, including with uninsured and underinsured motorist claims.

Homeowners reserveswere reduced, primarily in accident years 2013 to 2017, driven by lower than expected severity across multiple perils.

Catastrophes reserves were reduced, primarily as a result of lower estimated net losses from 2017 catastrophes, principally related to hurricanes Harvey and Irma. Before reinsurance, estimated losses for 2017 catastrophe events decreased by $133 in the nine months ended September 30, 2018, resulting in a decrease in reinsurance recoverables of $90 as the Company no longer expects to recover under the 2017 Property Aggregate reinsurance treaty as aggregate ultimate losses for 2017 catastrophe events are now projected to be less than $850.

Uncollectible reinsurance reserves were increased due to lower anticipated recoveries related to older accident years.

Rollforward of Property and Casualty Insurance Product Liabilities for Unpaid Losses and LAE for the Nine Months Ended September 30, 2017
	Commercial Lines		Personal Lines			Property & Casualty Other Operations		Total Property & Casualty Insurance
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	$	17,950	$	2,094		$	2,501	$	22,545
Reinsurance and other recoverables	3,037		25			426		3,488
Beginning liabilities for unpaid losses and loss adjustment expenses, net	14,913		2,069			2,075		19,057
Provision for unpaid losses and loss adjustment expenses
Current accident year before catastrophes	2,971		1,959			—		4,930
Current accident year catastrophes	404		253			—		657
Prior accident year development	12		(12		)	1		1
Total provision for unpaid losses and loss adjustment expenses	3,387		2,200			1		5,588
Less: payments	2,602		2,118			193		4,913
Ending liabilities for unpaid losses and loss adjustment expenses, net	15,698		2,151			1,883		19,732
Reinsurance and other recoverables	3,095		24			389		3,508
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	18,793	$	2,175		$	2,272	$	23,240
Earned premiums and fee income	$	5,159	$	2,818
Loss and loss expense paid ratio [1]	50.4		75.2
Loss and loss expense incurred ratio	66.0		79.0
Prior accident year development (pts) [2]	0.2		(0.4		)

[1] The “loss and loss expense paid ratio” represents the ratio of paid losses and loss adjustment expenses to earned premiums.

[2] “Prior accident year development (pts)” represents the ratio of prior accident year development to earned premiums.

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Current Accident Year Catastrophe Losses for the Nine Months Ended September 30, 2017, Net of Reinsurance
	Commercial Lines		Personal Lines		Total
Wind and hail	$	137	$	174	$	311
Hurricanes [1]	266		76		342
Winter storms	1		3		4
Total catastrophe losses	$	404	$	253	$	657

[1] Includes catastrophe losses from Hurricane Harvey and Hurricane Irma of $175 and $157, respectively.

Unfavorable (Favorable) Prior Accident Year Development for the Three Months Ended September 30, 2017
	Commercial Lines			Personal Lines		Property & Casualty Other Operations		Total Property & Casualty Insurance
Workers’ compensation	$	(9	)	$	—	$	—	$	(9	)
Workers’ compensation discount accretion	5			—		—		5
Package business	(22		)	—		—		(22		)
Commercial property	1			—		—		1
Bond	20			—		—		20
Catastrophes	1			—		—		1
Other reserve re-estimates, net	1			2		—		3
Total prior accident year development	$	(3	)	$	2	$	—	$	(1	)

Unfavorable (Favorable) Prior Accident Year Development for the Nine Months Ended September 30, 2017
	Commercial Lines			Personal Lines			Property & Casualty Other Operations		Total Property & Casualty Insurance
Workers’ compensation	$	(29	)	$	—		$	—	$	(29	)
Workers’ compensation discount accretion	21			—			—		21
General liability	10			—			—		10
Package business	(22		)	—			—		(22		)
Commercial property	(5		)	—			—		(5		)
Bond	10			—			—		10
Automobile liability	20			—			—		20
Catastrophes	(1		)	(11		)	—		(12		)
Other reserve re-estimates, net	8			(1		)	1		8
Total prior accident year development	$	12		$	(12	)	$	1	$	1

Workers’ compensation reserves were reduced, primarily in small commercial, given the continued emergence of favorable frequency for accident years 2013 to 2015. Management has placed additional weight on this favorable experience as it becomes more credible.

General liability reserves were increased for the 2013 to 2016 accident years on a class of business that insures service and maintenance contractors. This increase was partially offset by a decrease in recent accident year reserves for other middle market general liability reserves.

Package reserveswere reduced for accident years 2013 and prior largely due to reducing the Company's estimate of allocated loss adjustment expenses incurred to settle the claims.

Bond business reservesincreased for customs bonds written between 2000 and 2010 which was partly offset by a reduction in reserves for recent accident years as reported losses for commercial and contract surety have emerged favorably.

Automobile liability reserves within Commercial Lines were increased in small commercial and large national accounts for the 2013 to 2016 accident years, driven by higher frequency of more severe accidents, including litigated claims.

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Catastrophes reserves were reduced primarily due to lower estimates of 2016 wind and hail event losses and a decrease in losses on a 2015 wildfire.

P&C Other Operations Total Reserves, Net of Reinsurance

Asbestos and Environmental Reserves

Reserves for asbestos and environmental ("A&E") are primarily within P&C Other Operations with less significant amounts of A&E reserves included within Commercial Lines and Personal Lines. The following tables include all A&E reserves, including reserves in P&C Other Operations and Commercial Lines and Personal Lines.

Asbestos and Environmental Net Reserves

	Asbestos		Environmental
September 30, 2018
Property and Casualty Other Operations	$	1,022	$	161
Commercial Lines and Personal Lines	68		53
Ending liability — net	$	1,090	$	214
December 31, 2017
Property and Casualty Other Operations	$	1,143	$	182
Commercial Lines and Personal Lines	72		55
Ending liability — net	$	1,215	$	237

Property & Casualty Reserves Asbestos and Environmental Summary as of September 30, 2018

		Asbestos			Environmental			Total A&E
Gross
	Direct	$	1,268		$	300		$	1,568
	Assumed Reinsurance	402			44			446
	Total	1,670			344			2,014
Ceded - other than National Indemnity Company ("NICO")		(397		)	(28		)	(425		)
Ceded - NICO adverse development cover ("ADC ")		(183		)	(102		)	(285		)
Net		$	1,090		$	214		$	1,304

Rollforward of Asbestos and Environmental Losses and LAE for the Nine Months EndedSeptember 30, 2018 and September 30, 2017

	Asbestos		Environmental
2018
Beginning liability—net	$	1,215	$	237
Losses and loss adjustment expenses incurred	—		—
Losses and loss adjustment expenses paid	125		23
Reclassification of allowance for uncollectible reinsurance	—		—
Ending liability – net	$	1,090	$	214
2017
Beginning liability—net	$	1,363	$	292
Losses and loss adjustment expenses paid	111		48
Reclassification of allowance for uncollectible reinsurance [1]	1		—
Ending liability – net	$	1,253	$	244

[1]Related to the reclassification of an allowance for uncollectible reinsurance from the "All Other" category of P&C Other Operations reserves.

The Company classifies its A&E reserves into two categories: Direct and Assumed Reinsurance.

• Direct Insurance- includes primary and excess coverage. Of the two categories of claims, direct policies tend to have the greatest factual development from which to estimate the Company’s exposures.

• Assumed Reinsurance- includes both “treaty” reinsurance (covering broad categories of claims or blocks of business) and “facultative” reinsurance (covering specific risks or individual policies of primary or excess insurance companies). Assumed reinsurance exposures are less predictable than direct insurance exposures because the Company does not generally receive notice of a reinsurance claim until the underlying direct insurance claim is mature. This causes a delay in the receipt of information at the

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reinsurer level and adds to the uncertainty of estimating related reserves.

Adverse Development Cover

Effective December 31, 2016, the Company entered into an A&E ADC reinsurance agreement with NICO, a subsidiary of Berkshire Hathaway Inc., to reduce uncertainty about potential adverse development. Under the ADC, the Company paid a reinsurance premium of $650 for NICO to assume adverse net loss and allocated loss adjustment expense reserve development up to $1.5 billion above the Company’s existing net A&E reserves as of December 31, 2016 of approximately $1.7 billion. The $650 reinsurance premium was placed in a collateral trust account as security for NICO’s claim payment obligations to the Company. The Company has retained the risk of collection on amounts due from other third-party reinsurers and continues to be responsible for claims handling and other administrative services, subject to certain conditions. The ADC covers substantially all the Company’s A&E reserve development up to the reinsurance limit.

Under retroactive reinsurance accounting, net adverse A&E reserve development after December 31, 2016, will result in an offsetting reinsurance recoverable up to the $1.5 billion limit. Cumulative ceded losses up to the $650 reinsurance premium paid are recognized as a dollar-for-dollar offset to direct losses incurred. Cumulative ceded losses exceeding the $650 reinsurance premium paid would result in a deferred gain.  The deferred gain would be recognized over the claim settlement period in the proportion of the amount of cumulative ceded losses collected from the reinsurer to the estimated ultimate reinsurance recoveries. Consequently, until periods when the deferred gain is recognized as a benefit to earnings, cumulative adverse development of A&E claims after December 31, 2016 in excess of $650 may result in significant charges against earnings.

As of September 30, 2018, the Company has incurred a cumulative $285 in adverse development on A&E reserves that have been ceded under the ADC treaty with NICO, leaving approximately $1.2 billion of coverage available for future adverse net reserve development, if any.

Net and Gross Survival Ratios

Net and Gross survival ratios are a measure of the quotient of the carried reserves divided by average annual payments (net of reinsurance and on a gross basis) and is an indication of the number of years that carried reserves would last (i.e. survive) if future annual payments were consistent with the calculated historical average.

The survival ratios shown below are calculated for the one and three year periods ended September 30, 2018. The net basis survival ratio has been materially affected by the ADC entered into between the Company and NICO. The Company cedes adverse A&E development in excess of its December 31, 2016 net carried reserves of $1.7 billion to NICO up to a limit of $1.5 billion. Since December 31, 2016, net reserves for A&E have been declining as the Company has had no net incurred losses but continues to pay down net loss reserves. This has the effect of reducing the one- and three-year net survival ratios shown in the table below. For asbestos, the table also presents the three-year net survival ratios excluding the effect of the PPG Industries, Inc. ("PPG") settlement in 2016. For further discussion of the PPG settlement, see Part II, Item 7 MD&A, Critical Accounting

Estimates, Annual Reserves Reviews section in the Company’s 2017 Form 10-K Annual Report.

Net and Gross Survival Ratios

	Asbestos	Environmental
One year net survival ratio	6.7	6.9
Three year net survival ratio- excluding PPG settlement	6.6	4.3
One year gross survival ratio	7.3	8.0
Three year gross survival ratio - excluding PPG settlement	7.7	5.8

Asbestos and Environmental Paid and Incurred Losses and LAE Development for the Nine Months EndedSeptember 30, 2018

	Asbestos					Environmental
	Paid Losses &  LAE			Incurred Losses &  LAE		Paid Losses &  LAE			Incurred Losses &  LAE
Gross	$	168		$	—	$	35		$	—
Ceded- other than NICO	(43		)	—		(12		)	—
Ceded - NICO ADC	—			—		—			—
Net	$	125		$	—	$	23		$	—

Annual Reserve Reviews

Review of Asbestos Reserves

In 2018, the Company expects to perform its regular comprehensive annual review of asbestos reserves in the fourth quarter.

As part of its evaluation in the fourth quarter of 2017, the Company reviewed all of its open direct domestic insurance accounts exposed to asbestos liability, as well as assumed reinsurance accounts. Based on this evaluation, the Company increased its net asbestos reserves for prior year development by $183 in the fourth quarter of 2017 which was offset by $183 of ceded losses under the ADC agreement.

Review of Environmental Reserves

In 2018, the Company expects to perform its regular comprehensive annual review of environmental reserves in the fourth quarter.

As part of its evaluation in the fourth quarter of 2017, the Company reviewed all of its open direct domestic insurance accounts exposed to environmental liability, as well as assumed reinsurance accounts. Based on this evaluation, the Company increased its net environmental reserves for prior year development by $102 in the fourth quarter 2017 which was offset by $102 of ceded losses under the ADC agreement.

2017 Reserve Reviews

For a discussion of the Company's 2017 comprehensive annual review of A&E reserves, see Part II, Item 7 MD&A, Critical

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Accounting Estimates, Annual Reserves Reviews section in the Company’s 2017 Form 10-K Annual Report.

Uncertainties Regarding Adequacy of Asbestos and Environmental Reserves

A number of factors affect the variability of estimates for A&E reserves before considering the effect of the reinsurance agreement with NICO, including assumptions with respect to the frequency of claims, the average severity of those claims settled with payment, the dismissal rate of claims with no payment, resolution of coverage disputes with our policyholders and the expense to indemnity ratio. The uncertainty with respect to the underlying reserve assumptions for A&E adds a greater degree of variability to these reserve estimates than reserve estimates for more traditional exposures.

As of September 30, 2018, the Company reported $1.1 billion of net asbestos reserves and $214 of net environmental reserves. The Company believes that its current A&E reserves are appropriate. However, analyses of future developments could cause The Hartford to change its estimates of its A&E reserves. As discussed above, the effect of these changes could be material to the Company's liquidity and, if cumulative adverse development subsequent to December 31, 2016 exceeded $650, the effect of the changes could be material to the Company's consolidated operating results. The process of estimating A&E reserves remains subject to a wide variety of uncertainties, which are detailed in the Company's 2017 Form 10-K Annual Report.

Consistent with the Company's long-standing reserve practices, the Company will continue to review and monitor its reserves in Property & Casualty Other Operations regularly, including its annual reviews of asbestos liabilities, reinsurance recoverables and the allowance for uncollectible reinsurance, and environmental liabilities, and where future developments indicate, make appropriate adjustments to the reserves. For a discussion of the Company's reserving practices, see MD&A - Critical Accounting Estimates, Property & Casualty Insurance Product Reserves, Net of Reinsurance in the Company's 2017 Form 10-K Annual Report.

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SEGMENT OPERATING SUMMARIES

COMMERCIAL LINES

Results of Operations

Underwriting Summary

	Three Months Ended September 30,								Nine Months Ended September 30,
	2018			2017			Change		2018			2017		Change
Written premiums	$	1,751		$	1,702		3	%	$	5,336		$	5,229	2	%
Change in unearned premium reserve	(34		)	(21		)	(62	%)	95			98		(3	%)
Earned premiums	1,785			1,723			4	%	5,241			5,131		2	%
Fee income	9			9			—	%	26			28		(7	%)
Losses and loss adjustment expenses
Current accident year before catastrophes	1,055			1,009			5	%	3,003			2,971		1	%
Current accident year catastrophes [1]	95			270			(65	%)	238			404		(41	%)
Prior accident year development [1]	(53		)	(3		)	NM		(145		)	12		NM
Total losses and loss adjustment expenses	1,097			1,276			(14	%)	3,096			3,387		(9	%)
Amortization of deferred policy acquisition costs	264			253			4	%	780			754		3	%
Underwriting expenses	353			348			1	%	1,013			995		2	%
Amortization of other intangible assets	2			—			NM		3			—		NM
Dividends to policyholders	8			4			100	%	18			11		64	%
Underwriting gain (loss)	70			(149		)	147	%	357			12		NM
Net servicing income	(1		)	1			NM		—			2		(100	%)
Net investment income [2]	250			241			4	%	750			724		4	%
Net realized capital gains [2]	29			13			123	%	63			56		13	%
Other income (expenses)	2			(1		)	NM		1			—		NM
Income before income taxes	350			105			NM		1,171			794		47	%
Income tax expense [3]	61			15			NM		212			215		(1	%)
Net income	$	289		$	90		NM		$	959		$	579	66	%

[1] For discussion of current accident year catastrophes and prior accident year development, see MD&A - Critical Accounting Estimates, Property and Casualty Insurance Product Reserves, Net of Reinsurance.

[2] For discussion of consolidated investment results, see MD&A - Investment Results.

[3] For discussion of income taxes, see Note 12 - Income Taxes of Notes to Condensed Consolidated Financial Statements.

Premium Measures [1]

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
New business premium	$	314		$	274		$	969		$	864
Standard commercial lines policy count retention	83		%	83		%	82		%	84		%
Standard commercial lines renewal written price increase	1.7		%	3.4		%	2.4		%	3.3		%
Standard commercial lines renewal earned price increase	2.9		%	3.0		%	3.1		%	2.7		%
Standard commercial lines policies in-force as of end of period (in thousands)							1,333			1,341

[1] Standard commercial lines consists of small commercial and middle market. Standard commercial premium measures exclude Maxum, higher hazard general liability in middle market and livestock lines of business.

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Underwriting Ratios

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018		2017		Change		2018		2017	Change
Loss and loss adjustment expense ratio
Current accident year before catastrophes	59.1		58.6		0.5		57.3		57.9	(0.6	)
Current accident year catastrophes	5.3		15.7		(10.4	)	4.5		7.9	(3.4	)
Prior accident year development	(3.0	)	(0.2	)	(2.8	)	(2.8	)	0.2	(3.0	)
Total loss and loss adjustment expense ratio	61.5		74.1		(12.6	)	59.1		66.0	(6.9	)
Expense ratio	34.2		34.4		(0.2	)	33.8		33.5	0.3
Policyholder dividend ratio	0.4		0.2		0.2		0.3		0.2	0.1
Combined ratio	96.1		108.6		(12.5	)	93.2		99.8	(6.6	)
Current accident year catastrophes and prior year development	2.3		15.5		(13.2	)	1.7		8.1	(6.4	)
Underlying combined ratio	93.7		93.2		0.5		91.4		91.7	(0.3	)

Net Income

Three and nine months endedSeptember 30, 2018 compared to the three and nine months endedSeptember 30, 2017

Net incomein 2018 for the three month period increased due to a change from an underwriting loss to an underwriting gain, a lower corporate Federal income tax rate and, to a lesser extent, an increase in net realized capital gains and net investment income. (For further discussion of investment results, see MD&A - Investment Results)

Net incomein 2018 for the nine month period increased due to a higher underwriting gain, a lower corporate Federal income tax rate and, to a lesser extent, an increase in net investment income. (For further discussion of investment results, see MD&A - Investment Results)

Underwriting Gain (Loss)

Three and nine months endedSeptember 30, 2018 compared to the three and nine months endedSeptember 30, 2017

Underwriting gain (loss)changed from an underwriting loss to an underwriting gain for the three month period in 2018 compared to the three month period in 2017 primarily due to lower current accident year catastrophes, more favorable prior accident year reserve development and higher earned premium, partially offset by higher underwriting expenses.

Underwriting gainincreased for the nine month period primarily due to lower current accident year catastrophes, a change from unfavorable prior accident year reserve development in 2017 to favorable development in 2018, higher earned premium and a lower current accident year loss and loss adjustment expense ratio before catastrophes, primarily related to lower loss costs for general liability and automobile. Partially offsetting the increase were higher underwriting expenses and a higher current accident year loss and loss adjustment expense ratio for workers' compensation.

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Earned Premiums

[1]Other of $11 and $12 for the three months endedSeptember 30, 2017, and 2018, respectively, and $35 and for both the nine months ended September 30,2017, and 2018, respectively, is included in the total.

Three and nine months endedSeptember 30, 2018 compared to the three and nine months endedSeptember 30, 2017

Earned premiums increased in both the three and nine month periods reflecting written premium growth over the preceding twelve months.

Written premiumsincreased in both the three and nine month periods due to growth in middle market and small commercial and, for the nine month period, growth in specialty commercial, principally in financial products and bond. In standard commercial lines, renewal written price increases declined in the third quarter of 2018, mostly attributable to bigger rate decreases in Small Commercial workers' compensation. New business and renewal written premium increased across most lines of business except for a decline in workers' compensation.

• Small commercial written premium increased for the three month period primarily due to higher new business, primarily driven by the business acquired under a renewal rights

agreement with Farmers Group to acquire its Foremost-branded small commercial business. For the nine month period, the increase in new business premium was largely offset by the decline in renewal premium. For the nine month period, the decline in renewal premium was driven by the effect of lower policy retention, partially offset by renewal written price increases.

• Middle market written premium growth for both the three and nine month periods was primarily due to strong new business growth.

• Specialty commercial written premium was flat for the three month period. The increase for the nine month period was driven by growth in financial products and bond.

Loss and LAE Ratio before Catastrophes and Prior Accident Year Development

Three and nine months endedSeptember 30, 2018 compared to the three and nine months endedSeptember 30, 2017

Loss and LAE ratio before catastrophes and prior accident year developmentincreased for the three month period primarily due to a higher loss and loss adjustment expense ratio in workers' compensation due to increased claim frequency and an increase in non-catastrophe property losses, partially offset by a lower loss and loss adjustment expense ratio in general liability and automobile.

Loss and LAE ratio before catastrophes and prior accident year developmentdecreased slightly for the nine month month period primarily due to a lower loss and loss adjustment expense ratio in general liability and automobile, largely offset by a higher loss and loss adjustment expense ratio in workers' compensation, principally due to higher claim frequency.

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Current Accident Year Catastrophes and Unfavorable (Favorable) Prior Accident Year Development

Three and nine months endedSeptember 30, 2018 compared to the three and nine months endedSeptember 30, 2017

Current accident year catastrophe lossestotaled $95, before tax, for the three month period in 2018 compared to $270, before tax, for the three month period in 2017. Catastrophe losses for the three month 2018 period were primarily due to wind and hail events in Colorado and hurricane

Florence. Catastrophe losses for the three month 2017 period were primarily from hurricanes Harvey and Irma.

Current accident year catastrophe lossestotaled $238 before tax, for the nine month period in 2018, compared to $404, before tax, for the nine month period in 2017. Catastrophe losses for the nine month 2018 period were primarily due to multiple wind and hail events in Colorado, the Midwest, South and Mid-Atlantic and hurricane Florence as well as winter storms on the east coast. Catastrophe losses for the nine month 2017 period were primarily from Hurricanes Harvey and Irma, but also included wind and hail events in the Midwest, Texas and Colorado.

Prior accident year developmentwas a net favorable $53 for the three month period in 2018, compared with $3 of net favorable prior accident year development for the three month period in 2017, and was a net favorable $145 for the nine month period in 2018 compared to unfavorable prior accident year development of $12, before tax, for the nine month period in 2017. Net reserve decreases for the three month 2018 period were primarily related to decreases in reserves for workers' compensation, professional liability and the 2017 hurricanes. Net reserve decreases for the nine month 2018 period were primarily related to decreases for workers' compensation and catastrophe reserves. Estimated losses for 2017 catastrophe events in Commercial Lines decreased by $93 in the nine month 2018 period resulting in a decrease in reinsurance recoverables of $43 as the Company no longer expects to recover under the 2017 Property Aggregate reinsurance treaty.

Net reserve decreases for the three month 2017 period were primarily related to reductions in package business and workers' compensation reserves, partially offset by an increase in bond reserves.

Net reserve increases for the nine month 2017 period were primarily related to commercial automobile liability, general liability, and bond, largely offset by a decrease in reserves for package business.

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PERSONAL LINES

Results of Operations

Underwriting Summary

	Three Months Ended September 30,								Nine Months Ended September 30,
	2018			2017			Change		2018			2017			Change
Written premiums	$	854		$	924		(8	%)	$	2,518		$	2,738		(8	%)
Change in unearned premium reserve	5			3			67	%	(46		)	(47		)	2	%
Earned premiums	849			921			(8	%)	2,564			2,785			(8	%)
Fee income	10			11			(9	%)	30			33			(9	%)
Losses and loss adjustment expenses
Current accident year before catastrophes	565			663			(15	%)	1,688			1,959			(14	%)
Current accident year catastrophes [1]	74			82			(10	%)	222			253			(12	%)
Prior accident year development [1]	(18		)	2			NM		(21		)	(12		)	(75	%)
Total losses and loss adjustment expenses	621			747			(17	%)	1,889			2,200			(14	%)
Amortization of DAC	68			76			(11	%)	209			236			(11	%)
Underwriting expenses	155			145			7	%	454			422			8	%
Amortization of other intangible assets	1			1			—	%	3			3			—	%
Underwriting gain (loss)	14			(37		)	138	%	39			(43		)	191	%
Net servicing income [2]	5			4			25	%	13			11			18	%
Net investment income [3]	39			36			8	%	116			107			8	%
Net realized capital gains [3]	5			2			150	%	10			9			11	%
Other income	1			3			(67	%)	1			1			—	%
Income before income taxes	64			8			NM		179			85			111	%
Income tax expense [4]	13			—			NM		33			20			65	%
Net income	$	51		$	8		NM		$	146		$	65		125	%

[1] For discussion of current accident year catastrophes and prior accident year development, see MD&A - Critical Accounting Estimates, Property & Casualty Insurance Product Reserves, Net of Reinsurance.

[2] Includes servicing revenues of $24 for the three months ended September 30,2018 and 2017 and $66 for the nine months ended September 30,2018 and 2017. Includes servicing expenses of $19 and $53 for the three and nine months endedSeptember 30,2018, respectively, and $20 and $55 for the three and nine months endedSeptember 30,2017, respectively.

[3] For discussion of consolidated investment results, see MD&A - Investment Results.

[4] For discussion of income taxes, see Note 12 - Income Taxes of Notes to Condensed Consolidated Financial Statements.

Written and Earned Premiums

	Three Months Ended September 30,						Nine Months Ended September 30,
Written Premiums	2018		2017		Change		2018		2017		Change
Product Line
Automobile	$	583	$	636	(8	%)	$	1,750	$	1,919	(9	%)
Homeowners	271		288		(6	%)	768		819		(6	%)
Total	$	854	$	924	(8	%)	$	2,518	$	2,738	(8	%)
Earned Premiums
Product Line
Automobile	$	591	$	644	(8	%)	$	1,787	$	1,950	(8	%)
Homeowners	258		277		(7	%)	777		835		(7	%)
Total	$	849	$	921	(8	%)	$	2,564	$	2,785	(8	%)

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Premium Measures

	Three Months Ended September 30,						Nine Months Ended September 30,
Premium Measures	2018			2017			2018			2017
Policies in-force end of period (in thousands)
Automobile							1,547			1,768
Homeowners							948			1,071
New business written premium
Automobile	$	47		$	37		$	126		$	117
Homeowners	$	12		$	11		$	32		$	35
Policy count retention
Automobile	83		%	80		%	82		%	81		%
Homeowners	83		%	83		%	83		%	82		%
Renewal written price increase
Automobile	6.1		%	11.8		%	7.9		%	10.8		%
Homeowners	10.0		%	8.5		%	10.0		%	8.8		%
Renewal earned price increase
Automobile	9.3		%	10.1		%	10.1		%	9.1		%
Homeowners	9.6		%	8.7		%	9.2		%	8.4		%

Underwriting Ratios

	Three Months Ended September 30,					Nine Months Ended September 30,
Underwriting Ratios	2018		2017	Change		2018		2017		Change
Loss and loss adjustment expense ratio
Current accident year before catastrophes	66.5		72.0	(5.5	)	65.8		70.3		(4.5	)
Current accident year catastrophes	8.7		8.9	(0.2	)	8.7		9.1		(0.4	)
Prior year development	(2.1	)	0.2	(2.3	)	(0.8	)	(0.4	)	(0.4	)
Total loss and loss adjustment expense ratio	73.1		81.1	(8.0	)	73.7		79.0		(5.3	)
Expense ratio	25.2		22.9	2.3		24.8		22.5		2.3
Combined ratio	98.4		104.0	(5.6	)	98.5		101.5		(3.0	)
Current accident year catastrophes and prior year development	6.6		9.1	(2.5	)	7.9		8.7		(0.8	)
Underlying combined ratio	91.8		94.9	(3.1	)	90.6		92.9		(2.3	)

Product Combined Ratios

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018	2017	Change		2018	2017	Change
Automobile
Combined ratio	98.9	106.3	(7.4	)	97.2	101.5	(4.3	)
Underlying combined ratio	98.5	101.6	(3.1	)	96.4	99.1	(2.7	)
Homeowners
Combined ratio	96.9	97.9	(1.0	)	101.5	101.6	(0.1	)
Underlying combined ratio	76.3	78.9	(2.6	)	77.2	78.4	(1.2	)

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Part I - Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Net Income

Three and nine months endedSeptember 30, 2018 compared to the three and nine months endedSeptember 30, 2017

Net incomein 2018 increased for the three and nine month periods primarily due to a change from an underwriting loss to an underwriting gain, the effect of a lower Federal income tax rate and, to a lesser extent, higher net investment income.

Underwriting Gain (Loss)

Three and nine months endedSeptember 30, 2018 compared to the three and nine months endedSeptember 30, 2017

Underwriting gain (loss)changed from an underwriting loss to an underwriting gain in both the three month and nine month periodsprimarily due to a lower current accident year loss and loss adjustment expense ratio before catastrophes in both auto and homeowners, lower current accident year catastrophes, and more favorable prior accident year reserve development, partially offset by higher expenses and the effect of lower earned premium. The increase in expenses was largely driven by an

increase in direct marketing spending, selling expenses, and operational costs to generate new business.

Earned Premiums

Three and nine months endedSeptember 30, 2018 compared to the three and nine months endedSeptember 30, 2017

Earned premiums decreased in 2018, reflecting a decline in written premium over the prior six to twelve months in both agency channels and in AARP Direct.

Written premiums decreased in 2018 in both agency channels and in AARP Direct primarily due to not generating enough new business to offset the loss of non-renewed premium.

Renewal written pricing increases in 2018 were higher in homeowners and have decreased in automobile with mid single-digit price increases in automobile in the third quarter of 2018 and low double-digit price increases in homeowners driven by actions taken to improve profitability.

Policy count retention increased in automobile in both the three month and nine month periods as renewal written pricing increases decreased. Policy count retention in homeowners was flat for the three month period and increased for the nine month period despite higher renewal written price increases.

Policies in-forcedecreased in 2018 in both automobile and homeowners, driven by low new business and low policy count retention.

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Part I - Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Loss and LAE Ratio before Catastrophes and Prior Accident Year Development

Three and nine months endedSeptember 30, 2018 compared to the three and nine months endedSeptember 30, 2017

Loss and LAE ratio before catastrophes and prior accident year development decreased in both the three and nine month periods in 2018, primarily due to the effect of earned pricing increases in both the automobile and homeowners lines and lower non-catastrophe weather-related homeowners loss costs.

Current Accident Year Catastrophes and Unfavorable (Favorable) Prior Accident Year Development

Three and nine months endedSeptember 30, 2018 compared to the three and nine months endedSeptember 30, 2017

Current accident year catastrophe lossesfor the three month 2018 period were from catastrophe events across the country, principally wildfires in California and Colorado, wind and hail storms in Colorado and wind storms in the Midwest, Midatlantic and Northeast. Catastrophe losses for three month 2017 period were primarily due to hurricanes Harvey and Irma. Catastrophe losses for the nine month 2018 period included multiple wind and hail events across the Mountain West, Midwest, South, and Northeast and wildfires in California and Colorado as well as from east coast winter storms. Catastrophe losses for the nine month 2017 period were primarily due to hurricanes Harvey and Irma as well as multiple wind and hail events across various U.S. geographic regions, concentrated in Texas, Colorado, the Midwest and the Southeast.

Prior accident year development was favorable in the 2018 three month period primarily due to decreases in reserves for both auto liability and homeowners related to recent accident years.Prior accident year development for the 2018 nine month period included decreases in reserves for auto liability and for homeowners partially offset by increases in reserves for prior accident year catastrophes. Estimated losses

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Part I - Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

for 2017 catastrophe events in Personal Lines decreased by $30 in the 2018 nine month period, resulting in a decrease in reinsurance recoverables of $47, as the Company no longer expects to recover under the 2017 Property Aggregate

reinsurance treaty. Prior accident year development for the three and nine month periods in 2017 primarily included a decrease in reserves for catastrophes.

PROPERTY & CASUALTY OTHER OPERATIONS

Results of Operations

Underwriting Summary

	Three Months Ended September 30,								Nine months ended September 30,
	2018			2017			Change		2018			2017			Change
Losses and loss adjustment expenses
Prior accident year development [1]	11			—			NM		$	27		$	1		NM
Total losses and loss adjustment expenses	11			—			NM		27			1			NM
Underwriting expenses	3			3			—	%	9			11			(18	%)
Underwriting loss	(14		)	(3		)	NM		(36		)	(12		)	NM
Net investment income [2]	22			26			(15	%)	68			84			(19	%)
Net realized capital gains [2]	3			1			NM		5			10			(50	%)
Other income	—			2			(100	%)	—			4			(100	%)
Income before income taxes	11			26			(58	%)	37			86			(57	%)
Income tax expense [3]	2			8			(75	%)	6			24			(75	%)
Net income	$	9		$	18		(50	%)	$	31		$	62		(50	%)

[1]For discussion of prior accident year development, see MD&A - Critical Accounting Estimates, Property & Casualty Insurance Product Reserves, Net of Reinsurance.

[2]For discussion of consolidated investment results, see MD&A - Investment Results.

[3]For discussion of income taxes, see Note 12 - Income Taxes of Notes to Condensed Consolidated Financial Statements.

Net Income

Three and nine months endedSeptember 30, 2018 compared to the three and nine months endedSeptember 30, 2017

Net Income decreased for the three months, primarily due to prior accident year reserve increases for the allowance for uncollectible reinsurance. Net income decreased for the nine month period due to reserve increases for the allowance for uncollectible reinsurance and certain mass torts as well as lower net investment income.

Underwriting lossincreased for both periods, primarily due to unfavorable prior accident year development.

Comprehensive annual reserve reviews of A&E will occur in the fourth quarter of 2018. For information on A&E reserves, see MD&A - Critical Accounting Estimates, Asbestos and Environmental Reserves.

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GROUP BENEFITS

Results of Operations

Operating Summary
	Three Months Ended September 30,							Nine months ended September 30,
	2018			2017		Change		2018			2017		Change
Premiums and other considerations	$	1,396		$	822	70	%	$	4,198		$	2,481	69	%
Net investment income [1]	117			95		23	%	353			278		27	%
Net realized capital gains (losses) [1]	(3		)	9		(133	%)	(26		)	30		(187	%)
Total revenues	1,510			926		63	%	4,525			2,789		62	%
Benefits, losses and loss adjustment expenses	1,054			614		72	%	3,198			1,893		69	%
Amortization of DAC	12			8		50	%	33			24		38	%
Insurance operating costs and other expenses	319			204		56	%	957			617		55	%
Amortization of other intangible assets	15			—		NM		48			—		NM
Total benefits, losses and expenses	1,400			826		69	%	4,236			2,534		67	%
Income before income taxes	110			100		10	%	289			255		13	%
Income tax expense [2]	33			29		14	%	62			70		(11	%)
Net income	$	77		$	71	8	%	$	227		$	185	23	%

[1] For discussion of consolidated investment results, see MD&A - Investment Results.

[2] For discussion of income taxes, see Note 12 - Income Taxes of Notes to the Consolidated Financial Statements.

Premiums and Other Considerations
	Three Months Ended September 30,						Nine months ended September 30,
	2018		2017		Change		2018		2017		Change
Fully insured – ongoing premiums	$	1,353	$	803	68	%	$	4,062	$	2,410	69	%
Buyout premiums	—		—		—	%	5		14		(64	%)
Fee income	43		19		126	%	131		57		130	%
Total premiums and other considerations	$	1,396	$	822	70	%	$	4,198	$	2,481	69	%
Fully insured ongoing sales, excluding buyouts	$	104	$	68	53	%	$	643	$	346	86	%

Ratios, Excluding Buyouts
	Three Months Ended September 30,					Nine months ended September 30,
	2018		2017		Change	2018		2017		Change
Group disability loss ratio	75.9	%	73.0	%	2.9	75.0	%	78.3	%	(3.3)
Group life loss ratio	76.6	%	77.7	%	(1.1)	78.3	%	75.0	%	3.3
Total loss ratio	75.5	%	74.7	%	0.8	76.2	%	76.2	%	0.0
Expense ratio [1]	23.9	%	25.8	%	(1.9)	23.9	%	26.0	%	(2.1)

[1] Integration and transaction costs related to the acquisition of Aetna's U.S. group life and disability business are not included in the expense ratio.

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Part I - Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Margin
	Three Months Ended September 30,						Nine months ended September 30,
	2018		2017		Change		2018		2017		Change
Net income margin	5.1	%	7.7	%	(2.6	)	5.0	%	6.7	%	(1.7	)
Less: Net realized capital gains (losses) excluded from core earnings, after tax	(0.1	%)	0.5	%	(0.6	)	(0.5	%)	0.6	%	(1.1	)
Less: Integration and transaction costs associated with acquired business, after tax	(0.6	%)	—	%	(0.6	)	(0.6	%)	—	%	(0.6	)
Less: Income tax benefit	(0.9	%)	—	%	(0.9	)	(0.3	%)	—	%	(0.3	)
Core earnings margin	6.7	%	7.2	%	(0.5	)	6.4	%	6.1	%	0.3

Net Income

Three and nine months endedSeptember 30, 2018compared to thethree and nine months endedSeptember 30, 2017

Net incomeincreased for both the three and nine month periods, primarily due to higher premiums and other considerations and higher net investment income, including from the acquisition of Aetna's U.S. group life and disability business, and the benefit of a lower corporate income tax rate, partially offset by higher insurance operating costs and other expenses, including integration costs, and amortization of intangible assets in connection with the acquisition. For both periods, the benefit of the lower corporate income tax rate was partially offset by $14 of additional tax expense that was primarily driven by the effect of the lower rate on deferred tax assets due to the filing of the Company's 2017 Federal income tax return and finalization of the opening balance sheet for the Aetna Group Benefits acquisition. Also driving the increase in net income was lower group life mortality for the three month period and favorable disability loss trends for the nine month period, including from favorable prior incurral year development.

Insurance operating costs and other expenses for the three and nine month periods increased primarily due to the acquisition of Aetna's U.S. group life and disability business, including integration costs and amortization of intangible assets. For the nine months ended September 30, 2018, the increase was partially offset by state guaranty fund

assessments incurred in the first quarter 2017 related to the liquidation of a life and health insurance company.

Fully Insured Ongoing Premiums

[1] Other of $53 and $60 is included in the three months endedSeptember 30, 2017, and 2018, respectively, and $159 and $179 for the nine months endedSeptember 30, 2017, and 2018, respectively is included in the total.

Three and nine months endedSeptember 30, 2018compared to thethree and nine months endedSeptember 30, 2017

Fully insured ongoing premiums increased 68% and 69%, respectively, for the three and nine month 2018 periods driven primarily by the acquisition of Aetna's U.S. group life and disability business, sales in excess of cancellations, strong group life and disability persistency and premium from the New York Paid Family Leave product.

Fully insured ongoing sales, excluding buyouts for the three and nine month periods increased 53% and 86%, respectively, primarily due to new business generated by our larger combined sales force following the acquisition of Aetna's U.S. group life and disability business. The Company also saw an increase in the sale of voluntary products and fully insured sales in disability in 2018 due, in part, to the addition of a new New York Paid Family Leave product.

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Ratios

Three and nine months endedSeptember 30, 2018 compared to the three and nine months endedSeptember 30, 2017

Total loss ratioincreased 0.8 points for the three month period. For the nine month period, the total loss ratio was flat year over year as a decrease in the group disability loss ratio was offset by an increase in the group life loss ratio. The group life loss

ratio decreased 1.1 points for the three month period and increased 3.3 points for the nine month period. In the three month period, mortality continued to moderate from the higher mortality experienced in the first quarter of 2018 and improved from the comparable 2017 three month period.  Both the three and nine month periods also include higher 2018 expected loss ratios associated with the business from the Aetna acquisition.

The group disability loss ratio increased 2.9 points for the three month period and decreased 3.3 points for the nine month period with favorable incidence in both the three and nine month periods. Recoveries were unusually favorable in the three month period in 2017 largely due to a high number of death terminations. In addition, for both the three and nine month periods, the group disability loss ratio reflects a lower 2018 expected discount accretion on reserves acquired with Aetna's group disability business.

Expense ratio decreased 1.9 points and 2.1 points, respectively, for the three and nine month 2018 periods. The decline was driven by a greater mix of lower commission national accounts business due to the acquisition of Aetna's U.S. group life and disability business, higher revenues to cover fixed costs and, for the nine month period, the effect of state guaranty fund assessments in 2017 related to the liquidation of a life and health insurance company, partially offset by intangible asset amortization incurred in 2018.

MUTUAL FUNDS

Results of Operations

Operating Summary

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018		2017		Change		2018			2017		Change
Fee income and other revenue	$	267	$	251	6	%	$	786		$	735	7	%
Net investment income	1		1		—	%	3			2		50	%
Net realized capital losses	—		—		—	%	(1		)	—		NM
Total revenues	268		252		6	%	788			737		7	%
Amortization of DAC	4		5		(20	%)	12			16		(25	%)
Operating costs and other expenses [1]	212		207		2	%	635			608		4	%
Total benefits, losses and expenses	216		212		2	%	647			624		4	%
Income before income taxes	52		40		30	%	141			113		25	%
Income tax expense	11		14		(21	%)	29			40		(28	%)
Net income	$	41	$	26	58	%	$	112		$	73	53	%
Daily average total Mutual Funds segment AUM	$	119,897	$	109,640	9	%	$	118,098		$	105,491	12	%
Return on Assets ("ROA") [2]
Net income	13.6		9.5		43	%	12.7			9.3		37	%
Core Earnings	13.6		9.5		43	%	12.8			9.3		38	%

[1] Includes distribution costs of $48 and $140 for the three and nine months ended September 30,2017, respectively, that were previously netted against fee income and are now presented gross in insurance operating costs and other expenses.

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

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Part I - Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Mutual Funds Segment AUM

	Three Months Ended September 30,								Nine Months Ended September 30,
	2018			2017 [1]			Change		2018			2017 [1]			Change
Mutual Fund and ETP AUM - beginning of period	$	101,665		$	91,581		11	%	$	99,090		$	81,507		22	%
Sales - mutual fund	5,176			5,364			(4	%)	16,605			18,830			(12	%)
Redemptions - mutual fund	(5,192		)	(4,597		)	(13	%)	(15,892		)	(15,416		)	(3	%)
Net flows - ETP	261			60			NM		683			115			NM
Net flows - mutual fund and ETP	245			827			(70	%)	1,396			3,529			(60	%)
Change in market value and other	3,623			3,189			14	%	5,047			10,561			(52	%)
Mutual fund and ETP AUM - end of period	105,533			95,597			10	%	105,533			95,597			10	%
Talcott Resolution life and annuity separate account AUM [2]	15,543			16,127			(4	%)	15,543			16,127			(4	%)
Total Mutual Funds segment AUM	$	121,076		$	111,724		8	%	$	121,076		$	111,724		8	%

[1]ETP AUM has been combined with mutual fund AUM. Previously ETPs were shown separately.

[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.

Mutual Fund and ETP AUM by Asset Class

	September 30, 2018		September 30, 2017		Change
Equity	$	69,463	$	61,163	14	%
Fixed Income	14,831		14,454		3	%
Multi-Strategy Investments [1]	20,062		19,571		3	%
Exchange-traded Products	1,177		409		188	%
Mutual Fund and ETP AUM	$	105,533	$	95,597	10	%

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

Net Income

Three and nine months endedSeptember 30, 2018 compared to the three and nine months endedSeptember 30, 2017

Net incomefor both the three and nine month periods increased compared to the prior year due to higher investment management fees, partially offset by higher variable costs, including sub-advisory and distribution and services expenses. Also contributing to the increase was the effect of a lower corporate Federal income tax rate.

Total Mutual Funds Segment AUM

Three and nine months endedSeptember 30, 2018compared to thethree and nine months endedSeptember 30, 2017

Total Mutual Funds segment AUM increased in 2018 primarily resulting from positive net flows and market appreciation. The increase in Mutual Fund business AUM was partially offset by the continued runoff of AUM still managed by the Company that is related to the Talcott Resolution life and annuity business sold in May, 2018.

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CORPORATE

Results of Operations

Operating Summary

	Three Months Ended September 30,								Nine Months Ended September 30,
	2018			2017			Change		2018			2017			Change
Fee income	$	15		$	1		NM		$	21		$	2		NM
Other revenue	6			—			NM		8			—			NM
Net investment income	15			5			NM		33			14			136	%
Net realized capital gains	4			1			NM		9			—			NM
Total revenues	40			7			NM		71			16			NM
Benefits, losses and loss adjustment expenses [1]	3			—			NM		9			—			NM
Insurance operating costs and other expenses	25			26			(4	%)	59			60			(2	%)
Amortization of other intangible assets	—			—			—	%	—			—			—	%
Pension settlement	—			—			—	%	—			750			(100	%)
Loss on extinguishment of debt [2]	—			—			—	%	6			—			NM
Interest expense [2]	69			79			(13	%)	228			238			(4	%)
Total benefits, losses and expenses	97			105			(8	%)	302			1,048			(71	%)
Loss before income taxes	(57		)	(98		)	42	%	(231		)	(1,032		)	78	%
Income tax benefit [3]	(17		)	(30		)	43	%	(45		)	(364		)	88	%
Loss from continuing operations, net of tax	(40		)	(68		)	(41	%)	(186		)	(668		)	(72	%)
Income from discontinued operations, net of tax	5			89			(94	%)	322			276			17	%
Net income (loss)	$	(35	)	$	21		NM		$	136		$	(392	)	135	%

[1] Represents benefits expense on life and annuity business previously underwritten by the Company.

[2] For discussion of debt, see Note 11 - Debt of Notes to Consolidated Financial Statements.

[3] For discussion of income taxes, see Note 12 - Income Taxes of Notes to the Consolidated Financial Statements.

Net Income (Loss)

Three and nine months endedSeptember 30, 2018 compared to the three and nine months endedSeptember 30, 2017

Net lossfor the three months ended September 30, 2018 compared to net income in the prior year period due to a decrease in income from discontinued operations as a result of the sale of the Talcott Resolution run-off life and annuity business which closed on May 31, 2018. The loss from continuing operations, net of tax, decreased for the three months ended September 30, 2018 compared to the prior year period, primarily due to higher net investment income as a result of an increase in short-term interest rates and reinvesting the proceeds from the sale of Talcott as well as lower interest expense, partially offset by a lower tax benefit that was principally due to the reduction in the corporate Federal income tax rate.

Net income for the nine months ended September 30, 2018 compared to a net loss for the comparable period in 2017, primarily due to a pension settlement charge of $488, after tax in 2017. The settlement charge related to the purchase of a group annuity contract to transfer $1.6 billion of certain U.S. qualified pension plan liabilities to a third-party. Additionally, there was an increase in income from discontinued operations for the 2018 nine month period, partially offset by a lower tax benefit that was principally due to the reduction in the corporate Federal income

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tax rate and the effect of non-deductible executive compensation. The increase in income from discontinued operations was primarily due to a reduction in loss on sale in 2018, partially offset by lower operating earnings from Talcott Resolution in 2018 since the business was sold on May 31, 2018. The reduction in loss on sale for the nine month period was largely attributable to an increase in the estimated retained net operating loss carryover tax benefits from Talcott Resolution as well as the reclassification to retained earnings of $193 of tax effects stranded in AOCI due to the accounting for Tax Reform. For more information on the reclassification of stranded tax effects, see Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to the Condensed Consolidated Financial Statements.

Interest Expense

Three and nine months endedSeptember 30, 2018 compared to the three and nine months endedSeptember 30, 2017

Interest expense decreased for both the three and nine month periods, primarily due to the redemption of junior subordinated debentures. On June 15, 2018, The Hartford redeemed $500 aggregate principal amount of its 8.125% Fixed-to-Floating Rate Junior Subordinated Debentures due 2068 and recognized a $6 loss on extinguishment of debt for unamortized deferred debt issuance costs. On March 15, 2018, the Company issued $500 of 4.4% senior notes due March 15, 2048 for net proceeds of approximately $490. The Company used a portion of the net proceeds to repay the Company's $320 of 6.3% notes at maturity. See Note 11 -Debt of Notes to the Condensed Consolidated Financial Statements.

ENTERPRISE RISK MANAGEMENT

The Company’s Board of Directors has ultimate responsibility for risk oversight, as described more fully in our Proxy Statement, while management is tasked with the day-to-day management of the Company’s risks.

The Company manages and monitors risk through risk policies, controls and limits. At the senior management level, an Enterprise Risk and Capital Committee (“ERCC”) oversees the risk profile and risk management practices of the Company.

The Company's enterprise risk management ("ERM") function supports the ERCC and functional committees, and is tasked with, among other things:

• risk identification and assessment;

• the development of risk appetites, tolerances, and limits;

• risk monitoring; and

• internal and external risk reporting.

The Company categorizes its main risks as insurance risk, operational risk and financial risk. Insurance risk and financial risk are described in more detail below. Operational risk and specific risk tolerances for natural catastrophes, terrorism risk and pandemic risk are described in the ERM section of the MD&A in The Hartford’s 2017 Form 10-K Annual Report.

Insurance Risk

The Company categorizes its insurance risks across property-casualty and group benefits products. Non-catastrophe insurance risk arises from a number of exposures including property, liability, mortality, morbidity, disability and longevity. Catastrophe risk primarily arises in the property, automobile, group life, group disability, and workers' compensation product lines. The Company establishes risk limits to control potential loss and actively monitors the risk exposures as a percent of statutory surplus. The Company also uses reinsurance to transfer insurance risk to well-established and financially secure reinsurers.

Reinsurance as a Risk Management Strategy

The Company uses reinsurance to transfer certain risks to reinsurance companies based on specific geographic or risk concentrations. A variety of traditional reinsurance products are used as part of the Company's risk management strategy, including excess of loss occurrence-based products that reinsure property and workers' compensation exposures, and individual risk or quota share arrangements, that reinsure losses from specific classes or lines of business. The Company has no significant finite risk contracts in place and the statutory surplus benefit from all such prior year contracts is immaterial. The Hartford also participates in governmentally administered reinsurance facilities such as the Florida Hurricane Catastrophe Fund (“FHCF”), the Terrorism Risk Insurance Program (“TRIPRA”) and other reinsurance programs relating to particular risks or specific lines of business.

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Reinsurance for Catastrophes- The Company has catastrophe reinsurance programs, including reinsurance treaties that cover property and workers' compensation losses aggregating from single catastrophe events.

Primary Catastrophe Treaty Reinsurance Coverages as of September 30, 2018

Per Occurrence Property Catastrophe Treaty for 1/1/2018 to 12/31/2018 [1] [3]	Portion of losses reinsured	Portion of losses retained by The Hartford
Losses of $0 to $350 from one event	None	100% retained
Losses of $350 to $500 from one event	75% of $150 in excess of $350	25% co-participation
Losses of $500 to $1.1 billion from one event [2]	90% of $600 in excess of $500	10% co-participation
Aggregate Property Catastrophe Treaty for 1/1/2018 to 12/31/2018 [3]
$0 to $825 of aggregate losses	None	100% retained
$825 to $1.025 billion of aggregate losses	100%	None
Workers' Compensation Catastrophe Treaty for 1/1/2018 to 12/31/2018
Losses of $0 to $100 from one event	None	100% retained
Losses of $100 to $450 from one event [4]	80% of $350 in excess of $100	20% co-participation

[1] In addition to the Property Occurrence Treaty, for Florida events, The Hartford has purchased the mandatory FHCF reinsurance for the period from 6/1/2018 to 5/30/2019. While final calculations are not made available by the FHCF until later in 2018, the estimate is that FHCF would cover $96 of per event losses in excess of a $32 retention.

[2] Portions of this layer of coverage extend beyond the traditional one year term.

[3] $100 of the Aggregate Property Catastrophe Treaty can alternatively be used as per occurrence cover in excess of $1.1 billion. The aggregate treaty is not limited to a single event; rather, it is designed to provide reinsurance protection for the aggregate of all events designated as catastrophes by PCS (Property Claims Services/Verisk) with a $350 limit on any one event.

[4] In addition to the limits shown, the worker's compensation reinsurance includes a non-catastrophe, industrial accident layer, providing coverage for 80% of $30 in per event losses in excess of a $20 retention.

In addition to the property catastrophe reinsurance coverage described in the above table, the Company has other reinsurance agreements that cover property catastrophe losses. The Per Occurrence Property Catastrophe Treaty and Workers' Compensation Catastrophe Treaty include a provision to reinstate limits in the event that a catastrophe loss exhausts limits on one or more layers under the treaties.

Reinsurance for Terrorism- For the risk of terrorism, private sector catastrophe reinsurance capacity is generally limited and largely unavailable for terrorism losses caused by nuclear, biological, chemical or radiological attacks. As such, the Company's principal reinsurance protection against large-scale terrorist attacks is the coverage currently provided through TRIPRA to the end of 2020.

TRIPRA provides a backstop for insurance-related losses resulting from any “act of terrorism”, which is certified by the Secretary of the Treasury, in consultation with the Secretary of Homeland Security and the Attorney General, for losses that exceed a threshold of industry losses of $160 in 2018, with the threshold increasing to $200 by 2020. Under the program, in any one calendar year, the federal government would pay a percentage of losses incurred from a certified act of terrorism after an insurer's losses exceed 20% of the Company's eligible direct commercial earned premiums of the prior calendar year up to a combined annual aggregate limit for the federal government and all insurers of $100 billion. The percentage of losses paid by the federal government is 82% in 2018, decreasing by 1 point annually to 80% in the year 2020. The Company's estimated

deductible under the program is $1.3 billion for 2018. If an act of terrorism or acts of terrorism result in covered losses exceeding the $100 billion annual industry aggregate limit, Congress would be responsible for determining how additional losses in excess of $100 billion will be paid.

Reinsurance for A&E Reserve Development- Under an ADC reinsurance agreement, NICO assumes adverse net loss and allocated loss adjustment expense reserve development up to $1.5 billion above the Company’s net A&E reserves recorded as of December 31, 2016. Under retroactive reinsurance accounting, net adverse A&E reserve development after December 31, 2016 results in an offsetting reinsurance recoverable up to the $1.5 billion. Cumulative ceded losses up to the $650 reinsurance premium paid for the ADC are recognized as a dollar-for-dollar offset to direct losses incurred. As of September 30, 2018, $285 of cumulative incurred A&E losses had been ceded to NICO, leaving approximately $1.2 billion of coverage available for future adverse net reserve development, if any. Cumulative ceded losses exceeding the $650 reinsurance premium paid would result in a deferred gain. The deferred gain would be recognized over the claim settlement period in the proportion of the amount of cumulative ceded losses collected from the reinsurer to the estimated ultimate reinsurance recoveries. Consequently, until periods when the deferred gain is recognized as a benefit to earnings, cumulative adverse development of A&E claims after December 31, 2016 in excess of $650 may result in significant charges against earnings. Furthermore, there is a risk that cumulative adverse development of A&E claims could ultimately exceed the $1.5 billion treaty limit in which case all adverse

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development in excess of the treaty limit would be absorbed as a charge to earnings by the Company. In these scenarios, the effect of these changes could be material to the Company’s consolidated operating results and liquidity.

Reinsurance Recoverables

Property and casualty insurance product reinsurance recoverables represent loss and loss adjustment expense recoverables from a number of entities, including reinsurers and pools.

Property & Casualty Reinsurance Recoverables

	As of September 30, 2018			As of December 31, 2017
Paid loss and loss adjustment expenses	$	132		$	84
Unpaid loss and loss adjustment expenses	3,329			3,496
Gross reinsurance recoverables	3,461			3,580
Less: Allowance for uncollectible reinsurance	(126		)	(104		)
Net reinsurance recoverables	$	3,335		$	3,476

Group benefits reinsurance recoverables represent future policy benefits and unpaid loss and loss adjustment

expenses and other policyholder funds and benefits payable that are recoverable from a number of reinsurers.

Group Benefits Reinsurance Recoverables

	As of September 30, 2018		As of December 31, 2017
Future policy benefits and unpaid loss and loss adjustment expenses and other policyholder funds and benefits payable	$	256	$	236
Less: Allowance for uncollectible reinsurance [1]	—		—
Net reinsurance recoverables	$	256	$	236

[1]No allowance for uncollectible reinsurance is required as of September 30, 2018 and December 31, 2017.

For further explanation of the Company's insurance risk management strategy, see MD&A Enterprise Risk Management Insurance Risk in The Hartford's 2017 Form 10-K Annual Report.

Financial Risk

Financial risks include direct and indirect risks to the Company's financial objectives coming from events that impact market conditions or prices. Some events may cause correlated movement in multiple risk factors. The primary sources of financial risks are the Company's general account invested assets. Consistent with its risk appetite, the Company establishes financial risk limits to control potential loss on a U.S. GAAP, statutory, and economic basis. Exposures are actively monitored, and mitigated where appropriate. The Company uses various risk management strategies, including over-the-counter and exchange traded derivatives with counterparties meeting the appropriate regulatory and due diligence requirements. Derivatives are utilized to achieve one of four Company-approved objectives: hedging risk arising from interest rate, equity market, commodity market, credit spread and issuer default, price or currency exchange rate risk or volatility; managing liquidity; controlling transaction costs; or entering into synthetic replication transactions. Derivative activities are monitored and evaluated by the Company’s compliance and risk management teams and reviewed by senior management.

The Company identifies different categories of financial risk, including liquidity, credit, interest rate, equity and foreign currency exchange.

Liquidity Risk

Liquidity risk is the risk to current or prospective earnings or capital arising from the Company's inability or perceived inability to meet its contractual funding obligations as they come due. Stressed market conditions may impact the ability to sell assets or otherwise transact business and may result in a significant loss in value.

The Company measures and manages liquidity risk exposures and funding needs within prescribed limits across legal entities, taking into account legal, regulatory and operational limitations to the transferability of liquidity. The Company also monitors internal and external conditions, and identifies material risk changes and emerging risks that may impact liquidity.

For further discussion on liquidity see the section on Capital Resources and Liquidity.

Credit Risk

Credit risk is the risk to earnings or capital due to uncertainty of an obligor’s or counterparty’s ability or willingness to meet its obligations in accordance with contractually agreed upon terms. Credit risk is comprised of three major factors: the risk of change in credit quality, or credit migration risk; the risk of default; and the risk of a change in value due to changes in credit spreads.

Sources of Credit RiskThe majority of the Company’s credit risk is concentrated in its investment holdings, but it is also present in the Company’s reinsurance and insurance portfolios.

ImpactA decline in creditworthiness is typically associated with an increase in an investment’s credit spread, and potentially

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result in an increase in other-than-temporary impairments and an increased probability of a realized loss upon sale. Premiums receivable and reinsurance recoverables are also subject to credit risk based on the counterparty’s unwillingness or inability to pay.

ManagementThe objective of the Company’s enterprise credit risk management strategy is to identify, quantify, and manage credit risk on an aggregate portfolio basis and to limit potential losses in accordance with an established credit risk management policy. The Company primarily manages its credit risk by holding a diversified mix of investment grade issuers and counterparties across its investment, reinsurance, and insurance portfolios. Potential losses are also limited within portfolios by diversifying across geographic regions, asset types, and sectors.

The Company manages credit risk on an on-going basis through the use of various processes and analyses. Both the investment and reinsurance areas have formulated procedures for counterparty approvals and authorizations, which establish minimum levels of creditworthiness and financial stability. Credits considered for investment are subjected to underwriting reviews. Within the investment portfolio, private securities are subject to committee review for approval. Mitigation strategies vary across the three sources of credit risk, but may include:

• Investing in a portfolio of high-quality and diverse securities;

• Selling investments subject to credit risk;

• Hedging through use of credit default swaps;

• Clearing transactions through central clearing houses that require daily variation margin;

• Entering into contracts only with strong creditworthy institutions;

• Requiring collateral; and

• Non-renewing policies/contracts or reinsurance treaties.

The Company has developed credit exposure thresholds which are based upon counterparty ratings. Aggregate counterparty credit quality and exposure are monitored on a daily basis utilizing an enterprise-wide credit exposure information system that contains data on issuers, ratings, exposures, and credit limits. Exposures are tracked on a current and potential basis and aggregated by ultimate parent of the counterparty across investments, reinsurance receivables, insurance products with credit risk, and derivatives.

As of September 30, 2018, the Company had no investment exposure to any credit concentration risk of a single issuer or counterparty greater than 10% of the Company’s stockholders' equity, other than the U.S. government and certain U.S. government agencies. For further discussion of concentration of credit risk in the investment portfolio, see the Concentration of Credit Risk section in Note 6 - Investments of Notes to Condensed Consolidated Financial Statements.

Credit Risk of Derivatives

The Company uses various derivative counterparties in executing its derivative transactions. The use of counterparties creates credit risk that the counterparty may not perform in accordance with the terms of the derivative transaction.

Downgrades to the credit ratings of the Company’s insurance operating companies may have adverse implications for its use of

derivatives. In some cases, downgrades may give derivative counterparties for over-the-counter derivatives and clearing brokers for OTC-cleared derivatives the right to cancel and settle outstanding derivative trades or require additional collateral to be posted. In addition, downgrades may result in counterparties and clearing brokers becoming unwilling to engage in or clear additional derivatives or may require collateralization before entering into any new trades.

The Company also has derivative counterparty exposure policies which limit the Company’s exposure to credit risk. Credit exposures are generally quantified based on the prior business day’s net fair value, including income accruals, of all derivative positions transacted with a single counterparty for each separate legal entity.  The Company enters into collateral arrangements in connection with its derivatives positions and collateral is pledged to or held by, or on behalf of, the Company to the extent the exposure is greater than zero, subject to minimum transfer thresholds. For the nine months ended September 30,2018, the Company incurred no losses on derivative instruments due to counterparty default. For further discussion, see the Derivative Commitments section of Note 13Commitments and Contingencies of Notes to Condensed Consolidated Financial Statements.

Use of Credit Derivatives

The Company may also use credit default swaps to manage credit exposure or to assume credit risk to enhance yield.

Credit Risk Reduced Through Credit Derivatives

The Company uses credit derivatives to purchase credit protection with respect to a single entity or referenced index. The Company purchases credit protection through credit default swaps to economically hedge and manage credit risk of certain fixed maturity investments across multiple sectors of the investment portfolio.

Credit Risk Assumed Through Credit Derivatives

The Company also enters into credit default swaps that assume credit risk as part of replication transactions. Replication transactions are used as an economical means to synthetically replicate the characteristics and performance of assets that are permissible investments under the Company’s investment policies. These swaps reference investment grade single corporate issuers and indexes.

For further information on credit derivatives, see Note 7 - Derivative Instruments of Notes to Condensed Consolidated Financial Statements.

Interest Rate Risk

Interest rate risk is the risk of financial loss due to adverse changes in the value of assets and liabilities arising from movements in interest rates. Interest rate risk encompasses exposures with respect to changes in the level of interest rates, the shape of the term structure of rates and the volatility of interest rates. Interest rate risk does not include exposure to changes in credit spreads.

The Company has exposure to interest rates arising from its fixed maturity securities, liabilities such as structured settlements and terminal funding agreement liabilities and discount rate assumptions associated with the Company’s pension and other post retirement benefit obligations. In addition, certain product

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liabilities expose the Company to interest rate risk, in particular short and long-term disability claim reserves.

Changes in interest rates from current levels can have both favorable and unfavorable effects for the Company.

The Company primarily manages its exposure to interest rate risk by constructing investment portfolios that seek to protect the firm from the economic impact associated with changes in interest rates by setting portfolio duration targets that are aligned with the duration of the liabilities that they support.

The Company may also utilizes a variety of derivative instruments to mitigate interest rate risk associated with its investment portfolio or to hedge liabilities. Interest rate caps, floors, swaps, swaptions, and futures may be used to manage portfolio duration.

Equity Risk

Equity risk is defined as the risk of financial loss due to changes in the value of global equities or equity indices. The Company has exposure to equity risk from invested assets, mutual fund assets under management, and assets that support the Company’s pension and other post-retirement benefit plans. The Company uses various approaches in managing its equity exposure, including limits on the proportion of assets invested in equities, diversification of the equity portfolio, and hedging of changes in equity indices.

Declines in equity markets may result in losses due to sales or reductions in market value that are recorded within our reported earnings. Declines in equity markets may also decrease the value of limited partnerships and other alternative investments or result in losses on derivatives, thereby negatively impacting our reported earnings.

The Company’s mutual funds are significantly influenced by the U.S. and other equity markets. Generally, declines in equity markets will reduce the value of assets under management and

the amount of fee income generated from those assets. Increases in equity markets will generally have the inverse impact.

For the assets that support its pension plans and other post-retirement benefit plans, the Company may be required to make additional plan contributions if equity investments in the plan portfolio decline in value. The asset allocation mix is reviewed on a periodic basis. In order to minimize the risk, the pension plans maintain a listing of permissible and prohibited investments and impose concentration limits and investment quality requirements on permissible investment options.

Foreign Currency Exchange Risk

Foreign currency exchange risk is the risk of financial loss due to changes in the relative value between currencies.

The Company has foreign currency exchange risk in non-U.S. dollar denominated investments, which primarily consist of fixed maturity and equity investments and foreign denominated cash.

The open foreign currency exposure of non-U.S. dollar denominated investments will most commonly be reduced through the sale of the assets or through hedges using currency futures/forwards/swaps. In order to manage the currency risk related to any non-U.S. dollar denominated liability contracts, the Company holds non-U.S. dollar denominated investments which match the underlying currency exposure of the liabilities.

Investment Portfolio Risk

The following table presents the Company’s fixed maturities, AFS, by credit quality. The credit ratings referenced throughout this section are based on availability and are generally the midpoint of the available ratings among Moody’s, S&P, Fitch and Morningstar. If no rating is available from a rating agency, then an internally developed rating is used.

Fixed Maturities by Credit Quality
	September 30, 2018						December 31, 2017
	Amortized Cost		Fair Value		Percent of Total Fair Value		Amortized Cost		Fair Value		Percent of Total Fair Value
United States Government/Government agencies	$	4,839	$	4,735	13.1	%	$	4,492	$	4,536	12.3	%
AAA	6,312		6,379		17.6	%	5,864		6,072		16.4	%
AA	6,984		7,085		19.6	%	7,467		7,810		21.1	%
A	8,508		8,543		23.6	%	8,510		8,919		24.1	%
BBB	8,274		8,232		22.8	%	7,632		7,931		21.5	%
BB & below	1,177		1,192		3.3	%	1,647		1,696		4.6	%
Total fixed maturities, AFS	$	36,094	$	36,166	100.0	%	$	35,612	$	36,964	100.0	%

The fair value of fixed maturities, AFS decreased as compared to December 31, 2017, primarily due a decrease in valuations due to higher interest rates. United States government/government agencies and AAA-rated bonds increased as compared to December 31, 2017, primarily due to the reallocation of tax-

exempt municipal bonds into structured and U.S. government agency securities. Fixed maturities, FVO, are not included in the preceding table. For further discussion on FVO securities, see Note 5 - Fair Value Measurements of Notes to Condensed Consolidated Financial Statements.

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Securities by Type
	September 30, 2018											December 31, 2017
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Percent of Total Fair Value		Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Percent of Total Fair Value
Asset-backed securities ("ABS")
Consumer loans	$	1,025	$	2	$	(2	)	$	1,025	2.8	%	$	925	$	7	$	(2	)	$	930	2.5	%
Other	166		1		(1		)	166		0.5	%	194		2		—			196		0.5	%
Collateralized loan obligations ("CLOs")	1,328		1		(3		)	1,326		3.7	%	1,257		3		—			1,260		3.4	%
CMBS
Agency [1]	1,521		5		(43		)	1,483		4.1	%	1,199		16		(14		)	1,201		3.2	%
Bonds	1,892		11		(41		)	1,862		5.2	%	1,726		32		(9		)	1,749		4.7	%
Interest only (“IOs”)	305		9		(2		)	312		0.9	%	379		10		(3		)	386		1.0	%
Corporate
Basic industry	573		11		(11		)	573		1.6	%	523		28		(1		)	550		1.5	%
Capital goods	1,115		12		(24		)	1,103		3.0	%	1,050		44		(4		)	1,090		2.9	%
Consumer cyclical	915		9		(18		)	906		2.5	%	857		33		(2		)	888		2.4	%
Consumer non-cyclical	1,917		14		(50		)	1,881		5.2	%	1,643		46		(7		)	1,682		4.6	%
Energy	1,129		21		(22		)	1,128		3.1	%	1,056		43		(3		)	1,096		3.0	%
Financial services	3,450		16		(71		)	3,395		9.4	%	2,722		77		(10		)	2,789		7.5	%
Tech./comm.	1,582		41		(37		)	1,586		4.4	%	1,618		87		(9		)	1,696		4.6	%
Transportation	557		6		(12		)	551		1.5	%	555		18		—			573		1.6	%
Utilities	2,153		46		(71		)	2,128		5.9	%	2,097		110		(19		)	2,188		5.9	%
Other	249		—		(8		)	241		0.7	%	249		4		(1		)	252		0.7	%
Foreign govt./govt. agencies	961		11		(20		)	952		2.6	%	1,071		43		(4		)	1,110		3.0	%
Municipal bonds
Taxable	614		12		(21		)	605		1.7	%	537		30		(5		)	562		1.5	%
Tax-exempt	9,662		390		(55		)	9,997		27.6	%	11,206		724		(7		)	11,923		32.3	%
RMBS
Agency	1,464		5		(45		)	1,424		3.9	%	1,530		10		(4		)	1,536		4.2	%
Non-agency	737		2		(6		)	733		2.0	%	227		3		—			230		0.6	%
Alt-A	46		2		—			48		0.1	%	58		4		—			62		0.2	%
Sub-prime	879		35		(1		)	913		2.5	%	1,170		46		—			1,216		3.3	%
U.S. Treasuries	1,854		17		(43		)	1,828		5.1	%	1,763		46		(10		)	1,799		4.9	%
Fixed maturities, AFS	36,094		679		(607		)	36,166		100.0	%	35,612		1,466		(114		)	36,964		100	%
Equity securities
Financial services												115		19		—			134		13.3	%
Other												792		102		(16		)	878		86.7	%
Equity securities, AFS [2]												907		121		(16		)	1,012		100	%
Total AFS securities	$	36,094	$	679	$	(607	)	$	36,166			$	36,519	$	1,587	$	(130	)	$	37,976
Fixed maturities, FVO								$	24										$	41
Equity securities, at fair value [2]								$	1,035

[1] Includes securities with pools of loans issued by the Small Business Administration which are backed by the full faith and credit of the U.S. government.

[2] Effective January 1, 2018, with the adoption of new accounting standards for financial instruments, equity securities, AFS were reclassified to equity securities, at fair value.

The fair value of AFS securities decreased as compared to December 31, 2017, primarily due to a decrease in valuations due to higher interest rates. Also, tax-exempt municipal bonds were reallocated into corporate bonds, structured and U.S. government agency securities during the period.

Financial Services

The Company’s investment in the financial services sector is predominantly through investment grade banking and insurance institutions. The following table presents the Company’s fixed maturities and equity, AFS securities in the financial services sector that are included in the preceding Securities by Type table.

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Financial Services by Credit Quality
	September 30, 2018							December 31, 2017
	Amortized Cost		Fair Value		Net Unrealized Gain/(Loss)			Amortized Cost		Fair Value		Net Unrealized Gain/(Loss)
AAA	$	28	$	29	$	1		$	25	$	26	$	1
AA	515		514		(1		)	147		150		3
A	1,616		1,582		(34		)	1,525		1,575		50
BBB	1,236		1,214		(22		)	1,061		1,089		28
BB & below	55		56		1			79		83		4
Total [1]	$	3,450	$	3,395	$	(55	)	$	2,837	$	2,923	$	86

[1] Includes equity, AFS securities with an amortized cost and fair value of $115 and $134 as of December 31, 2017. Effective January 1, 2018, with the adoption of new accounting guidance for financial instruments, equity securities, AFS were reclassified to equity securities, at fair value and are excluded from the table above as of September 30, 2018.

The Company's fair value of investments in the financial services sector increased as compared to December 31, 2017 due to purchases of investment grade corporate securities, slightly offset by a decline in valuations due to higher interest rates and wider credit spreads.

Commercial Real Estate

The following table presents the Company’s exposure to CMBS bonds by current credit quality and vintage year included in the

preceding Securities by Type table. Credit protection represents the current weighted average percentage of the outstanding capital structure subordinated to the Company’s investment holding that is available to absorb losses before the security incurs the first dollar loss of principal and excludes any equity interest or property value in excess of outstanding debt.

Exposure to CMBS Bonds as of September 30, 2018
	AAA				AA				A				BBB				BB and Below				Total
Vintage Year [1]	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
2008 & Prior	$	20	$	21	$	5	$	5	$	—	$	—	$	—	$	—	$	9	$	9	$	34	$	35
2009	—		—		2		2		—		—		—		—		—		—		2		2
2010	18		18		—		—		—		—		—		—		—		—		18		18
2011	38		39		—		—		2		2		—		—		—		—		40		41
2012	17		17		9		8		—		—		5		5		—		—		31		30
2013	—		—		11		11		36		37		—		—		—		—		47		48
2014	284		283		36		36		43		42		—		—		—		—		363		361
2015	136		132		111		110		156		157		8		9		—		—		411		408
2016	167		159		106		102		78		79		9		9		—		—		360		349
2017	202		194		142		135		—		—		—		—		—		—		344		329
2018	150		149		23		23		46		46		23		23		—		—		242		241
Total	$	1,032	$	1,012	$	445	$	432	$	361	$	363	$	45	$	46	$	9	$	9	$	1,892	$	1,862
Credit  protection	30.7%				21.6%				14.3%				12.1%				69.7%				25.1%

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Exposure to CMBS Bonds as of December 31, 2017
	AAA				AA				A				BBB				BB and Below				Total
Vintage Year [1]	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
2008 & Prior	$	32	$	32	$	5	$	6	$	—	$	—	$	—	$	—	$	9	$	9	$	46	$	47
2009	—		—		2		2		—		—		—		—		—		—		2		2
2010	18		19		—		—		—		—		—		—		—		—		18		19
2011	40		42		—		—		2		2		—		—		—		—		42		44
2012	17		18		9		9		—		—		5		5		—		—		31		32
2013	—		—		11		11		36		38		—		—		—		—		47		49
2014	284		292		36		37		43		43		4		4		5		5		372		381
2015	206		207		111		112		155		159		25		25		3		3		500		506
2016	201		200		107		107		78		81		9		9		—		—		395		397
2017	131		131		142		141		—		—		—		—		—		—		273		272
Total	$	929	$	941	$	423	$	425	$	314	$	323	$	43	$	43	$	17	$	17	$	1,726	$	1,749
Credit  protection	30.8%				21.4%				14.1%				11.3%				41.0%				25.1%

[1] The vintage year represents the year the pool of loans was originated.

The Company also has exposure to commercial mortgage loans. These loans are collateralized by real estate properties that are diversified both geographically throughout the United States and by property type. These loans are primarily originated by the Company as high quality whole loans, most of which portions are participated out to institutional clients. Loan participations are loans where the Company has purchased or retained a portion of an outstanding loan or package of loans and participates on a pro-rata basis in collecting interest and principal pursuant to the terms of the participation agreement. 

As of September 30, 2018 and December 31, 2017, commercial mortgage loans had an amortized cost and carrying value of $3.6 billion and $3.2 billion, respectively, with a valuation allowance of $1 for both periods.

The Company funded $450 of commercial loans with a weighted average loan-to-value (“LTV”) ratio of 61% and a weighted average yield of 4.4% during the nine months endedSeptember 30, 2018. The Company continues to originate commercial loans within primary markets, such as office, industrial and multi-family, focusing on loans with strong LTV ratios and high quality property collateral. There were no mortgage loans held for sale as of September 30, 2018 or December 31, 2017.

Municipal Bonds

The following table presents the Company's exposure to municipal bonds by type and weighted average credit quality included in the preceding Securities by Type table.

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Available For Sale Investments in Municipal Bonds
	September 30, 2018					December 31, 2017
	Amortized Cost		Fair Value		Weighted Average Credit Quality	Amortized Cost		Fair Value		Weighted Average Credit Quality
General Obligation	$	1,379	$	1,424	AA-	$	1,976	$	2,087	AA
Pre-Refunded [1]	1,963		2,030		AAA	1,960		2,067		AAA
Revenue
Transportation	1,452		1,530		A+	1,638		1,790		A+
Health Care	1,109		1,135		AA-	1,278		1,359		AA-
Education	947		948		AA	1,079		1,130		AA
Water & Sewer	910		938		AA	1,069		1,131		AA
Leasing [2]	754		775		AA-	809		858		AA-
Sales Tax	548		578		AA	537		590		AA
Power	373		390		AA-	442		478		AA-
Housing	33		34		A+	79		82		AA-
Other	808		820		AA-	876		913		AA-
Total Revenue	6,934		7,148		AA-	7,807		8,331		AA-
Total Municipal	$	10,276	$	10,602	AA	$	11,743	$	12,485	AA

[1] Pre-Refunded bonds are bonds for which an irrevocable trust containing sufficient U.S. treasury, agency, or other securities has been established to fund the remaining payments of principal and interest.

[2] Leasing revenue bonds are generally the obligations of a financing authority established by the municipality that leases facilities back to a municipality. The notes are typically secured by lease payments made by the municipality that is leasing the facilities financed by the issue. Lease payments may be subject to annual appropriation by the municipality or the municipality may be obligated to appropriate general tax revenues to make lease payments.

As of both September 30, 2018 and December 31, 2017, the largest issuer concentrations were the New York City Transitional Finance Authority, the New York Dormitory Authority, and the Commonwealth of Massachusetts, which each comprised less than 3% of the municipal bond portfolio and were primarily comprised of general obligation and revenue bonds. In total, municipal bonds make up 23% of the fair value of the Company's investment portfolio. The Company has evaluated its portfolio allocation to municipal bonds with respect to the changes in corporate income tax rates that began in 2018 and has reduced exposure through both asset sales and principal repayments. The Company will continue to actively assess the  sector’s relative value over time.

Limited Partnerships and Other Alternative Investments

The following tables present the Company’s investments in limited partnerships and other alternative investments which include hedge funds, real estate funds, and private equity funds. Real estate funds consist of investments primarily in real estate joint venture and equity funds. Private equity funds primarily consist of investments in funds whose assets typically consist of a diversified pool of investments in small to mid-sized non-public businesses with high growth potential as well as limited exposure to public markets.

Limited Partnerships and Other Alternative Investments - Net Investment Income
	Three Months Ended September 30,										Nine Months Ended September 30,
	2018					2017					2018					2017
	Amount			Yield		Amount			Yield		Amount			Yield		Amount		Yield
Hedge funds	$	3		20.0	%	$	—		—	%	$	3		9.3	%	$	2	28.6	%
Real estate funds	26			20.0	%	24			20.0	%	36			9.6	%	29		8.2	%
Private equity funds	18			9.7	%	25			15.6	%	119			24.5	%	106		23.7	%
Other alternative investments	(2		)	(1.1	%)	(1		)	(0.7	%)	(1		)	(0.2	%)	8		2.7	%
Total	$	45		10.6	%	$	48		12.8	%	$	157		13.3	%	$	145	13.2	%

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Investments in Limited Partnerships and Other Alternative Investments
	September 30, 2018				December 31, 2017
	Amount		Percent		Amount		Percent
Hedge funds	$	47	2.7	%	$	22	1.4	%
Real estate funds	533		31.1	%	486		30.6	%
Private equity and other funds	746		43.6	%	693		43.6	%
Other alternative investments [1]	386		22.6	%	387		24.4	%
Total	$	1,712	100	%	$	1,588	100	%

[1]Consists of an insurer-owned life insurance policy which is invested in hedge funds and other investments.

Available-for-sale Securities — Unrealized Loss Aging

The total gross unrealized losses were $607 as of September 30, 2018 and have increased $477, or 367%, from December 31, 2017, primarily due to higher interest rates. As of September 30, 2018, $600 of the gross unrealized losses were associated with securities depressed less than 20% of cost or amortized cost. The remaining $7 of gross unrealized losses were associated with securities depressed greater than 20%. The securities depressed more than 20% are primarily securities with exposure to commercial real estate which are depressed primarily due to higher interest rates since the securities were purchased.

As part of the Company’s ongoing security monitoring process,

the Company has reviewed its AFS securities in an unrealized loss position and concluded that these securities are temporarily depressed and are expected to recover in value as the securities approach maturity or as market spreads tighten. For these securities in an unrealized loss position where a credit impairment has not been recorded, the Company’s best estimate of expected future cash flows are sufficient to recover the amortized cost basis of the security. Furthermore, the Company neither has an intention to sell nor does it expect to be required to sell these securities. For further information regarding the Company’s impairment analysis, see Other-Than-Temporary Impairments in the Investment Portfolio Risks and Risk Management section of this MD&A.

Unrealized Loss Aging for AFS Securities
	September 30, 2018								December 31, 2017
Consecutive Months	Items	Cost or Amortized Cost		Fair Value		Unrealized Loss			Items	Cost or Amortized Cost		Fair Value		Unrealized Loss
Three months or less	602	$	5,147	$	5,109	$	(38	)	1,286	$	4,315	$	4,289	$	(26	)
Greater than three to six months	352	2,673		2,630		(43		)	342	1,694		1,673		(21		)
Greater than six to nine months	898	6,380		6,156		(224		)	157	601		594		(7		)
Greater than nine to eleven months	472	2,555		2,453		(102		)	89	188		183		(5		)
Twelve months or more	602	3,183		2,983		(200		)	652	2,040		1,969		(71		)
Total	2,926	$	19,938	$	19,331	$	(607	)	2,526	$	8,838	$	8,708	$	(130	)

Unrealized Loss Aging for AFS Securities Continuously Depressed Over 20%
	September 30, 2018								December 31, 2017
Consecutive Months	Items	Cost or Amortized Cost		Fair Value		Unrealized Loss			Items	Cost or Amortized Cost		Fair Value		Unrealized Loss
Three months or less	—	$	—	$	—	$	—		30	$	14	$	10	$	(4	)
Greater than three to six months	3	2		2		—			12	10		7		(3		)
Greater than six to nine months	2	2		1		(1		)	—	—		—		—
Twelve months or more	38	14		8		(6		)	47	13		7		(6		)
Total	43	$	18	$	11	$	(7	)	89	$	37	$	24	$	(13	)

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Other-than-temporary Impairments Recognized in Earnings by Security Type
	Three Months Ended September 30,				Nine months ended September 30,
	2018		2017		2018		2017
Credit Impairments
CMBS	$	1	$	—	$	1	$	2
Equity Impairments	—		1		—		2
Intent-to-Sell Impairments	—		—		—		—
Total	$	1	$	1	$	1	$	4

Three and nine months endedSeptember 30, 2018

For the three and nine months endedSeptember 30, 2018, impairments recognized in earnings were comprised of credit impairments of $1 and $1, respectively. The credit impairments were primarily related to interest-only CMBS and were identified through security specific review of the expected future cash flows.

The Company incorporates its best estimate of future performance using internal assumptions and judgments that are informed by economic and industry specific trends, as well as our expectations with respect to security specific developments.

Non-credit impairments recognized in other comprehensive income were $3 and$5 for the three and nine months endedSeptember 30, 2018, respectively.

Future impairments may develop as the result of changes in intent-to-sell specific securities or if actual results underperform current modeling assumptions, which may be the result of, but are not limited to, macroeconomic factors and security-specific performance below current expectations.

Three and nine months endedSeptember 30, 2017

For the three and nine months endedSeptember 30, 2017, impairments recognized in earnings were comprised of credit impairments of $0 and $2, respectively and impairments on equity of $1 and $2, respectively. The credit impairments were primarily related to interest-only CMBS and were identified through security specific review of the expected future cash flows. The impairments on equity securities were in an unrealized loss position and the Company no longer believed the securities would recover in the foreseeable future.

CAPITAL RESOURCES AND LIQUIDITY

The following section discusses the overall financial strength of The Hartford and its insurance operations including their ability to generate cash flows from each of their business segments, borrow funds at competitive rates and raise new capital to meet operating and growth needs over the next twelve months.

SUMMARY OF CAPITAL RESOURCES AND LIQUIDITY

Capital available to the holding company as of September 30, 2018:

• $2.3 billion in fixed maturities, short-term investments, investment sales receivable and cash at HFSG Holding Company.

• A senior unsecured five-year revolving credit facility that provides for borrowing capacity up to $750 of unsecured credit through March 29, 2023. No borrowings were outstanding as of September 30, 2018.

• Borrowings available under a commercial paper program to a maximum of $750. As of September 30, 2018 there was no commercial paper outstanding.

• The Hartford has an intercompany liquidity agreement that allows for short-term advances of funds among the HFSG Holding Company and certain affiliates of up to $2 billion for liquidity and other general corporate purposes.

• The Company’s subsidiaries, Hartford Fire Insurance Company (“Hartford Fire”) and Hartford Life and Accident Insurance Company (“HLA”), are members of the Federal Home Loan Bank of Boston (“FHLBB”) and have access to collateralized advances of up to $1.3 billion and $0.5 billion, respectively, without prior approval of the Connecticut Department of Insurance (“CTDOI”).  As of September 30, 2018, there were no advances outstanding under either FHLBB facility.

2018 dividend capacity:

• For the remainder of 2018, the Company has $125 remaining dividend capacity for property and casualty (P&C) insurance subsidiaries. Hartford Fire Insurance Company has sought approval from the Connecticut Department of Insurance to pay an extraordinary dividend of approximately $1.0 billion to the HFSG Holding Company during the fourth quarter of 2018. The dividends may be used to fund obligations of the HFSG Holding Company.

• Hartford Life and Accident Insurance Company ("HLA") has no dividend capacity for 2018 and does not anticipate paying dividends in 2018.

Expected liquidity requirements for the next twelve months as of September 30, 2018:

• $413 maturing debt payment due in January of 2019.

• $285 of interest on debt.

• $435 of common stockholders dividends, subject to the discretion of the Board of Directors.

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• $2.2 billion of cash consideration including transaction expenses to acquire all outstanding common shares of Navigators Group, a global specialty underwriter.

Liquidity Requirements and Sources of Capital

The Hartford Financial Services Group, Inc. (Holding Company)

The liquidity requirements of the holding company of The Hartford Financial Services Group, Inc. (“HFSG Holding Company”) have been and will continue to be met by HFSG Holding Company’s fixed maturities, short-term investments and cash, and dividends from its subsidiaries, principally from its insurance operations, as well as the issuance of common stock, debt or other capital securities and borrowings from its credit facilities, as needed.

As of September 30, 2018, HFSG Holding Company held fixed maturities, short-term investments, investment sales receivable and cash of $2.3 billion. Expected liquidity requirements of the HFSG Holding Company for the next twelve months include payment of the 6.0% senior note of $413 at maturity in January 2019, interest payments on debt of approximately $285, and common stockholder dividends, subject to the discretion of the Board of Directors, of approximately $435.

Debt

On March 15, 2018, The Hartford issued $500 of 4.4% senior notes ("4.4% Notes") due March 15, 2048 for net proceeds of approximately $490, after deducting underwriting discounts and expenses from the offering. Interest is payable semi-annually in arrears on March 15 and September 15, commencing September 15, 2018. The Hartford, at its option, can redeem the 4.4% Notes at any time, in whole or in part, at a redemption price equal to the greater of 100% of the principal amount being redeemed or a make-whole amount based on a comparable maturity US Treasury plus 25 basis points, plus any accrued and unpaid interest, except the option of a make-whole payment is not applicable within the final six months of maturity. The Hartford used a portion of the net proceeds from this issuance to repay $320 at maturity of the Company’s 6.3% notes due March 15, 2018, and the balance of the proceeds will be used for general corporate purposes.

On June 15, 2018 The Hartford redeemed $500 aggregate principal amount of its 8.125% Fixed-to-Floating Rate Junior Subordinated Debentures due 2068. In connection with the initial offering of the 8.125% debentures, the Company entered into a replacement capital covenant ("RCC"), and under the terms of the RCC, if the Company redeemed the 8.125% debentures at any time prior to June 15, 2048 it could only do so with the proceeds from the sale of certain qualifying replacement securities. The 3 month Libor plus 2.125% debentures issued February 15, 2017 are qualifying replacement securities within the definition of the RCC. In connection with this redemption, the Company recognized a $6 loss on extinguishment of debt for unamortized deferred debt issuance costs.

Equity

The Company does not currently have an equity repurchase authorization in 2018.

Dividends

The Hartford's Board of Directors declared the following quarterly dividends:

Declared	Record	Payable	Amount
October 18, 2018	December 3, 2018	January 2, 2019	$	0.30
July 19, 2018	September 4, 2018	October 1, 2018	$	0.30
May 17, 2018	June 1, 2018	July 2, 2018	$	0.25
February 22, 2018	March 5, 2018	April 2, 2018	$	0.25

There are no current restrictions on the HFSG Holding Company's ability to pay dividends to its shareholders.

For a discussion of restrictions on dividends to the HFSG Holding Company from its insurance subsidiaries, see the following "Dividends from Insurance Subsidiaries" discussion. For a discussion of potential restrictions on the HFSG Holding Company's ability to pay dividends, see the risk factor "Our ability to declare and pay dividends is subject to limitations" in Item 1A of Part I of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

Pension Plans and Other Postretirement Benefits

The Company does not have a 2018 required minimum funding contribution for the U.S. qualified defined benefit pension plan and the funding requirements for all pension plans are expected to be immaterial. The Company contributed $101 in September 2018 to its U.S. qualified defined benefit pension plan.

Dividends from Insurance Subsidiaries

Dividends to the HFSG Holding Company from its insurance subsidiaries are restricted by insurance regulation. The payment of dividends by Connecticut-domiciled insurers is limited under the insurance holding company laws of Connecticut. These laws require notice to and approval by the state insurance commissioner for the declaration or payment of any dividend, which, together with other dividends or distributions made within the preceding twelve months, exceeds the greater of (i) 10% of the insurer’s policyholder surplus as of December 31 of the preceding year or (ii) net income (or net gain from operations, if such company is a life insurance company) for the twelve-month period ending on the thirty-first day of December last preceding, in each case determined under statutory insurance accounting principles. In addition, if any dividend of a Connecticut-domiciled insurer exceeds the insurer’s earned surplus, it requires the prior approval of the Connecticut Insurance Commissioner. The insurance holding company laws of the other jurisdictions in which The Hartford’s insurance subsidiaries are incorporated (or deemed commercially domiciled) generally contain similar (although in certain instances more restrictive) limitations on the payment of dividends. In addition to statutory limitations on paying dividends, the Company also takes other items into consideration when determining dividends from subsidiaries. These considerations include, but are not limited to, expected

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earnings and capitalization of the subsidiaries, regulatory capital requirements and liquidity requirements of the individual operating company.

For 2018, the Company has $125 remaining dividend capacity for property and casualty ("P&C") insurance subsidiaries and no dividend capacity for HLA.

During the first nine months of 2018, total dividends paid by P&C subsidiaries to HFSG holding company were $2.1 billion. This includes an extraordinary dividend of $2.0 billion, which was comprised of a $1.9 billion principal paydown on the intercompany note owed by Hartford Holdings, Inc. ("HHI") to Hartford Fire Insurance Company related to the sale of Talcott Resolution and $92 related to interest payments on the note. In addition, there was $50 of ordinary P&C dividends that were paid to HFSG holding company, though these were subsequently contributed to a run-off P&C subsidiary. Excluding the interest payments on the intercompany note and dividends that were subsequently contributed to a P&C subsidiary, net dividends paid by P&C subsidiaries to HFSG holding company were $1.9 billion during the first nine months of 2018.

Total net dividends received by HFSG holding company were $2.0 billion, including $1.9 billion from P&C subsidiaries and $85 from Mutual Funds during the first nine months of 2018.

Over the remainder of 2018, the Company anticipates receiving approximately $30 of dividends from Mutual Funds and does not anticipate receiving any additional dividends from HLA. Hartford Fire Insurance Company has sought approval from the Connecticut Department of Insurance to pay an extraordinary dividend of approximately $1.0 billion to the HFSG Holding Company during the fourth quarter of 2018. The dividends may be used to fund obligations of the HFSG Holding Company.

Other Sources of Capital for the HFSG Holding Company

The Hartford endeavors to maintain a capital structure that provides financial and operational flexibility to its insurance subsidiaries, ratings that support its competitive position in the financial services marketplace (see the "Ratings" section below for further discussion), and shareholder returns. As a result, the Company may from time to time raise capital from the issuance of debt, common equity, equity-related debt or other capital securities and is continuously evaluating strategic opportunities. The issuance of debt, common equity, equity-related debt or other capital securities could result in the dilution of shareholder interests or reduced net income due to additional interest expense.

Shelf Registrations

The Hartford filed an automatic shelf registration statement with the Securities and Exchange Commission ("the SEC") on July 29, 2016 that permits it to offer and sell debt and equity securities during the three-year life of the registration statement.

Revolving Credit Facilities and Commercial Paper

Revolving Credit Facilities

As previously reported, on March 29, 2018, the Company entered into an amendment to its Five-Year Credit Agreement dated October 31, 2014. The Amendment reset the level of the Company's minimum consolidated net worth financial covenant

to $9 billion excluding AOCI from its former $13.5 billion (where net worth was defined as stockholders' equity excluding AOCI and including junior subordinated debt), among other updates. Among other changes, under an amended and restated credit agreement that became effective in June 2018, after the closing of the sale of the Company's life and annuity run-off business, the aggregate amount of principal of the credit facility decreased from $1 billion to $750, including a reduction to the amount available for letters of credit from $250 to $100, the maturity date was extended to March 29, 2023, and the liens covenant and certain other covenants were modified.

Revolving loans from the Credit Facility may be in multiple currencies. U.S. dollar loans will bear interest at a floating rate equivalent to an indexed rate depending on the type of borrowing and a basis point spread based on The Hartford's credit rating and will mature no later than March 29, 2023. Letters of credit issued from the Credit Facility bear a fee based on The Hartford's credit rating and expire no later than March 29, 2024. The Credit Facility requires the Company to maintain a minimum consolidated net worth excluding AOCI of $9 billion, limit the ratio of senior debt to capitalization excluding AOCI to no more than 35% and meet other customary covenants. The Credit Facility is for general corporate purposes.

As of September 30, 2018, no borrowings were outstanding and $3 in letters of credit were issued under the Credit Facility and the Company was in compliance with all financial covenants.

Commercial Paper

As of September 30, 2018, The Hartford's maximum borrowings available under its commercial paper program is $750 and there was no commercial paper outstanding. The Company is dependent upon market conditions to access short-term financing through the issuance of commercial paper to investors. On July 19, 2018, the Board of Directors revised the Company's commercial paper issuance authorization from $1 billion to $750 to align the program with the Company's $750 five year revolving credit facility which became effective on June 11, 2018.

Intercompany Liquidity Agreements

The Hartford has an intercompany liquidity agreement that allows for short-term advances of funds among the HFSG Holding Company and certain affiliates of up to $2 billion for liquidity and other general corporate purposes. The Connecticut Department of Insurance ("CTDOI") granted approval for certain affiliated insurance companies that are parties to the agreement to treat receivables from a parent, including the HFSG Holding Company, as admitted assets for statutory accounting purposes.

On May 25, 2018 Hartford Financial Services Group issued a Revolving Note (the "Note") in the principal amount of $165 to Hartford Fire Insurance Company. The note was repaid on June 1, 2018. 

As of September 30, 2018, there were no amounts outstanding at the HFSG Holding Company.

Collateralized Advances with Federal Home Loan Bank of Boston

In August 2018, the Company’s subsidiaries, Hartford Fire Insurance Company (“Hartford Fire”) and Hartford Life and Accident Insurance Company (“HLA”), became members of the Federal Home Loan Bank of Boston (“FHLBB”). Membership allows these subsidiaries access to collateralized advances, which

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Part I - Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

may be short- or long-term with fixed or variable rates. FHLBB membership required the purchase of member stock and requires additional member stock ownership of 3% or 4% of any amount borrowed. Acceptable forms of collateral include real estate backed fixed maturities and mortgage loans and the amount of advances that can be taken is limited to a percentage of the fair value of the assets that ranges from a high of 97% for US government-backed fixed maturities maturing within 3 years to a low of 40% for A-rated commercial mortgage-backed fixed maturities maturing in 5 years or more. In its consolidated balance sheets, The Hartford would present the liability for advances taken based on use of the funds with advances for general corporate purposes presented in short- or long-term debt and advances to earn incremental investment income presented in other liabilities, consistent with other collateralized financing transactions such as securities lending and repurchase agreements. The CTDOI permits Hartford Fire and HLA to pledge up to $1.3 billion and $0.5 billion in qualifying assets, respectively, without prior approval, to secure FHLBB advances in 2018. The pledge limit is determined annually based on statutory admitted assets and capital and surplus of Hartford Fire and HLA, respectively. As of September 30, 2018, there were no advances outstanding under either FHLBB facility.

Derivative Commitments

Certain of the Company’s derivative agreements contain provisions that are tied to the financial strength ratings, as set by nationally recognized statistical agencies, of the individual legal entity that entered into the derivative agreement. If the legal entity’s financial strength were to fall below certain ratings, the counterparties to the derivative agreements could demand immediate and ongoing full collateralization and in certain instances enable the counterparties to terminate the agreements and demand immediate settlement of all outstanding derivative positions traded under each impacted bilateral agreement. The settlement amount is determined by netting the derivative positions transacted under each agreement. If the termination rights were to be exercised by the counterparties, it could impact the legal entity’s ability to conduct hedging activities by increasing the associated costs and decreasing the willingness of counterparties to transact with the legal entity. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that are in a net liability position as of September 30, 2018 was $69. Of this $69, the legal entities have posted collateral of $68 in the normal course of business. Based on derivative market values as of September 30, 2018, a downgrade of one level below the current financial strength rates by either Moody's or S&P would not require additional assets to be posted as collateral. Based on derivative market values as of September 30, 2018, a downgrade of two levels below the current financial strength ratings by either Moody’s or S&P would require an additional $8 of assets to be posted as collateral. These collateral amounts could change as derivative market values change, as a result of changes in our hedging activities or to the extent changes in contractual terms are negotiated. The nature of the collateral that we would post, if required, would be primarily in the form of U.S. Treasury bills, U.S. Treasury notes and government agency securities.

As of September 30, 2018, no derivative positions would be subject to immediate termination in the event of a downgrade of one level below the current financial strength ratings. This could change as a result of changes in our hedging activities or to the

extent changes in contractual terms are negotiated.

Insurance Operations

While subject to variability period to period, underwriting and investment cash flows continue to be within historical norms and, therefore, the Company’s insurance operations’ current liquidity position is considered to be sufficient to meet anticipated demands over the next twelve months. For a discussion and tabular presentation of the Company’s current contractual obligations by period, refer to Off-Balance Sheet Arrangements and Aggregate Contractual Obligations within the Capital Resources and Liquidity section of the MD&A included in The Hartford’s 2017 Form 10-K Annual Report.

The principal sources of operating funds are premiums, fees earned from assets under management and investment income, while investing cash flows originate from maturities and sales of invested assets. The primary uses of funds are to pay claims, claim adjustment expenses, commissions and other underwriting and insurance operating costs, to pay taxes, to purchase new investments and to make dividend payments to the HFSG Holding Company.

The Company’s insurance operations consist of property and casualty insurance products (collectively referred to as “Property & Casualty Operations”) and Group Benefits.

Property & Casualty Operations

Property & Casualty Operations holds fixed maturity securities including a significant short-term investment position (securities with maturities of one year or less at the time of purchase) to meet liquidity needs as shown in the table below.

Property & Casualty
	As of September 30, 2018
Fixed maturities	$	25,446
Short-term investments	1,340
Cash	70
Less: Derivative collateral	62
Total	$	26,794

Liquidity requirements that are unable to be funded by Property & Casualty Operation’s short-term investments would be satisfied with current operating funds, including premiums or proceeds received through the sale of invested assets. A sale of invested assets could result in significant realized capital losses.

Group Benefits Operations

Group Benefits operations’ total unpaid loss and loss adjustment expense reserves of $8.5 billion are supported by $11.8 billion of cash and invested assets, including assets available to meet liquidity needs as shown below.

Group Benefits Operations
	As of September 30, 2018
Fixed maturities	$	9,898
Short-term investments	500
Cash	11
Less: Derivative collateral	20
Total	$	10,389

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Part I - Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Capital resources available to pay Group Benefits loss and loss adjustment expense reserves will be funded by Hartford Life and Accident Insurance Company.

Off-Balance Sheet Arrangements and Aggregate Contractual Obligations

There have been no material changes to the Company’s off-

balance sheet arrangements and aggregate contractual obligations since the filing of the Company’s 2017 Form 10-K Annual Report.

Capitalization

Capital Structure
	September 30, 2018			December 31, 2017			Change
Short-term debt (includes current maturities of long-term debt)	$	413		$	320		29	%
Long-term debt	4,263			4,678			(9	%)
Total debt	4,676			4,998			(6	%)
Stockholders’ equity excluding AOCI, net of tax	14,248			12,831			11	%
AOCI, net of tax	(1,519		)	663			NM
Total stockholders’ equity	$	12,729		$	13,494		(6	%)
Total capitalization	$	17,405		$	18,492		(6	%)
Debt to stockholders’ equity	37		%	37		%
Debt to capitalization	27		%	27		%

Total capitalization decreased $1,087, or 6%, as of September 30, 2018 compared to December 31, 2017 primarily due to decreases in net unrealized capital gains from securities within AOCI and a decrease in long-term debt.

For additional information on AOCI, net of tax, and unrealized capital gains from securities, see Note 15 - Changes In and

Reclassifications From Accumulated Other Comprehensive Income, and Note 6 - Investments of Notes to Condensed Consolidated Financial Statements. For additional information on Debt, see Note 11 - Debt.

Cash Flow[1]

	Nine Months Ended September 30,
	2018			2017
Net cash provided by operating activities	$	1,842		$	1,524
Net cash used for investing activities	$	(762	)	$	(1,485	)
Net cash used for financing activities	$	(1,691	)	$	(658	)
Cash – end of period	$	102		$	94

[1] Cash activities include cash flows from Discontinued Operations; see Note 18 - Business Dispositions and Discontinued Operations of Notes to Condensed Consolidated Financial Statements for information on cash flows from Discontinued Operations.

Cash provided by operating activitiesincreased in 2018 as compared to the prior year period primarily due to the effect of a $650 payment in 2017 for the ADC reinsurance agreement with NICO and the effect of an increase in premium and fee income received, partially offset by an increase in benefits, losses, insurance operating expenses and operating expenses paid that was mostly driven by the acquisition of the Aetna U.S. group life and disability business.

Cash used for investing activities decreased in 2018 compared to the prior year period primarily due proceeds from the 2018 sale of the Talcott Resolution run-off life and annuity business, which were used to acquire short term investments. Additionally, there was a change from net purchases of fixed maturities in the 2017 period to net proceeds from sales of fixed maturities in the 2018 period.

Cash used for financing activitiesincreased from the 2017 period primarily due to a change to a decrease in securities loaned or sold under agreements to repurchase, as well as an increase in debt repayments in 2018, partially offset by a reduction in treasury stock acquired as well a decrease in net payments for deposits, transfers and withdrawals for investments and universal life products due to the sale of Talcott in May, 2018.

Operating cash flowfor the nine months ended September 30, 2018 have been adequate to meet liquidity requirements.

Equity Markets

For a discussion of the potential impact of the equity markets on capital and liquidity, see the Financial Risk, Liquidity Risk and Financial Risk on Statutory Capital sections in this MD&A.

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Part I - Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Ratings

Ratings are an important factor in establishing a competitive position in the insurance marketplace and impact the Company's ability to access financing and its cost of borrowing. There can be no assurance that the Company’s ratings will continue for any given period of time, or that they will not be changed. In the event the Company’s ratings are downgraded, the Company’s competitive position, ability to access financing, and its cost of borrowing, may be adversely impacted.

Insurance Financial Strength Ratings as of October 23, 2018
	A.M. Best	Standard & Poor’s	Moody’s
Hartford Fire Insurance Company	A+	A+	A1
Hartford Life and Accident Insurance Company	A	A	A2
Other Ratings:
The Hartford Financial Services Group, Inc.:
Senior debt	a-	BBB+	Baa1
Commercial paper	AMB-1	A-2	P-2

These ratings are not a recommendation to buy or hold any of The Hartford’s securities and they may be revised or revoked at any time at the sole discretion of the rating organization.

The agencies consider many factors in determining the final rating of an insurance company. One consideration is the relative level of statutory capital and surplus (referred to collectively as "statutory capital") necessary to support the business written and is reported in accordance with accounting practices prescribed by the applicable state insurance department.

Statutory Capital

Statutory Capital Rollforward for the Company's Insurance Subsidiaries
	Property and Casualty Insurance Subsidiaries [1]			Group Benefits Insurance Subsidiary			Total
U.S statutory capital at January 1, 2018	$	7,396		$	2,029		$	9,425
Statutory income	1,028			247			1,275
Other items	(81		)	(8		)	(89		)
Net change to U.S. statutory capital	947			239			1,186
U.S statutory capital at September 30, 2018	$	8,343		$	2,268		$	10,611

[1] The statutory capital for property and casualty insurance subsidiaries in this table does not include the value of an intercompany note owed by HHI to Hartford Fire Insurance Company. Accordingly, neither the $1.9 billion principal paydown of the note nor an associated $1.9 billion of dividends to the holding company during the nine months endedSeptember 30, 2018 are reflected in this table.

Contingencies

Legal Proceedings

For a discussion regarding contingencies related to The Hartford’s legal proceedings, please see the information contained under “Litigation” and "Asbestos and Environmental Claims" in Note 13 - Commitments and Contingencies Notes to Condensed Consolidated Financial Statements and Part II, Item 1 Legal Proceedings, which are incorporated herein by reference.

Legislative and Regulatory Developments

Patient Protection and Affordable Care Act of 2010 (the "Affordable Care Act")

It is unclear whether the Administration and Congress will seek to amend or alter the ongoing operation of the Affordable Care Act ("ACA"). If such actions were to occur, they may have an impact on various aspects of our business, including our insurance businesses. It is unclear what an amended ACA would entail, and to what extent there may be a transition period for the phase out of the ACA. The impact to The Hartford as an employer would be consistent with other large employers. The Hartford’s core business does not involve the issuance of health insurance, and we have not observed any material impacts on the Company’s workers’ compensation

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Part I - Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

business or group benefits business from the enactment of the ACA. We will continue to monitor the impact of the ACA and any reforms on consumer, broker and medical provider behavior for leading indicators of changes in medical costs or loss payments primarily on the Company's workers' compensation and disability liabilities.

Tax Reform

At the end of 2017, Congress passed and the president signed, Tax Reform, which enacted significant reforms to the U.S. tax code. The major areas of interest to the company include the reduction of the corporate tax rate from 35% to 21% and the repeal of the corporate alternative minimum tax (AMT) and the refunding of AMT credits. We continue to analyze Tax Reform for other potential impacts. The U.S. Treasury and IRS have issued and continue to issue guidance implementing Tax Reform, and Congress may consider additional technical corrections to the legislation. Tax proposals and regulatory initiatives which have been or are being considered by Congress and/or the U.S. Treasury Department could have a material effect on the company and its insurance businesses. The nature and timing of any Congressional or regulatory action with respect to any such efforts is unclear. For additional information on risks to the Company related to Tax Reform, please see the risk factor entitled "Changes in federal or state tax laws could adversely affect our business, financial condition, results of operations and liquidity" under "Risk Factors" in Part I of the Company's Annual Report on Form 10-K for the year ended December 31, 2017.

IMPACT OF NEW ACCOUNTING STANDARDS

For a discussion of accounting standards, see Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements included in The Hartford’s 2017 Form 10-K Annual Report and Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Condensed Consolidated Financial Statements in this Form 10-Q.

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Part I - Item 4. Controls and Procedures

Item 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

The Company’s principal executive officer and its principal financial officer, based on their evaluation of the Company’s disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e)) have concluded that the Company’s disclosure controls and procedures are effective for the purposes set forth in the definition thereof in Exchange Act Rule 13a-15(e) as of September 30, 2018.

Changes in Internal Control Over Financial Reporting

There were no changes in the Company's internal control over financial reporting that occurred during the Company's current fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

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Part II - Item 1. Legal Proceedings

Item 1. LEGAL PROCEEDINGS

Litigation

The Hartford is involved in claims litigation arising in the ordinary course of business, both as a liability insurer defending or providing indemnity for third-party claims brought against insureds and as an insurer defending coverage claims brought against it. The Hartford accounts for such activity through the establishment of unpaid loss and loss adjustment expense reserves. Subject to the uncertainties related to The Hartford's A&E claims discussed in Note 13 - Commitments and Contingencies of the Notes to Condensed Consolidated Financial Statements, management expects that the ultimate liability, if any, with respect to such ordinary-course claims litigation, after consideration of provisions made for potential losses and costs of defense, will not be material to the consolidated financial condition, results of operations or cash flows of The Hartford.

The Hartford is also involved in other kinds of legal actions, some of which assert claims for substantial amounts. In addition to the matter described below, these actions include putative class actions seeking certification of a state or national class. Such putative class actions have alleged, for example, underpayment of claims or improper sales or underwriting practices in connection with various kinds of insurance policies, such as personal and commercial automobile, property, disability and inland marine. The Hartford also is involved in individual actions in which punitive damages are sought, such as claims alleging bad faith in the handling of insurance claims or other allegedly unfair or improper business practices. Like many other insurers, The Hartford also has been joined in actions by asbestos plaintiffs asserting, among other things, that insurers had a duty to protect the public from the dangers of asbestos and that insurers committed unfair trade practices by asserting defenses on behalf of their policyholders in the underlying asbestos cases. Management expects that the ultimate liability, if any, with respect to such lawsuits, after consideration of provisions made for estimated losses, will not be material to the consolidated financial condition of The Hartford. Nonetheless, given the large or indeterminate amounts sought in certain of these actions, and the inherent unpredictability of litigation, the outcome in certain matters could, from time to time, have a material adverse effect on the Company’s results of operations or cash flows in particular quarterly or annual periods.

Mutual Funds Litigation — In February 2011, a derivative action was brought on behalf of six Hartford retail mutual funds in the United States District Court for the District of New Jersey, alleging that Hartford Investment Financial Services, LLC (“HIFSCO”), an indirect subsidiary of the Company, received excessive advisory and distribution fees in violation of its statutory fiduciary duty under Section 36(b) of the Investment Company Act of 1940. During the course of the litigation, the claims regarding distribution fees were dismissed without prejudice, the lineup of funds as plaintiffs changed several times, and the plaintiffs added as a defendant Hartford Funds Management Company (“HFMC”), an indirect subsidiary of the Company that assumed the role of advisor to the funds as of January 2013. In June 2015, HFMC and HIFSCO moved for

summary judgment, and plaintiffs cross-moved for partial summary judgment with respect to one fund. In March 2016, the court denied the plaintiff's motion, and granted summary judgment for HIFSCO and HFMC with respect to one fund, leaving six funds as plaintiffs: The Hartford Balanced Fund, The Hartford Capital Appreciation Fund, The Hartford Floating Rate Fund, The Hartford Growth Opportunities Fund, The Hartford Healthcare Fund, and The Hartford Inflation Plus Fund. A bench trial on the issue of liability was held in November 2016. In February 2017, the court granted judgment for HIFSCO and HFMC as to all claims. Plaintiffs appealed. In August 2018, the judgment was affirmed by the United States Court of Appeals for the Third Circuit. Although plaintiffs may still seek review by the United States Supreme Court, management believes that the possibility of a material adverse outcome in this matter is remote.

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Part II - Item 1A. Risk Factors

Item 1A.    RISK FACTORS

Investing in The Hartford involves risk. In deciding whether to invest in The Hartford, you should carefully consider the risk factors disclosed below and in Item 1A of Part I of the Company's Annual Report on Form 10-K for the year ended December 31, 2017, as updated by Item 1A of Part II of the Company's Form 10-Q for the period ended June 30, 2018, any of which could have a significant or material adverse effect on the business, financial condition, operating results or liquidity of The Hartford. This information should be considered carefully together with the other information contained in this report and the other reports and materials filed by The Hartford with the SEC.

Strategic and Operational Risks

Failure to complete our proposed acquisition of Navigators Group could impact our securities.  

The completion of the Navigators Group acquisition is subject to a number of conditions, including the approval of Navigators Group’s shareholders and the receipt of required antitrust and insurance regulatory approvals. The failure to satisfy all the required conditions could prevent the acquisition from occurring. In addition, regulators could impose additional requirements or obligations as conditions for their approvals, which may be burdensome. We can provide no assurance that we will obtain the necessary approvals within the estimated timeframe or at all, or that any such requirements that are imposed by regulators would not result in the termination of the transaction. Investors’ reactions to a failure to complete the Navigators Group acquisition, including possible speculation about alternative uses of capital, may cause volatility in our securities. A failure to complete a proposed transaction of this nature can also result in litigation by shareholders and other disaffected parties. Furthermore, we will have incurred costs, and devoted management time and resources, in connection with the transaction for which we will receive little or no benefit. In addition, even if we complete the proposed Navigators Group acquisition, we may not be able to successfully integrate Navigators Group into our business and therefore may not be able to achieve the synergies we would expect to receive as a result of the acquisition. 

115

Part II - Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Purchases of Equity Securities by the Issuer

The Company does not currently have an equity repurchase authorization in 2018.

116

Part II - Item 6. Exhibits

Item 6. EXHIBITS

See Exhibits Index on page 118.

117

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

FOR THE QUARTER ENDED SEPTEMBER 30, 2018

FORM 10-Q

EXHIBITS INDEX

Exhibit No.	Description	Form	File No.	Exhibit No	Filing Date
2.01	Agreement and Plan of Merger, dated as of August 22, 2018, by and among The Navigators Group, Inc., The Hartford Financial Services Group, Inc. and Renato Acquisition Co.	8-K/A	001-13958	2.1	8/22/2018
3.01	Restated Certificate of Incorporation of The Hartford, as filed with the Delaware Secretary of State on October 20, 2014.	8-K	001-13958	3.1	10/20/2014
3.02	Amended and Restated By-Laws of The Hartford, amended effective July 21, 2016.	8-K	001-13958	3.1	7/21/2016
15.01	Deloitte & Touche LLP Letter of Awareness.**
31.01	Certification of Christopher J. Swift pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.**
31.02	Certification of Beth A. Bombara pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.**
32.01	Certification of Christopher J. Swift pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**
32.02	Certification of Beth A. Bombara pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**
99.01	Voting Agreement, dated as of August 22, 2018, by and among The Hartford Financial Services Group, Inc., Terence N. Deeks, Monica J. Deeks, the Deeks Family Foundation and the trusts for the benefit of members of the Deeks family that are parties thereto	8-K/A	001-13958	99.2	8/22/2018
99.02	Voting Agreement, dated as of August 22, 2018, by and between The Hartford Financial Services Group, Inc. and Stanley A. Galanski	8-K/A	001-13958	99.3	8/22/2018
101.INS	XBRL Instance Document.**
101.SCH	XBRL Taxonomy Extension Schema.**
101.CAL	XBRL Taxonomy Extension Calculation Linkbase.**
101.DEF	XBRL Taxonomy Extension Definition Linkbase.**
101.LAB	XBRL Taxonomy Extension Label Linkbase.**
101.PRE	XBRL Taxonomy Extension Presentation Linkbase.**
**	Filed with the Securities and Exchange Commission as an exhibit to this report.

118

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.

		The Hartford Financial Services Group, Inc.
		(Registrant)
Date:	October 25, 2018	/s/ Scott R. Lewis
		Scott R. Lewis
		Senior Vice President and Controller
		(Chief accounting officer and duly authorized signatory)

119

EX-15.01

Exhibit 15.01

October 25, 2018

The Hartford Financial Services Group, Inc.

One Hartford Plaza

Hartford, Connecticut

We have reviewed, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the unaudited interim financial information of The Hartford Financial Services Group, Inc. and subsidiaries (the “Company”) for the periods ended September 30, 2018, and 2017, as indicated in our report dated October 25, 2018; because we did not perform an audit, we expressed no opinion on that information.

We are aware that our report referred to above, which is included in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2018, is incorporated by reference in the following registration statements:

Form S-3 Registration No.	Form S-8 Registration Nos.
333-212778	333-105707
	333-49170
	333-105706
	333-34092
	033-80665
	333-12563
	333-125489
	333-157372
	333-160173
	333-168537
	333-197671

We also are aware that the aforementioned report, pursuant to Rule 436(c) under the Securities Act of 1933, is not considered a part of the Registration Statement prepared or certified by an accountant or a report prepared or certified by an accountant within the meaning of Sections 7 and 11 of that Act.

/s/ DELOITTE & TOUCHE LLP

Hartford, Connecticut

120

EX-31.01

Exhibit 31.01

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ENACTED BY SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Christopher J. Swift, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of The Hartford Financial Services Group, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	October 25, 2018	/s/ Christopher J. Swift
		Christopher J. Swift
		Chief Executive Officer

121

EX-31.02

Exhibit 31.02

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ENACTED BY SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Beth A Bombara, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of The Hartford Financial Services Group, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	October 25, 2018	/s/ Beth A. Bombara
		Beth A. Bombara
		Executive Vice President and Chief Financial Officer

122

EX-32.01

Exhibit 32.01

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ENACTED BY SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q for the period ended September 30, 2018 of The Hartford Financial Services Group, Inc. (the “Company”), filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned hereby certifies, pursuant to 18 U.S.C. section 1350 as enacted by section 906 of the Sarbanes-Oxley Act of 2002, that:

1) The Report fully complies with the requirements of section 13(a) or section 15(d) of the Securities Exchange Act of 1934; and

2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	October 25, 2018	/s/ Christopher J. Swift
		Christopher J. Swift
		Chief Executive Officer

123

EX-32.02

Exhibit 32.02

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ENACTED BY SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q for the period ended September 30, 2018 of The Hartford Financial Services Group, Inc. (the “Company”), filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned hereby certifies, pursuant to 18 U.S.C. section 1350 as enacted by section 906 of the Sarbanes-Oxley Act of 2002, that:

1) The Report fully complies with the requirements of section 13(a) or section 15(d) of the Securities Exchange Act of 1934; and

2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	October 25, 2018	/s/ Beth A Bombara
		Beth A Bombara
		Executive Vice President and Chief Financial Officer

124

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Document and Entity Information Document - Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Oct. 23, 2018
Document - Entity Information [Abstract]
Entity Registrant Name	HARTFORD FINANCIAL SERVICES GROUP INC/DE
Entity Central Index Key	0000874766
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		358,734,819

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Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues
Premiums Earned, Net	$ 3,987	$ 3,447	$ 11,872	$ 10,340
Fee income	344	291	994	855
Net investment income	444	404	1,323	1,209
Net realized capital gains (losses):
Total other-than-temporary impairment (OTTI) losses	(4)	(4)	(6)	(11)
OTTI losses recognized in other comprehensive income (“OCI”)	3	3	5	7
Net OTTI losses recognized in earnings	(1)	(1)	(1)	(4)
Other net realized capital gains	39	27	61	109
Total net realized capital gains	38	26	60	105
Other revenues	(29)	(24)	(73)	(66)
Total revenues	4,842	4,192	14,322	12,575
Benefits, losses and expenses
Benefits, losses and loss adjustment expenses	2,786	2,638	8,219	7,482
Amortization of deferred policy acquisition costs (DAC)	348	341	1,034	1,030
Insurance operating costs and other expenses	1,091	952	3,195	3,521
Loss on extinguishment of debt	0	0	6	0
Interest expense	69	79	228	238
Amortization of other intangible assets	18	1	54	3
Total benefits, losses and expenses	4,312	4,011	12,736	12,274
Income from continuing operations before income taxes	530	181	1,586	301
Income tax expense	103	36	297	5
Income from continuing operations, net of tax	427	145	1,289	296
Income from discontinued operations, net of tax	5	89	322	276
Net income	$ 432	$ 234	$ 1,611	$ 572
Income from continuing operations, net of tax, per common share
Income from continuing operations, net of tax	$ 1.19	$ 0.40	$ 3.60	$ 0.81
Diluted	1.17	0.40	3.54	0.79
Basic	1.20	0.65	4.50	1.56
Diluted	1.19	0.64	4.42	1.54
Cash dividends declared per common share	$ 0.30	$ 0.23	$ 0.80	$ 0.69

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Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 432	$ 234	$ 1,611	$ 572
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Changes in net unrealized gain on securities	(171)	85	(2,164)	564
Changes in OTTI losses recognized in other comprehensive income	(1)	(1)	(1)	(1)
Changes in net gain on cash flow hedging instruments	(5)	(14)	(37)	(33)
Changes in foreign currency translation adjustments	1	14	(4)	21
Changes in pension and other postretirement plan adjustments	10	7	29	371
OCI, net of tax	(166)	91	(2,177)	922
Comprehensive income (loss)	$ 266	$ 325	$ (566)	$ 1,494

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Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Investments:
Fixed maturities, available-for-sale, at fair value (amortized cost of $36,094 and $35,612)	$ 36,166	$ 36,964
Fixed maturities, at fair value using the fair value option	24	41
Equity securities, at fair value	1,035	0
Equity securities, available-for-sale, at fair value (cost of $0 and $907)	0	1,012
Mortgage loans (net of allowances for loan losses of $1 and $1)	3,559	3,175
Limited partnerships and other alternative investments	1,712	1,588
Other investments	98	96
Short-term investments	3,540	2,270
Total investments	46,134	45,146
Cash	102	180
Premiums receivable and agents’ balances, net	4,025	3,910
Reinsurance recoverables, net	3,931	4,061
Deferred policy acquisition costs	670	650
Deferred income taxes, net	1,244	1,164
Goodwill	1,290	1,290
Property and equipment, net	997	1,034
Other intangible assets, net	651	659
Other assets	2,393	2,230
Assets held for sale	0	164,936
Total assets	61,437	225,260
Liabilities
Unpaid losses and loss adjustment expenses	32,297	32,287
Reserve for future policy benefits	656	713
Other policyholder funds and benefits payable	775	816
Unearned premiums	5,388	5,322
Short-term debt	413	320
Long-term debt	4,263	4,678
Other liabilities	4,916	5,188
Disposal Group, Including Discontinued Operation, Liabilities	0	162,442
Total liabilities	48,708	211,766
Stockholders' Equity
Common stock, $0.01 par value — 1,500,000,000 shares authorized, 384,923,222 shares issued at September 30, 2018 and December 31, 2017	4	4
Additional paid-in capital	4,385	4,379
Retained earnings	10,973	9,642
Treasury stock, at cost — 26,247,219 and 28,088,186 shares	(1,114)	(1,194)
Accumulated other comprehensive income (loss), net of tax	(1,519)	663
Total stockholders’ equity	12,729	13,494
Total liabilities and stockholders’ equity	$ 61,437	$ 225,260

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Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Fixed maturities, available-for-sale, at fair value (amortized cost of $36,094 and $35,612)	$ 36,094	$ 35,612
Equity securities, available-for-sale, at fair value (cost of $0 and $907)	0	907
Mortgage loans (net of allowances for loan losses of $1 and $1)	$ 1	$ 1
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	1,500,000,000	1,500,000,000
Common stock, $0.01 par value — 1,500,000,000 shares authorized, 384,923,222 shares issued at September 30, 2018 and December 31, 2017	384,923,222	384,923,222.00
Treasury stock, at cost — 26,247,219 and 28,088,186 shares	26,247,219	28,088,186

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Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Millions	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	AOCI Attributable to Parent [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of accounting change net of income taxes				$ 0		$ 0
Adjusted balance, beginning of period				13,114		(337)
Beginning balance at Dec. 31, 2016			$ 5,247	13,114	$ (1,125)	(337)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of shares under incentive and stock compensation plans			(68)
Stock-based compensation plans expense			77
Issuance of shares for warrant exercise			(65)		65
Net income	$ 572			572
Dividends declared on common stock				(252)
Treasury stock acquired					(975)
Issuance of shares under incentive and stock compensation plans					90
Net shares acquired related to employee incentive and stock compensation plans					36
Total other comprehensive income (loss)						922
Ending balance at Sep. 30, 2017	17,233	$ 4	5,191	13,434	(1,981)	585
Common Shares Outstanding, beginning of period (in thousands) at Dec. 31, 2016		373,949
Stock Issued or Granted During Period, Share-based Compensation [Abstract]
Treasury stock acquired		19,281
Issuance of shares under incentive and stock compensation plans		2,078
Return of shares under incentive and stock compensation plans to treasury stock		718
Issuance of shares for warrant exercise		1,512
Common Shares Outstanding, at end of period at Sep. 30, 2017		357,540
Beginning balance at Jun. 30, 2017						494
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	234
Ending balance at Sep. 30, 2017	17,233	$ 4	5,191	13,434	(1,981)	585
Common Shares Outstanding, at end of period at Sep. 30, 2017		357,540
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of accounting change net of income taxes				5		(5)
Adjusted balance, beginning of period				9,647		658
Beginning balance at Dec. 31, 2017	13,494		4,379	9,642	(1,194)	663
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of shares under incentive and stock compensation plans			(92)
Stock-based compensation plans expense			105
Issuance of shares for warrant exercise			(7)		7
Net income	1,611			1,611
Dividends declared on common stock				(285)
Treasury stock acquired					0
Issuance of shares under incentive and stock compensation plans					109
Net shares acquired related to employee incentive and stock compensation plans					36
Total other comprehensive income (loss)						(2,177)
Ending balance at Sep. 30, 2018	12,729	$ 4	4,385	10,973	(1,114)	(1,519)
Common Shares Outstanding, beginning of period (in thousands) at Dec. 31, 2017		356,835
Stock Issued or Granted During Period, Share-based Compensation [Abstract]
Treasury stock acquired		0
Issuance of shares under incentive and stock compensation plans		2,373
Return of shares under incentive and stock compensation plans to treasury stock		694
Issuance of shares for warrant exercise		162
Common Shares Outstanding, at end of period at Sep. 30, 2018		358,676
Beginning balance at Jun. 30, 2018						(1,353)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	432
Ending balance at Sep. 30, 2018	$ 12,729	$ 4	$ 4,385	$ 10,973	$ (1,114)	$ (1,519)
Common Shares Outstanding, at end of period at Sep. 30, 2018		358,676

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Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Operating Activities
Net income	$ 1,611	$ 572
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Net realized capital gains	(7)	(52)
Amortization of deferred policy acquisition costs	1,092	1,088
Additions to deferred policy acquisition costs	(1,057)	(1,039)
Depreciation and amortization	359	300
Loss on extinguishment of debt	(6)	0
Gain on sale	202	0
Pension settlement	0	747
Other operating activities, net	346	328
Change in assets and liabilities:
Decrease in reinsurance recoverables	111	43
Decrease (increase) in accrued and deferred income taxes	74	(64)
Increase (decrease) in unpaid losses and loss adjustment expenses, reserve for future policy benefits, and unearned premiums	(119)	845
Net change in other assets and other liabilities	(224)	(1,372)
Net cash provided by operating activities	1,842	1,524
Proceeds from the sale/maturity/prepayment of:
Fixed maturities, available-for-sale	20,069	21,371
Fixed maturities, fair value option	21	140
Fixed maturities, fair value option	1,171	0
Equity securities, available-for-sale	0	599
Mortgage loans	314	558
Partnerships	377	190
Proceeds from repurchase agreements program	(11)	0
Payments for the purchase of:
Fixed maturities, available-for-sale	(18,679)	(22,021)
Equity securities, at fair value	(1,084)	0
Equity securities, available-for-sale	0	(517)
Mortgage loans	(667)	(943)
Partnerships	(408)	(344)
Repayments of repurchase agreements program	42	0
Net payments for derivatives	(228)	(98)
Net payments for derivatives	(70)	(129)
Net payments for short-term investments	(2,720)	(523)
Other investing activities, net	(4)	10
Proceeds from business sold, net of cash transferred	1,115	222
Net cash used for investing activities	(762)	(1,485)
Financing Activities
Deposits and other additions to investment and universal life-type contracts	1,814	3,628
Withdrawals and other deductions from investment and universal life-type contracts	(9,210)	(10,623)
Net transfers from separate accounts related to investment and universal life-type contracts	6,949	6,080
Repayments at maturity or settlement of consumer notes	(2)	(12)
Net increase (decrease) in securities loaned or sold under agreements to repurchase	(646)	1,434
Repayment of debt	(826)	(416)
Proceeds from the issuance of debt	(490)	(500)
Net issuance (return) of shares under incentive and stock compensation plans	10	(16)
Treasury stock acquired		(975)
Dividends paid on common stock	(270)	(258)
Net cash used for financing activities	(1,691)	(658)
Foreign exchange rate effect on cash	(4)	70
Net decrease in cash, including cash classified as assets held for sale	(615)	(549)
Less: Net decrease in cash classified as assets held for sale	(537)	(315)
Net (decrease) in cash	(78)	(234)
Cash – beginning of period	180	328
Cash – end of period	102	94
Supplemental Disclosure of Cash Flow Information
Income tax received (paid)	(1)	3
Interest paid	$ 197	$ 205

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Basis of Presentation and Significant Accounting Policies

9 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Basis of Presentation and Accounting Policies

Basis of Presentation

The Hartford Financial Services Group, Inc. is a holding company for insurance and financial services subsidiaries that provide property and casualty insurance, group life and disability products and mutual funds and exchange-traded products to individual and business customers in the United States (collectively, “The Hartford”, the “Company”, “we” or “our”).

On August 22, 2018, the Company announced it entered into a definitive agreement to acquire all outstanding common shares of The Navigators Group, Inc. ("Navigators Group"), a global specialty underwriter, for $70 a share, or $2.1 billion in cash. The transaction is expected to close in the first half of 2019, subject to approval by Navigators Group's shareholders and other customary closing conditions, including receipt of regulatory approvals.

On May 31, 2018, Hartford Holdings, Inc., a wholly owned subsidiary of the Company, completed the sale of the issued and outstanding equity of Hartford Life, Inc. (“HLI”), a holding company for its life and annuity operating subsidiaries. For further discussion of this transaction, see Note 18 - Business Dispositions and Discontinued Operations of Notes to Condensed Consolidated Financial Statements.

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 business through a reinsurance transaction. For further discussion of this transaction, see Note 2 - Business Acquisitions of Notes to Condensed Consolidated Financial Statements.

On May 10, 2017, the Company completed the sale of its United Kingdom ("U.K.") property and casualty run-off subsidiaries.

The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, which differ materially from the accounting practices prescribed by various insurance regulatory authorities. These Condensed Consolidated Financial Statements and Notes should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company's 2017 Form 10-K Annual Report. The results of operations for interim periods are not necessarily indicative of the results that may be expected for the full year.

The accompanying Condensed Consolidated Financial Statements and Notes are unaudited. These financial statements reflect all adjustments (generally consisting only of normal accruals) which are, in the opinion of management, necessary for the fair presentation of the financial position, results of operations and cash flows for the interim periods. The Company's significant accounting policies are summarized in Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements included in the Company's 2017 Form 10-K Annual Report.

Consolidation

The Condensed Consolidated Financial Statements include the accounts of The Hartford Financial Services Group, Inc., and entities in which the Company directly or indirectly has a controlling financial interest. Entities in which the Company has significant influence over the operating and financing decisions but does not control are reported using the equity method. All intercompany transactions and balances between The Hartford and its subsidiaries and affiliates that are not held for sale have been eliminated.

Discontinued Operations

The results of operations of a component of the Company are reported in discontinued operations when certain criteria are met as of the date of disposal, or earlier if classified as held-for-sale. When a component is identified for discontinued operations reporting, amounts for prior periods are retrospectively reclassified as discontinued operations. Components are identified as discontinued operations if they are a major part of an entity's operations and financial results such as a separate major line of business or a separate major geographical area of operations.

Use of Estimates

The preparation of financial statements, in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The most significant estimates include those used in determining property and casualty and group long-term disability insurance product reserves, net of reinsurance; evaluation of goodwill for impairment; valuation of investments and derivative instruments; valuation allowance on deferred tax assets; and contingencies relating to corporate litigation and regulatory matters.

Reclassifications

Certain reclassifications have been made to prior year financial information to conform to the current year presentation. In particular:

• Distribution costs within the Mutual Funds segment that were previously netted against fee income are presented gross in insurance operating costs and other expenses.

Adoption of New Accounting Standards

Reclassification of Effect of Tax Rate Change from AOCI to Retained Earnings

On January 1, 2018, the Company adopted the FASB's new guidance for the effect on deferred tax assets and liabilities related to items recorded in accumulated other comprehensive income ("AOCI") resulting from the Tax Cuts and Jobs Act of 2017 ("Tax Reform") enacted on December 22, 2017. Tax Reform reduced the federal tax rate applied to the Company’s deferred tax balances from 35% to 21% on enactment. Under U.S. GAAP, the Company recorded the total effect of the change in enacted tax rates on deferred tax balances as a charge to income tax expense within net income during the fourth quarter of 2017, including the change in deferred tax balances related to components of AOCI. The new accounting guidance permitted the Company to reclassify the “stranded” tax effects out of AOCI and into retained earnings that resulted from recording the tax effects of unrealized investment gains, unrecognized actuarial losses on pension and other postretirement benefit plans, and cumulative translation adjustments at a 35% tax rate because the 14 point reduction in tax rate was recognized in net income instead of other comprehensive income. On adoption, the Company recorded a reclassification of $88 from AOCI to retained earnings. As a result of the reclassification, in the first quarter of 2018, the Company reduced the estimated loss on sale recorded in income from discontinued operations by $193, net of tax, for the increase in AOCI related to the assets held for sale. The reduction in the loss on sale resulted in a corresponding increase in assets held for sale and AOCI as of January 1, 2018 and the AOCI associated with assets held for sale was removed from the balance sheet when the sale closed on May 31, 2018. Additionally, as of January 1, 2018, the Company reclassified $105 of stranded tax effects related to continuing operations which reduced AOCI and increased retained earnings.

Financial Instruments- Recognition and Measurement

On January 1, 2018, the Company adopted updated guidance issued by the FASB for the recognition and measurement of financial instruments through a cumulative effect adjustment to the opening balances of retained earnings and AOCI. The new guidance requires investments in equity securities to be measured at fair value with any changes in valuation reported in net income except for investments that are consolidated or are accounted for under the equity method of accounting. The new guidance also requires a deferred tax asset resulting from net unrealized losses on available-for-sale fixed maturities that are recognized in AOCI to be evaluated for recoverability in combination with the Company’s other deferred tax assets. Under prior guidance, the Company reported equity securities, available for sale ("AFS"), at fair value with changes in fair value reported in other comprehensive income. As of January 1, 2018, the Company reclassified from AOCI to retained earnings net unrealized gains of $83, after tax, related to equity securities having a fair value of $1.0 billion. In addition, $10 of net unrealized gains net of shadow DAC related to discontinued operations were reclassified from AOCI to retained earnings of the life and annuity run-off business held for sale, which increased the estimated loss on sale in 2018 by the same amount. Beginning in 2018, the Company reports equity securities at fair value with changes in fair value reported in net realized capital gains and losses.

Revenue Recognition

On January 1, 2018, the Company adopted the FASB’s updated guidance for recognizing revenue from contracts with customers, which excludes insurance contracts and financial instruments. Revenue subject to the guidance is recognized when, or as, goods or services are transferred to customers in an amount that reflects the consideration that an entity is expected to receive in exchange for those goods or services. For all but certain revenues associated with our Mutual Funds business, the updated guidance is consistent with previous guidance for the Company’s transactions and did not have an effect on the Company’s financial position, cash flows or net income. The updated guidance also updated criteria for determining when the Company acts as a principal or an agent. The Company determined that it is the principal for some of its mutual fund distribution service contracts and, upon adoption, reclassified distribution costs of $48 and $140 for the three and nine months ended September 30,2017, respectively, that were previously netted against fee income to insurance operating costs and other expenses.

Information about the nature, amount, timing of recognition and cash flows for the Company’s revenues subject to the updated guidance follows.

Revenue from Non-Insurance Contracts with Customers

		Three months ended September 30,				Nine months ended September 30,
	Revenue Line Item	2018		2017		2018		2017
Commercial Lines
Installment billing fees	Fee income	$	9	$	9	$	26	$	28
Personal Lines
Installment billing fees	Fee income	10		11		30		33
Insurance servicing revenues	Other revenues	24		24		66		66
Group Benefits
Administrative services	Fee income	43		19		131		57
Mutual Funds
Advisor, distribution and other management fees	Fee income	245		229		722		660
Other fees	Fee income	21		22		63		75
Corporate
Investment management and other fees	Fee income	15		1		21		2
Transition service revenues	Other revenues	6		—		8		—
Total revenues subject to updated guidance		$	373	$	315	$	1,067	$	921

Installment fees are charged on property and casualty insurance contracts for billing the insurance customer in installments over the policy term. These fees are recognized in fee income as earned on collection.

Insurance servicing revenues within Personal Lines consist of up-front commissions earned for collecting premiums and processing claims on insurance policies for which The Hartford does not assume underwriting risk, predominantly related to the National Flood Insurance Plan program. These insurance servicing revenues are recognized over the period of the flood program's policy terms.

Group Benefits products earn fee income from employers for the administration of underwriting, implementation and claims processing for employer self-funded plans and for leave management services. Fees are recognized as services are provided and collected monthly.

The Company provides investment management, administrative and distribution services to mutual funds and exchange-traded products. The Company assesses investment advisory, distribution and other asset management fees primarily based on the average daily net asset values from mutual funds and exchange-traded products, which are recorded in the period in which the services are provided and collected monthly. Fluctuations in domestic and international markets and related investment performance, volume and mix of sales and redemptions of mutual funds or exchange-traded products, and other changes to the composition of assets under management are all factors that ultimately have a direct effect on fee income earned.

Mutual Funds other fees primarily include transfer agent fees, generally assessed as a charge per account, and are recognized as fee income in the period in which the services are provided with payments collected monthly.

Corporate investment management and other fees are primarily for managing third party invested assets, including management of the invested assets of the Talcott Resolution life and annuity run-off business sold in the second quarter of 2018 ("Talcott Resolution"). These fees, calculated based on the average quarterly net asset values, are recorded in the period in which the services are provided and are collected quarterly. Fluctuations in markets and interest rates and other changes to the composition of assets under management are all factors that ultimately have a direct effect on fee income earned.

Corporate transition service revenues consist of operational services provided to The Hartford’s former life and annuity run-off business that will be provided for a period up to 24 months from the May 31, 2018 sale date. The transition service revenues are recognized as other revenues in the period in which the services are provided with payments collected monthly.

Future Adoption of New Accounting Standards

Hedging Activities

The FASB issued updated guidance on hedge accounting. See Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements included in the Company's 2017 Form 10-K Annual Report for more information on the future adoption of the new hedging activities accounting standard. The Company will adopt the updated guidance January 1, 2019, as required, although earlier adoption is permitted. The adoption is not expected to have a material effect on the Company’s financial position, cash flows or net income.

Leases

In accordance with the FASB’s update to its new lease accounting standard, the Company will adopt the new guidance as of the January 1, 2019 effective date with no change to comparative periods. See Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements included in the Company's 2017 Form 10-K Annual Report for more information on the future adoption of the new lease accounting standard. We do not expect a material impact to the consolidated financial statements; however, it is expected that assets and liabilities will increase based on the present value of remaining lease payments for leases in place at the adoption date.

Reserve for Future Policy Benefits

The FASB issued new guidance on accounting for long-duration insurance contracts. The Company’s long-duration insurance contracts include paid-up life insurance and whole-life insurance policies resulting from conversion from group life policies and run-off structured settlement and terminal funding agreement liabilities. Under existing guidance, a reserve for future policy benefits is calculated as the present value of future benefits and related expenses less the present value of any future premiums using assumptions “locked in” at the time the policies were issued, including discount rate, lapse rate, mortality, and expense assumptions. Under existing guidance, assumptions are only updated if there is an expected premium deficiency. The new guidance will require that underlying cash flow assumptions (such as for lapse rate, mortality and expenses) be reviewed and updated at least annually in the same quarter each year. The new guidance also requires that the discount rate assumption be updated each quarter and be based on an upper-medium grade (low-credit-risk) fixed-income investment yield. The change in the reserve estimate as a result of updating cash flow assumptions will be recognized in net income. The change in the reserve estimate as a result of updating the discount rate assumption will be recognized in other comprehensive income. Because reserves will be based on updated assumptions and no longer locked in at contract inception, there will no longer be a test for premium deficiency. The new guidance will be effective January 1, 2021, and will be applied to balances in place as of the earliest period presented. Early adoption is permitted. The Company has not yet determined the method or timing for adoption or estimated the effect on the Company’s financial statements.

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Business Acquisitions

9 Months Ended

Sep. 30, 2018

Business Combinations [Abstract]

Business Acquisitions

Aetna Group Insurance

On November 1, 2017, The Hartford acquired Aetna's U.S. group life and disability business through a reinsurance transaction for total consideration of $1.452 billion and recorded provisional estimates of the fair value of the assets acquired and liabilities assumed. In September 2018, The Hartford and Aetna agreed on the final assets acquired and liabilities assumed as of the acquisition date and The Hartford finalized its provisional estimates with a final cash settlement in October. As a result, in the third quarter of 2018, The Hartford recorded additional assets and liabilities at fair value of $80 and $80, respectively, with no change in goodwill. The following table presents the preliminary allocation of the purchase price to the assets acquired and liabilities assumed as of the acquisition date, the measurement period adjustments recorded, and the final purchase price allocation.

Fair Value of Assets Acquired and Liabilities Assumed at the Acquisition Date

	Preliminary Value as of November 1, 2017 (as previously reported as of December 31, 2017)		Measurement Period Adjustments			As Adjusted Value as of November 1, 2017
Assets
Cash and invested assets [1]	$	3,360	$	45		$	3,405
Premiums receivable	96		7			103
Deferred income taxes, net	56		13			69
Other intangible assets	629		—			629
Property and equipment	68		—			68
Reinsurance recoverables	—		31			31
Other assets	16		(16		)	—
Total Assets Acquired	4,225		80			4,305
Liabilities
Unpaid losses and loss adjustment expenses	2,833		71			2,904
Reserve for future policy benefits payable	346		1			347
Other policyholder funds and benefits payable	245		1			246
Unearned premiums	3		1			4
Other liabilities	69		6			75
Total Liabilities Assumed	3,496		80			3,576
Net identifiable assets acquired	729		—			729
Goodwill [2]	723		—			723
Net Assets Acquired	$	1,452	$	—		$	1,452

[1] Includes $45 of cash received from Aetna in October 2018 in settlement of the final balance sheet and reported as a receivable in other assets in the Condensed Consolidated Balance Sheet as of September 30, 2018.

[2] Approximately $610 is deductible for income tax purposes.

The effect of measurement period adjustments on the Condensed Consolidated Statements of Operations for the three and nine months endedSeptember 30, 2018 was immaterial and was determined as if the accounting had been completed as of the acquisition date.

The following table presents supplemental pro forma amounts of revenue and net income for the Company for the three and nine months endedSeptember 30, 2017, as though the business was acquired on January 1, 2016.

Pro Forma Results

	Three months ended September 30, 2017 [1]		Nine months ended September 30, 2017 [1]
Total Revenue	$	4,777	$	14,309
Net Income	$	249	$	619

[1]Pro forma adjustments include the revenue and earnings of the Aetna U.S. group life and disability business as well as amortization of identifiable intangible assets acquired and the fair value adjustment to acquired insurance reserves. Pro forma adjustments do not include retrospective adjustments to defer and amortize acquisition costs as would be recorded under the Company’s accounting policy.

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Earnings Per Common Share

9 Months Ended

Sep. 30, 2018

Earnings Per Share [Abstract]

Earnings Per Common Share

Computation of Basic and Diluted Earnings per Common Share
	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions, except for per share data)	2018		2017		2018		2017
Earnings
Income from continuing operations, net of tax	$	427	$	145	$	1,289	$	296
Income from discontinued operations, net of tax	5		89		322		276
Net income	$	432	$	234	$	1,611	$	572
Shares
Weighted average common shares outstanding, basic	358.6		360.2		358.1		365.9
Dilutive effect of stock compensation plans	3.6		4.5		4.0		4.1
Dilutive effect of warrants	1.9		2.3		2.0		2.6
Weighted average common shares outstanding and dilutive potential common shares	364.1		367.0		364.1		372.6
Net income per common share
Basic
Income from continuing operations, net of tax	$	1.19	$	0.40	$	3.60	$	0.81
Income from discontinued operations, net of tax	$	0.01	$	0.25	$	0.90	$	0.75
Net income per common share	$	1.20	$	0.65	$	4.50	$	1.56
Diluted
Income from continuing operations, net of tax	$	1.17	$	0.40	$	3.54	$	0.79
Income from discontinued operations, net of tax	$	0.02	$	0.24	$	0.88	$	0.75
Net income per common share	$	1.19	$	0.64	$	4.42	$	1.54

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Segment Information

9 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

Segment Information

The Company currently conducts business principally in five reporting segments including Commercial Lines, Personal Lines, Property & Casualty Other Operations, Group Benefits and Mutual Funds, as well as a Corporate category. 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 a 9.7% ownership interest in the limited partnership that acquired Talcott Resolution. For further discussion of continued involvement with Talcott Resolution, see Note 18 - Business Dispositions and Discontinued Operations of Notes to Condensed Consolidated Financial Statements.

The Company's revenues are generated primarily in the United States ("U.S."). Any foreign sourced revenue is immaterial.

Net Income

	Three Months Ended September 30,					Nine Months Ended September 30,
	2018			2017		2018		2017
Commercial Lines	$	289		$	90	$	959	$	579
Personal Lines	51			8		146		65
Property & Casualty Other Operations	9			18		31		62
Group Benefits	77			71		227		185
Mutual Funds	41			26		112		73
Corporate	(35		)	21		136		(392		)
Net income	$	432		$	234	$	1,611	$	572

Revenues

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Earned premiums and fee income
Commercial Lines
Workers’ compensation	$	845	$	828	$	2,495	$	2,461
Liability	170		150		480		450
Package business	343		325		1,013		965
Automobile	157		155		454		477
Professional liability	65		63		190		183
Bond	60		59		179		172
Property	154		152		456		451
Total Commercial Lines	1,794		1,732		5,267		5,159
Personal Lines
Automobile	598		653		1,809		1,975
Homeowners	261		279		785		843
Total Personal Lines [1]	859		932		2,594		2,818
Group Benefits
Group disability	684		386		2,051		1,146
Group life	652		383		1,968		1,176
Other	60		53		179		159
Total Group Benefits	1,396		822		4,198		2,481
Mutual Funds
Mutual fund and Exchange-Traded Products ("ETP") [2]	242		225		710		657
Talcott Resolution life and annuity separate accounts [3]	25		26		76		78
Total Mutual Funds	267		251		786		735
Corporate	15		1		21		2
Total earned premiums and fee income	4,331		3,738		12,866		11,195
Net investment income	444		404		1,323		1,209
Net realized capital gains	38		26		60		105
Other revenues	29		24		73		66
Total revenues	$	4,842	$	4,192	$	14,322	$	12,575

[1] For the three months endedSeptember 30, 2018 and 2017, AARP members accounted for earned premiums of $758 and $801, respectively. For the nine months endedSeptember 30, 2018 and 2017, AARP members accounted for earned premiums of $2.3 billion and $2.4 billion, respectively.

[2] Excludes distribution costs of $48 and $140 for the three and nine months ended September 30,2017, respectively, that were previously netted against fee income and are now presented gross in insurance operating costs and other expenses.

[3] Relates to Talcott Resolution life and annuity business sold in May, 2018 that is still managed by the Company's Mutual Funds segment.

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Fair Value Measurements

9 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

The Company carries certain financial assets and liabilities at estimated fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants. Our fair value framework includes a hierarchy that gives the highest priority to the use of quoted prices in active markets, followed by the use of market observable inputs, followed by the use of unobservable inputs. The fair value hierarchy levels are as follows:

Level 1 Fair values based primarily on unadjusted quoted prices for identical assets or liabilities, in active markets that the Company has the ability to access at the measurement date.

Level 2 Fair values primarily based on observable inputs, other than quoted prices included in Level 1, or based on prices for similar assets and liabilities.

Level 3 Fair values derived when one or more of the significant inputs are unobservable (including assumptions about risk). With little or no observable market, the determination of fair values uses considerable judgment and represents the Company’s best estimate of an amount that could be realized in a market exchange for the asset or liability. Also included are securities that are traded within illiquid markets and/or priced by independent brokers.

The Company will classify the financial asset or liability by level based upon the lowest level input that is significant to the determination of the fair value. In most cases, both observable inputs (e.g., changes in interest rates) and unobservable inputs (e.g., changes in risk assumptions) are used to determine fair values that the Company has classified within Level 3.

Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of September 30, 2018
	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a recurring basis
Fixed maturities, AFS
Asset-backed-securities ("ABS")	$	1,191		$	—	$	1,137		$	54
Collateralized loan obligations ("CLOs")	1,326			—		1,030			296
Commercial mortgage-backed securities ("CMBS")	3,657			—		3,635			22
Corporate	13,492			—		12,941			551
Foreign government/government agencies	952			—		949			3
Municipal	10,602			—		10,593			9
Residential mortgage-backed securities ("RMBS")	3,118			—		2,184			934
U.S. Treasuries	1,828			695		1,133			—
Total fixed maturities	36,166			695		33,602			1,869
Fixed maturities, FVO	24			—		24			—
Equity securities, at fair value	1,035			905		52			78
Derivative assets
Credit derivatives	14			—		14			—
Equity derivatives	1			—		—			1
Foreign exchange derivatives	(1		)	—		(1		)	—
Total derivative assets [1]	14			—		13			1
Short-term investments	3,540			980		2,560			—
Total assets accounted for at fair value on a recurring basis	$	40,779		$	2,580	$	36,251		$	1,948
Liabilities accounted for at fair value on a recurring basis
Derivative liabilities
Foreign exchange derivatives	(10		)	—		(10		)	—
Interest rate derivatives	(51		)	—		(53		)	2
Total derivative liabilities [2]	(61		)	—		(63		)	2
Contingent consideration [3]	(32		)	—		—			(32		)
Total liabilities accounted for at fair value on a recurring basis	$	(93	)	$	—	$	(63	)	$	(30	)

Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of December 31, 2017
	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a recurring basis
Fixed maturities, AFS
Asset-backed-securities ("ABS")	$	1,126		$	—	$	1,107		$	19
Collateralized loan obligations ("CLOs")	1,260			—		1,165			95
Commercial mortgage-backed securities ("CMBS")	3,336			—		3,267			69
Corporate	12,804			—		12,284			520
Foreign government/government agencies	1,110			—		1,108			2
Municipal	12,485			—		12,468			17
Residential mortgage-backed securities ("RMBS")	3,044			—		1,814			1,230
U.S. Treasuries	1,799			333		1,466			—
Total fixed maturities	36,964			333		34,679			1,952
Fixed maturities, FVO	41			—		41			—
Equity securities, AFS	1,012			887		49			76
Derivative assets
Credit derivatives	9			—		9			—
Equity derivatives	1			—		—			1
Foreign exchange derivatives	(1		)	—		(1		)	—
Interest rate derivatives	1			—		1			—
Total derivative assets [1]	10			—		9			1
Short-term investments	2,270			1,098		1,172			—
Total assets accounted for at fair value on a recurring basis	$	40,297		$	2,318	$	35,950		$	2,029
Liabilities accounted for at fair value on a recurring basis
Derivative liabilities
Credit derivatives	(3		)	—		(3		)	—
Foreign exchange derivatives	(13		)	—		(13		)	—
Interest rate derivatives	(84		)	—		(85		)	1
Total derivative liabilities [2]	(100		)	—		(101		)	1
Contingent consideration [3]	(29		)	—		—			(29		)
Total liabilities accounted for at fair value on a recurring basis	$	(129	)	$	—	$	(101	)	$	(28	)

[1] Includes derivative instruments in a net positive fair value position after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law. See footnote 2 to this table for derivative liabilities.

[2] Includes derivative instruments in a net negative fair value position (derivative liability) after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law.

[3] For additional information see the Contingent Consideration section below.

Fixed Maturities, Equity Securities, Short-term Investments, and Derivatives

Valuation Techniques

The Company generally determines fair values using valuation techniques that use prices, rates, and other relevant information evident from market transactions involving identical or similar instruments. Valuation techniques also include, where appropriate, estimates of future cash flows that are converted into a single discounted amount using current market expectations. The Company uses a "waterfall" approach comprised of the following pricing sources and techniques, which are listed in priority order:

• Quoted prices, unadjusted, for identical assets or liabilities in active markets, which are classified as Level 1.

• Prices from third-party pricing services, which primarily utilize a combination of techniques. These services utilize recently reported trades of identical, similar, or benchmark securities making adjustments for market observable inputs available through the reporting date. If there are no recently reported trades, they may use a discounted cash flow technique to develop a price using expected cash flows based upon the anticipated future performance of the underlying collateral discounted at an estimated market rate. Both techniques develop prices that consider the time value of future cash flows and provide a margin for risk, including liquidity and credit risk. Most prices provided by third-party pricing services are classified as Level 2 because the inputs used in pricing the securities are observable. However, some securities that are less liquid or trade less actively are classified as Level 3. Additionally, certain long-dated securities, such as municipal securities and bank loans, include benchmark interest rate or credit spread assumptions that are not observable in the marketplace and are thus classified as Level 3.

• Internal matrix pricing, which is a valuation process internally developed for private placement securities for which the Company is unable to obtain a price from a third-party pricing service. Internal pricing matrices determine credit spreads that, when combined with risk-free rates, are applied to contractual cash flows to develop a price. The Company develops credit spreads using market based data for public securities adjusted for credit spread differentials between public and private securities, which are obtained from a survey of multiple private placement brokers. The market-based reference credit spread considers the issuer’s financial strength and term to maturity, using an independent public security index and trade information, while the credit spread differential considers the non-public nature of the security. Securities priced using internal matrix pricing are classified as Level 2 because the inputs are observable or can be corroborated with observable data.

• Independent broker quotes, which are typically non-binding, use inputs that can be difficult to corroborate with observable market based data. Brokers may use present value techniques using assumptions specific to the security types, or they may use recent transactions of similar securities. Due to the lack of transparency in the process that brokers use to develop prices, valuations that are based on independent broker quotes are classified as Level 3.

The fair value of derivative instruments is determined primarily using a discounted cash flow model or option model technique and incorporate counterparty credit risk. In some cases, quoted market prices for exchange-traded and OTC-cleared derivatives may be used and in other cases independent broker quotes may be used. The pricing valuation models primarily use inputs that are observable in the market or can be corroborated by observable market data. The valuation of certain derivatives may include significant inputs that are unobservable, such as volatility levels, and reflect the Company’s view of what other market participants would use when pricing such instruments.

Valuation Controls

The fair value process for investments is monitored by the Valuation Committee, which is a cross-functional group of senior management within the Company that meets at least quarterly. The purpose of the committee is to oversee the pricing policy and procedures, as well as to approve changes to valuation methodologies and pricing sources. Controls and procedures used to assess third-party pricing services are reviewed by the Valuation Committee, including the results of annual due-diligence reviews.

There are also two working groups under the Valuation Committee: a Securities Fair Value Working Group (“Securities Working Group”) and a Derivatives Fair Value Working Group ("Derivatives Working Group"). The working groups, which include various investment, operations, accounting and risk management professionals, meet monthly to review market data trends, pricing and trading statistics and results, and any proposed pricing methodology changes.

The Securities Working Group reviews prices received from third parties to ensure that the prices represent a reasonable estimate of the fair value. The group considers trading volume, new issuance activity, market trends, new regulatory rulings and other factors to determine whether the market activity is significantly different than normal activity in an active market. A dedicated pricing unit follows up with trading and investment sector professionals and challenges prices of third-party pricing services when the estimated assumptions used differ from what the unit believes a market participant would use. If the available evidence indicates that pricing from third-party pricing services or broker quotes is based upon transactions that are stale or not from trades made in an orderly market, the Company places little, if any, weight on the third party service’s transaction price and will estimate fair value using an internal process, such as a pricing matrix.

The Derivatives Working Group reviews the inputs, assumptions and methodologies used to ensure that the prices represent a reasonable estimate of the fair value. A dedicated pricing team works directly with investment sector professionals to investigate the impacts of changes in the market environment on prices or valuations of derivatives. New models and any changes to current models are required to have detailed documentation and are validated to a second source. The model validation documentation and results of validation are presented to the Valuation Committee for approval.

The Company conducts other monitoring controls around securities and derivatives pricing including, but not limited to, the following:

• Review of daily price changes over specific thresholds and new trade comparison to third-party pricing services.

• Daily comparison of OTC derivative market valuations to counterparty valuations.

• Review of weekly price changes compared to published bond prices of a corporate bond index.

• Monthly reviews of price changes over thresholds, stale prices, missing prices, and zero prices.

• Monthly validation of prices to a second source for securities in most sectors and for certain derivatives.

In addition, the Company’s enterprise-wide Operational Risk Management function, led by the Chief Risk Officer, is responsible for model risk management and provides an independent review of the suitability and reliability of model inputs, as well as an analysis of significant changes to current models.

Valuation Inputs

Quoted prices for identical assets in active markets are considered Level 1 and consist of on-the-run U.S. Treasuries, money market funds, exchange-traded equity securities, open-ended mutual funds, short-term investments, and exchange traded futures and option contracts.

Valuation Inputs Used in Levels 2 and 3 Measurements for Securities and Derivatives
Level 2 Primary Observable Inputs		Level 3 Primary Unobservable Inputs
Fixed Maturity Investments
Structured securities (includes ABS, CDOs, CMBS and RMBS)
	• Benchmark yields and spreads • Monthly payment information • Collateral performance, which varies by vintage year and includes delinquency rates, loss severity rates and refinancing assumptions • Credit default swap indices Other inputs for ABS and RMBS: • Estimate of future principal prepayments, derived from the characteristics of the underlying structure • Prepayment speeds previously experienced at the interest rate levels projected for the collateral		• Independent broker quotes • Credit spreads beyond observable curve • Interest rates beyond observable curve Other inputs for less liquid securities or those that trade less actively, including subprime RMBS: • Estimated cash flows • Credit spreads, which include illiquidity premium • Constant prepayment rates • Constant default rates • Loss severity
Corporates
	• Benchmark yields and spreads • Reported trades, bids, offers of the same or similar securities • Issuer spreads and credit default swap curves Other inputs for investment grade privately placed securities that utilize internal matrix pricing: • Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature		• Independent broker quotes • Credit spreads beyond observable curve • Interest rates beyond observable curve Other inputs for below investment grade privately placed securities: • Independent broker quotes • Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature
U.S Treasuries, Municipals, and Foreign government/government agencies
	• Benchmark yields and spreads • Issuer credit default swap curves • Political events in emerging market economies • Municipal Securities Rulemaking Board reported trades and material event notices • Issuer financial statements		• Credit spreads beyond observable curve • Interest rates beyond observable curve
Equity Securities
	• Quoted prices in markets that are not active		• For privately traded equity securities, internal discounted cash flow models utilizing earnings multiples or other cash flow assumptions that are not observable
Short Term Investments
	• Benchmark yields and spreads • Reported trades, bids, offers • Issuer spreads and credit default swap curves • Material event notices and new issue money market rates		Not applicable
Derivatives
Credit derivatives
	• Swap yield curve • Credit default swap curves		Not applicable
Equity derivatives
	• Equity index levels • Swap yield curve		• Independent broker quotes • Equity volatility
Foreign exchange derivatives
	• Swap yield curve • Currency spot and forward rates • Cross currency basis curves		Not applicable
Interest rate derivatives
	• Swap yield curve		• Independent broker quotes • Interest rate volatility

Significant Unobservable Inputs for Level 3 - Securities
Assets accounted for at fair value on a recurring basis	Fair Value		Predominant Valuation Technique	Significant Unobservable Input	Minimum	Maximum	Weighted Average [1]	Impact of Increase in Input on Fair Value [2]
As of September 30, 2018
CMBS [3]	$	12	Discounted cash flows	Spread (encompasses prepayment, default risk and loss severity)	9 bps	1,040 bps	177 bps	Decrease
Corporate [4]	$	289	Discounted cash flows	Spread	100 bps	761 bps	201 bps	Decrease
Municipal	$	9	Discounted cash flows	Spread	160 bps	160 bps	160 bps	Decrease
RMBS [3]	$	913	Discounted cash flows	Spread	7 bps	288 bps	67 bps	Decrease
				Constant prepayment rate	1%	15%	6%	Decrease [5]
				Constant default rate	1%	8%	3%	Decrease
				Loss severity	—%	100%	60%	Decrease
As of December 31, 2017
CMBS [3]	$	56	Discounted cash flows	Spread (encompasses prepayment, default risk and loss severity)	9 bps	1,040 bps	400 bps	Decrease
Corporate [4]	$	251	Discounted cash flows	Spread	103 bps	1,000 bps	242 bps	Decrease
Municipal	$	17	Discounted cash flows	Spread	192 bps	250 bps	219 bps	Decrease
RMBS [3]	$	1,215	Discounted cash flows	Spread	24 bps	351 bps	74 bps	Decrease
				Constant prepayment rate	1%	25%	6%	Decrease [5]
				Constant default rate	—%	9%	4%	Decrease
				Loss severity	—%	100%	66%	Decrease

[1] The weighted average is determined based on the fair value of the securities.

[2] Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table.

[3] Excludes securities for which the Company bases fair value on broker quotations.

[4] Excludes securities for which the Company bases fair value on broker quotations; however, included are broker priced lower-rated private placement securities for which the Company receives spread and yield information to corroborate the fair value.

[5] Decrease for above market rate coupons and increase for below market rate coupons.

Significant Unobservable Inputs for Level 3 - Derivatives
	Fair Value		Predominant Valuation  Technique	Significant Unobservable Input	Minimum		Maximum		Impact of  Increase in Input on  Fair Value [1]
As of September 30, 2018
Interest rate swaptions [2]	$	2	Option model	Interest rate volatility	3	%	3	%	Increase
Equity Options	1		Option model	Equity volatility	19	%	26	%	Increase
As of December 31, 2017
Interest rate swaptions [2]	$	1	Option model	Interest rate volatility	2	%	2	%	Increase
Equity options	$	1	Option model	Equity volatility	18	%	22	%	Increase

[1] Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. Changes are based on long positions, unless otherwise noted. Changes in fair value will be inversely impacted for short positions.

[2] The swaptions presented are purchased options that have the right to enter into a pay-fixed swap.

The tables above excludes ABS and certain corporate securities for which fair values are predominately based on independent broker quotes. While the Company does not have access to the significant unobservable inputs that independent brokers may use in their pricing process, the Company believes brokers likely use inputs similar to those used by the Company and third-party pricing services to price similar instruments. As such, in their pricing models, brokers likely use estimated loss severity rates, prepayment rates, constant default rates and credit spreads. Therefore, similar to non-broker priced securities, increases in these inputs would generally cause fair values to decrease. As ofSeptember 30, 2018, no significant adjustments were made by the Company to broker prices received.

Transfers between Levels

Transfers of securities among the levels occur at the beginning of the reporting period. The amount of transfers from Level 1 to Level 2 was $379 and $1.3 billion for three and nine months endedSeptember 30, 2018, respectively, and $300 and $1.1 billion for the three and nine months endedSeptember 30, 2017, respectively, which represented previously on-the-run U.S. Treasury securities that are now off-the-run. Transfers from Level 2 to Level 1 for both the three and nine months endedSeptember 30, 2018, were immaterial and there were no transfers from Level 2 to Level 1 for the same period in 2017. See the fair value rollforward tables for the three and nine months endedSeptember 30, 2018 and 2017, for the transfers into and out of Level 3.

Contingent Consideration

The acquisition of Lattice Strategies LLC ("Lattice") in 2016 requires the Company to make payments to former owners of Lattice of up to $60 contingent upon growth in exchange-traded products ("ETP") assets under management ("AUM") over a four-year period beginning on the date of acquisition. The contingent consideration is measured at fair value on a quarterly basis by projecting future eligible ETP AUM over the contingency period to estimate the amount of expected payout. The future expected payout is discounted back to the valuation date using a risk-adjusted discount rate of 16.7%. The risk-adjusted discount rate is an internally generated and significant unobservable input to fair value.

The contingency period for ETP AUM growth ends in June, 2020 and management will adjust the fair value of the contingent consideration if and when it revises its projection of ETP AUM for the acquired business. Before discounting to fair value, the Company has accrued a contingent commission payable of $32 assuming ETP AUM for the acquired business grows to approximately $4 billion over the contingency period. The Company will evaluate the projected AUM growth again in the fourth quarter of 2018.

Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs

The Company uses derivative instruments to manage the risk associated with certain assets and liabilities. However, the derivative instrument may not be classified with the same fair value hierarchy level as the associated asset or liability. Therefore, the realized and unrealized gains and losses on derivatives reported in the Level 3 rollforward may be offset by realized and unrealized gains and losses of the associated assets and liabilities in other line items of the financial statements.

Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Three Months Ended September 30, 2018
					Total realized/unrealized gains (losses)
		Fair value as of June 30, 2018			Included in net income [1]			Included in OCI [2]			Purchases		Settlements			Sales			Transfers into Level 3 [3]		Transfers out of Level 3 [3]			Fair value as of September 30, 2018
Assets
Fixed Maturities, AFS
	ABS	$	57		$	—		$	—		$	39	$	(2	)	$	—		$	9	$	(49	)	$	54
	CLOs	159			—			—			211		—			—			—		(74		)	296
	CMBS	28			(1		)	1			—		(1		)	—			—		(5		)	22
	Corporate	559			—			(2		)	12		(2		)	(12		)	—		(4		)	551
	Foreign Govt./Govt. Agencies	3			—			—			—		—			—			—		—			3
	Municipal	9			—			—			—		—			—			—		—			9
	RMBS	1,137			—			(3		)	—		(77		)	(26		)	—		(97		)	934
Total Fixed Maturities, AFS		1,952			(1		)	(4		)	262		(82		)	(38		)	9		(229		)	1,869
Equity Securities, at fair value		66			—			—			12		—			—			—		—			78
Derivatives, net [4]
	Equity	1			—			—			—		—			—			—		—			1
	Interest rate	2			—			—			—		—			—			—		—			2
Total Derivatives, net [4]		3			—			—			—		—			—			—		—			3
Total Assets		$	2,021		$	(1	)	$	(4	)	$	274	$	(82	)	$	(38	)	$	9	$	(229	)	$	1,950
Liabilities
Contingent Consideration [5]		(31		)	(1		)	—			—		—			—			—		—			(32		)
Total Liabilities		$	(31	)	$	(1	)	$	—		$	—	$	—		$	—		$	—	$	—		$	(32	)

Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Nine Months Ended September 30, 2018
					Total realized/unrealized gains (losses)
		Fair value as of January 1, 2018			Included in net income [1]			Included in OCI [2]			Purchases		Settlements			Sales			Transfers into Level 3 [3]		Transfers out of Level 3 [3]			Fair value as of September 30, 2018
Assets
Fixed Maturities, AFS
	ABS	$	19		$	—		$	—		$	89	$	(5	)	$	—		$	12	$	(61	)	$	54
	CLOs	95			—			—			309		—			(4		)	—		(104		)	296
	CMBS	69			(1		)	—			25		(4		)	(8		)	—		(59		)	22
	Corporate	520			1			(10		)	143		(34		)	(43		)	15		(41		)	551
	Foreign Govt./Govt. Agencies	2			—			—			1		—			—			—		—			3
	Municipal	17			—			(1		)	—		—			—			—		(7		)	9
	RMBS	1,230			—			(10		)	170		(251		)	(27		)	—		(178		)	934
Total Fixed Maturities, AFS		1,952			—			(21		)	737		(294		)	(82		)	27		(450		)	1,869
Equity Securities, at fair value		76			28			1			13		—			(40		)	—		—			78
Derivatives, net [4]
	Equity	1			1			—			1		—			(2		)	—		—			1
	Interest rate	1			1			—			—		—			—			—		—			2
Total Derivatives, net [4]		2			2			—			1		—			(2		)	—		—			3
Total Assets		$	2,030		$	30		$	(20	)	$	751	$	(294	)	$	(124	)	$	27	$	(450	)	$	1,950
Liabilities
Contingent Consideration [5]		(29		)	(3		)	—			—		—			—			—		—			(32		)
Total Liabilities		$	(29	)	$	(3	)	$	—		$	—	$	—		$	—		$	—	$	—		$	(32	)

Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Three Months Ended September 30, 2017
					Total realized/unrealized gains (losses)
		Fair value as of June 30, 2017			Included in net income [1]			Included in OCI [2]			Purchases		Settlements			Sales			Transfers into Level 3 [3]		Transfers out of Level 3 [3]			Fair value as of September 30, 2017
Assets
Fixed Maturities, AFS
	ABS	$	63		$	—		$	—		$	—	$	(3	)	$	(6	)	$	4	$	(32	)	$	26
	CLOs	203			—			—			9		—			—			—		(116		)	96
	CMBS	65			(1		)	—			—		(3		)	—			—		—			61
	Corporate	528			—			5			36		(1		)	(24		)	19		(30		)	533
	Foreign Govt./Govt. Agencies	22			—			1			7		—			—			—		(5		)	25
	Municipal	16			—			—			—		—			—			—		—			16
	RMBS	1,272			—			17			39		(72		)	—			—		(1		)	1,255
Total Fixed Maturities, AFS		2,169			(1		)	23			91		(79		)	(30		)	23		(184		)	2,012
Equity Securities, AFS		55			—			(2		)	20		—			—			—		—			73
Derivatives, net [4]
	Equity	2			—			—			—		—			—			—		—			2
	Interest rate	3			(1		)	—			—		—			—			—		—			2
Total Derivatives, net [4]		5			(1		)	—			—		—			—			—		—			4
Total Assets		$	2,229		$	(2	)	$	21		$	111	$	(79	)	$	(30	)	$	23	$	(184	)	$	2,089
Liabilities
Contingent Consideration [5]		(27		)	(1		)	—			—		—			—			—		—			(28		)
Total Liabilities		$	(27	)	$	(1	)	$	—		$	—	$	—		$	—		$	—	$	—		$	(28	)

Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Nine Months Ended September 30, 2017
					Total realized/unrealized gains (losses)
		Fair value as of January 1, 2017			Included in net income [1]			Included in OCI [2]			Purchases		Settlements			Sales			Transfers into Level 3 [3]		Transfers out of Level 3 [3]			Fair value as of September 30, 2017
Assets
Fixed Maturities, AFS
	ABS	$	45		$	—		$	—		$	56	$	(6	)	$	(6	)	$	27	$	(90	)	$	26
	CLOs	154			—			—			195		(101		)	—			—		(152		)	96
	CMBS	59			(2		)	—			42		(7		)	—			—		(31		)	61
	Corporate	514			1			16			169		(42		)	(141		)	54		(38		)	533
	Foreign Govt./Govt. Agencies	47			—			3			12		—			(2		)	—		(35		)	25
	Municipal	46			4			1			—		—			(35		)	—		—			16
	RMBS	1,261			—			39			156		(193		)	(7		)	—		(1		)	1,255
Total Fixed Maturities, AFS		2,126			3			59			630		(349		)	(191		)	81		(347		)	2,012
Fixed Maturities, FVO		11			—			—			4		(2		)	(13		)	—		—			—
Equity Securities, AFS		55			—			(4		)	22		—			—			—		—			73
Derivatives, net [4]
	Equity	—			(3		)	—			5		—			—			—		—			2
	Interest rate	9			(7		)	—			—		—			—			—		—			2
	Other contracts	1			(1		)	—			—		—			—			—		—			—
Total Derivatives, net [4]		10			(11		)	—			5		—			—			—		—			4
Total Assets		$	2,202		$	(8	)	$	55		$	661	$	(351	)	$	(204	)	$	81	$	(347	)	$	2,089
Liabilities
Contingent Consideration [5]		(25		)	(3		)	—			—		—			—			—		—			(28		)
Total Liabilities		$	(25	)	$	(3	)	$	—		$	—	$	—		$	—		$	—	$	—		$	(28	)

[1] Amounts in these columns are generally reported in net realized capital gains (losses). All amounts are before income taxes.

[2] All amounts are before income taxes.

[3] Transfers in and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs.

[4] Derivative instruments are reported in this table on a net basis for asset (liability) positions and reported in the Condensed Consolidated Balance Sheets in other investments and other liabilities.

[5] For additional information, see Note 2 - Business Acquisitions of Notes to Consolidated Financial Statements included in the Company's 2017 form 10-K Annual Report for discussion of the contingent consideration in connection with the acquisition of Lattice. Includes both market and non-market impacts in deriving realized and unrealized gains (losses).

Changes in Unrealized Gains (Losses) Included in Net Income for Financial Instruments Classified as Level 3 Still Held at End of Period
		Three months ended September 30,						Nine months ended September 30,
		2018 [1] [2]			2017 [1] [2]			2018 [1] [2]			2017 [1] [2]
Assets
Fixed Maturities, AFS
	CMBS	$	—		$	—		$	—		$	(1	)
Total Fixed Maturities, AFS		—			—			—			(1		)
Derivatives, net
	Equity	(1		)	—			(1		)	(2		)
	Interest rate	—			(1		)	—			(6		)
Total Derivatives, net		(1		)	(1		)	(1		)	(8		)
Total Assets		$	(1	)	$	(1	)	$	(1	)	$	(9	)
Liabilities
Contingent Consideration [3]		(1		)	(1		)	(3		)	(3		)
Total Liabilities		$	(1	)	$	(1	)	$	(3	)	$	(3	)

[1] All amounts in these rows are reported in net realized capital gains (losses). All amounts are before income taxes.

[2] Amounts presented are for Level 3 only and therefore may not agree to other disclosures included herein.

[3] For additional information, see Note 2 - Business Acquisitions of Notes to Consolidated Financial Statements included in the Company's 2017 form 10-K Annual Report for discussion of the contingent consideration in connection with the acquisition of Lattice.

Fair Value Option

The Company has elected the fair value option for certain securities that contain embedded credit derivatives with underlying credit risk primarily related to residential real estate, and these securities are included within Fixed Maturities, FVO on the Condensed Consolidated Balance Sheets. The Company reports changes in the fair value of these securities in net realized capital gains and losses.

As of September 30, 2018 and December 31, 2017, the fair value of assets and liabilities using the fair value option was $24 and $41, respectively, within the residential real estate sector.

For three and nine months endedSeptember 30, 2018 there were no realized capital gains (losses) related to the fair value of assets using the fair value option. For both the three and nine months endedSeptember 30, 2017 the realized capital gains (losses) related to the fair value of assets using the fair value option were $(1) within the residential real estate and corporate sectors.

Financial Instruments Not Carried at Fair Value

Financial Assets and Liabilities Not Carried at Fair Value
	Fair Value Hierarchy Level	Carrying Amount		Fair Value
September 30, 2018
Assets
Mortgage loans	Level 3	$	3,559	$	3,518
Liabilities
Other policyholder funds and benefits payable	Level 3	$	784	$	785
Senior notes [1]	Level 2	$	3,587	$	3,940
Junior subordinated debentures [1]	Level 2	$	1,089	$	1,142
December 31, 2017
Assets
Mortgage loans	Level 3	$	3,175	$	3,220
Liabilities
Other policyholder funds and benefits payable	Level 3	$	825	$	827
Senior notes [1]	Level 2	$	3,415	$	4,054
Junior subordinated debentures [1]	Level 2	$	1,583	$	1,699

[1] Included in long-term debt in the Consolidated Balance Sheets, except for current maturities, which are included in short-term debt.

XML

Investments

9 Months Ended

Sep. 30, 2018

Investments [Abstract]

Investments

Net Realized Capital Gains
	Three Months Ended September 30,						Nine Months Ended September 30,
(Before tax)	2018			2017			2018			2017
Gross gains on sales	$	26		$	46		$	91		$	184
Gross losses on sales	(41		)	(16		)	(129		)	(84		)
Equity securities [1]	46			—			88			—
Net OTTI losses recognized in earnings	(1		)	(1		)	(1		)	(4		)
Transactional foreign currency revaluation	—			—			1			14
Non-qualifying foreign currency derivatives	1			—			2			(14		)
Other, net [2]	7			(3		)	8			9
Net realized capital gains	$	38		$	26		$	60		$	105

[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 gains (losses) on non-qualifying derivatives, excluding foreign currency derivatives, of $8 and $(1), respectively, for the three months ended September 30, 2018 and 2017. For the nine months ended September 30, 2018 and 2017, the non-qualifying derivatives, excluding foreign currency derivatives, were $6 and $7, respectively.

Net realized capital gains (losses) from investment sales are reported as a component of revenues and are determined on a specific identification basis. Before tax, net gains (losses) on sales and impairments previously reported as unrealized gains or losses in AOCI were $(15) and $(59) for the three and nine months endedSeptember 30, 2018, respectively, and $32 and $102 for the three and nine months endedSeptember 30, 2017, respectively. Proceeds from sales of AFS securities totaled $4.6 billion and $13.1 billion for the three and nine months endedSeptember 30, 2018, respectively, and $2.9 billion and $11.4 billion for the three and nine months endedSeptember 30, 2017, respectively. Effective January 1, 2018, with adoption of new accounting guidance for equity securities, the proceeds from sales of AFS securities no longer includes equity securities.

The net unrealized gain (loss) on equity securities included in net realized capital gains (losses) related to equity securities still held as of September 30, 2018, was $41 and $50 for the three and nine months endedSeptember 30, 2018, respectively. Prior to January 1, 2018, changes in net unrealized gains (losses) on equity securities were included in AOCI.

Recognition and Presentation of Other-Than-Temporary Impairments

The Company will record an other-than-temporary impairment (“OTTI”) for fixed maturities if the Company intends to sell or it is more likely than not that the Company will be required to sell the security before a recovery in value. A corresponding charge is recorded in net realized capital losses equal to the difference between the fair value and amortized cost basis of the security.

The Company will also record an OTTI for those fixed maturities for which the Company does not expect to recover the entire amortized cost basis. For these securities, the excess of the amortized cost basis over its fair value is separated into the portion representing a credit OTTI, which is recorded in net realized capital losses, and the remaining non-credit amount, which is recorded in OCI. The credit OTTI amount is the excess of its amortized cost basis over the Company’s best estimate of discounted expected future cash flows. The non-credit amount is the excess of the best estimate of the discounted expected future cash flows over the fair value. The Company’s best estimate of discounted expected future cash flows becomes the new cost basis and accretes prospectively into net investment income over the estimated remaining life of the security.

Developing the Company’s best estimate of expected future cash flows is a quantitative and qualitative process that incorporates information received from third-party sources along with certain internal assumptions regarding the future performance. The Company's considerations include, but are not limited to, (a) changes in the financial condition of the issuer and the underlying collateral, (b) whether the issuer is current on contractually obligated interest and principal payments, (c) credit ratings, (d) payment structure of the security and (e) the extent to which the fair value has been less than the amortized cost of the security.

For non-structured securities, assumptions include, but are not limited to, economic and industry-specific trends and fundamentals, security-specific developments, industry earnings multiples and the issuer’s ability to restructure and execute asset sales.

For structured securities, assumptions include, but are not limited to, various performance indicators such as historical and projected default and recovery rates, credit ratings, current and projected delinquency rates, loan-to-value ("LTV") ratios, average cumulative collateral loss rates that vary by vintage year, prepayment speeds, and property value declines. These assumptions require the use of significant management judgment and include the probability of issuer default and estimates regarding timing and amount of expected recoveries which may include estimating the underlying collateral value.

Prior to January 1, 2018, the Company recorded an OTTI for certain equity securities with debt-like characteristics if the Company intended to sell or it was more likely than not that the Company was required to sell the security before a recovery in value as well as for those equity securities for which the Company did not expect to recover the entire amortized cost basis. The Company also recorded an OTTI for equity securities where the decline in the fair value was deemed to be other-than-temporary. For further discussion of these policies, see Recognition and Presentation of Other-Than-Temporary Impairments within Note 6 - Investments of Notes to Consolidated Financial Statements included in the Company’s 2017 Form 10-K Annual Report.

Impairments in Earnings by Type
	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Credit impairments	$	1	$	—	$	1	$	2
Intent-to-sell impairments	—		—		—		—
Impairments on equity securities	—		1		—		2
Total impairments	$	1	$	1	$	1	$	4

Cumulative Credit Impairments
	Three Months Ended September 30,						Nine Months Ended September 30,
(Before tax)	2018			2017			2018			2017
Balance as of beginning of period	$	(20	)	$	(94	)	$	(25	)	$	(110	)
Additions for credit impairments recognized on [1]:
Securities not previously impaired	—			—			—			—
Securities previously impaired	(1		)	—			(1		)	(2		)
Reductions for credit impairments previously recognized on:
Securities that matured or were sold during the period	1			—			6			8
Securities due to an increase in expected cash flows	—			—			—			10
Balance as of end of period	$	(20	)	$	(94	)	$	(20	)	$	(94	)

[1] These additions are included in the net OTTI losses recognized in earnings in the Condensed Consolidated Statements of Operations.

Available-for-Sale Securities

AFS Securities by Type
	September 30, 2018												December 31, 2017
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Non-Credit OTTI [1]			Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Non-Credit OTTI [1]
ABS	$	1,191	$	3	$	(3	)	$	1,191	$	—		$	1,119	$	9	$	(2	)	$	1,126	$	—
CLOs	1,328		1		(3		)	1,326		—			1,257		3		—			1,260		—
CMBS	3,718		25		(86		)	3,657		(5		)	3,304		58		(26		)	3,336		(5		)
Corporate	13,640		176		(324		)	13,492		—			12,370		490		(56		)	12,804		—
Foreign govt./govt. agencies	961		11		(20		)	952		—			1,071		43		(4		)	1,110		—
Municipal	10,276		402		(76		)	10,602		—			11,743		754		(12		)	12,485		—
RMBS	3,126		44		(52		)	3,118		—			2,985		63		(4		)	3,044		—
U.S. Treasuries	1,854		17		(43		)	1,828		—			1,763		46		(10		)	1,799		—
Total fixed maturities, AFS	36,094		679		(607		)	36,166		(5		)	35,612		1,466		(114		)	36,964		(5		)
Equity securities, AFS [2]													907		121		(16		)	1,012		—
Total AFS securities	$	36,094	$	679	$	(607	)	$	36,166	$	(5	)	$	36,519	$	1,587	$	(130	)	$	37,976	$	(5	)

[1] Represents the amount of cumulative non-credit OTTI losses recognized in OCI on securities that also had credit impairments. These losses are included in gross unrealized losses in AOCI as of September 30, 2018 and December 31, 2017.

[2] Effective January 1, 2018, with the adoption of new accounting standards for financial instruments, equity securities, AFS were reclassified to equity securities at fair value and are excluded from the table above as of September 30, 2018.

Fixed maturities, AFS, by Contractual Maturity Year
	September 30, 2018				December 31, 2017
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
One year or less	$	1,033	$	1,037	$	1,507	$	1,513
Over one year through five years	6,233		6,242		5,007		5,119
Over five years through ten years	6,543		6,469		6,505		6,700
Over ten years	12,922		13,126		13,928		14,866
Subtotal	26,731		26,874		26,947		28,198
Mortgage-backed and asset-backed securities	9,363		9,292		8,665		8,766
Total fixed maturities, AFS	$	36,094	$	36,166	$	35,612	$	36,964

Estimated maturities may differ from contractual maturities due to security call or prepayment provisions. Due to the potential for variability in payment speeds (i.e. prepayments or extensions), mortgage-backed and asset-backed securities are not categorized by contractual maturity.

Concentration of Credit Risk

The Company aims to maintain a diversified investment portfolio including issuer, sector and geographic stratification, where applicable, and has established certain exposure limits, diversification standards and review procedures to mitigate credit risk. The Company had no investment exposure to any credit concentration risk of a single issuer greater than 10% of the Company's stockholders' equity, other than the U.S. government and certain U.S. government agencies as of September 30, 2018 or December 31, 2017.

Unrealized Losses on AFS Securities

Unrealized Loss Aging for AFS Securities by Type and Length of Time as of September 30, 2018
	Less Than 12 Months							12 Months or More							Total
	Amortized Cost		Fair Value		Unrealized Losses			Amortized Cost		Fair Value		Unrealized Losses			Amortized Cost		Fair Value		Unrealized Losses
ABS	$	668	$	666	$	(2	)	$	74	$	73	$	(1	)	$	742	$	739	$	(3	)
CLOs	929		926		(3		)	10		10		—			939		936		(3		)
CMBS	1,995		1,952		(43		)	740		697		(43		)	2,735		2,649		(86		)
Corporate	7,586		7,364		(222		)	1,412		1,310		(102		)	8,998		8,674		(324		)
Foreign govt./govt. agencies	552		537		(15		)	95		90		(5		)	647		627		(20		)
Municipal	2,206		2,151		(55		)	266		245		(21		)	2,472		2,396		(76		)
RMBS	1,795		1,751		(44		)	184		176		(8		)	1,979		1,927		(52		)
U.S. Treasuries	1,024		1,001		(23		)	402		382		(20		)	1,426		1,383		(43		)
Total fixed maturities, AFS in an unrealized loss position	$	16,755	$	16,348	$	(407	)	$	3,183	$	2,983	$	(200	)	$	19,938	$	19,331	$	(607	)

Unrealized Loss Aging for AFS Securities by Type and Length of Time as of December 31, 2017
	Less Than 12 Months							12 Months or More							Total
	Amortized Cost		Fair Value		Unrealized Losses			Amortized Cost		Fair Value		Unrealized Losses			Amortized Cost		Fair Value		Unrealized Losses
ABS	$	461	$	460	$	(1	)	$	30	$	29	$	(1	)	$	491	$	489	$	(2	)
CLOs	359		359		—			1		1		—			360		360		—
CMBS	1,178		1,167		(11		)	243		228		(15		)	1,421		1,395		(26		)
Corporate	2,322		2,302		(20		)	1,064		1,028		(36		)	3,386		3,330		(56		)
Foreign govt./govt. agencies	244		242		(2		)	51		49		(2		)	295		291		(4		)
Municipal	511		507		(4		)	236		228		(8		)	747		735		(12		)
RMBS	889		887		(2		)	137		135		(2		)	1,026		1,022		(4		)
U.S. Treasuries	658		652		(6		)	254		250		(4		)	912		902		(10		)
Total fixed maturities, AFS	6,622		6,576		(46		)	2,016		1,948		(68		)	8,638		8,524		(114		)
Equity securities, AFS [1]	176		163		(13		)	24		21		(3		)	200		184		(16		)
Total securities in an unrealized loss position	$	6,798	$	6,739	$	(59	)	$	2,040	$	1,969	$	(71	)	$	8,838	$	8,708	$	(130	)

[1]Effective January 1, 2018, with the adoption of new accounting guidance for financial instruments, equity securities, AFS were reclassified to equity securities at fair value and are excluded from the table above as of September 30, 2018.

As of September 30, 2018, AFS securities in an unrealized loss position consisted of 2,926 securities, primarily in the corporate and commercial real estate sectors, which were depressed primarily due to an increase in interest rates and/or widening of credit spreads since the securities were purchased. As of September 30, 2018, 99% of these securities were depressed less than 20% of cost or amortized cost. The increase in unrealized losses during the nine months endedSeptember 30, 2018 was primarily attributable to higher interest rates and wider credit spreads.

Most of the securities depressed for twelve months or more relate to corporate securities, structured securities with exposure to commercial real estate, and municipal bonds. Corporate securities and commercial real estate securities were primarily depressed because current market spreads are wider and interest rates are higher than at the securities' respective purchase dates. Certain municipal bonds were depressed because the securities have long-dated maturities and interest rates have increased since their purchase. The Company neither has an intention to sell nor does it expect to be required to sell the securities outlined in the preceding discussion.

Mortgage Loans

Mortgage Loan Valuation Allowances

Mortgage loans are considered to be impaired when management estimates that, based upon current information and events, it is probable that the Company will be unable to collect amounts due according to the contractual terms of the loan agreement. The Company reviews mortgage loans on a quarterly basis to identify potential credit losses. Among other factors, management reviews current and projected macroeconomic trends, such as unemployment rates and property-specific factors such as rental rates, occupancy levels, LTV ratios and debt service coverage ratios (“DSCR”). In addition, the Company considers historical, current and projected delinquency rates and property values. Estimates of collectibility require the use of significant management judgment and include the probability and timing of borrower default and loss severity estimates. In addition, cash flow projections may change based upon new information about the borrower's ability to pay and/or the value of underlying collateral such as changes in projected property value estimates.

For mortgage loans that are deemed impaired, a valuation allowance is established for the difference between the carrying amount and estimated fair value. The mortgage loan's estimated fair value is most frequently the Company's share of the fair value of the collateral but may also be the Company’s share of either (a) the present value of the expected future cash flows discounted at the loan’s effective interest rate or (b) the loan’s observable market price. A valuation allowance may be recorded for an individual loan or for a group of loans that have an LTV ratio of 90% or greater, a low DSCR or have other lower credit quality characteristics. Changes in valuation allowances are recorded in net realized capital gains and losses. Interest income on impaired loans is accrued to the extent it is deemed collectible and the borrowers continue to make payments under the original or restructured loan terms. The Company stops accruing interest income on loans when it is probable that the Company will not receive interest and principal payments according to the contractual terms of the loan agreement. The Company resumes accruing interest income when it determines that sufficient collateral exists to satisfy the full amount of the loan principal and interest payments and when it is probable cash will be received in the foreseeable future. Interest income on defaulted loans is recognized when received.

As of September 30, 2018 and December 31, 2017, mortgage loans had an amortized cost and carrying value of $3.6 billion and $3.2 billion, respectively, with a valuation allowance of $1 for both periods.

As of both September 30, 2018 and December 31, 2017, the carrying value of mortgage loans that had a valuation allowance was $24. There were no mortgage loans held-for-sale as of September 30, 2018 or December 31, 2017. As of September 30, 2018, the Company had no mortgage loans that have had extensions or restructurings other than what is allowable under the original terms of the contract.

The following table presents the activity within the Company’s valuation allowance for mortgage loans. These loans have been evaluated both individually and collectively for impairment. Loans evaluated collectively for impairment are immaterial.

Valuation Allowance Activity
	2018			2017
Balance, as of January 1	$	(1	)	$	—
Reversals/(Additions)	—			(1		)
Deductions	—			1
Balance, as of September 30	$	(1	)	$	—

The weighted-average LTV ratio of the Company’s mortgage loan portfolio was 53% as of September 30, 2018, while the weighted-average LTV ratio at origination of these loans was 61%. LTV ratios compare the loan amount to the value of the underlying property collateralizing the loan. The loan collateral values are updated no less than annually through reviews of the underlying properties. Factors considered in estimating property values include, among other things, actual and expected property cash flows, geographic market data and the ratio of the property's net operating income to its value. DSCR compares a property’s net operating income to the borrower’s principal and interest payments. As of September 30, 2018 and December 31, 2017, the Company held no delinquent mortgage loans past due by 90 days or more.

Mortgage Loans Credit Quality
	September 30, 2018			December 31, 2017
Loan-to-value	Carrying Value		Avg. Debt-Service Coverage Ratio	Carrying Value		Avg. Debt-Service Coverage Ratio
Greater than 80%	$	—	—	$	18	1.27x
65% - 80%	406		1.68x	265		1.95x
Less than 65%	3,153		2.60x	2,892		2.76x
Total mortgage loans	$	3,559	2.50x	$	3,175	2.69x

Mortgage Loans by Region
	September 30, 2018				December 31, 2017
	Carrying Value		Percent of Total		Carrying Value		Percent of Total
East North Central	$	250	7.0	%	$	251	7.9	%
Middle Atlantic	271		7.6	%	272		8.6	%
Mountain	31		0.9	%	31		1.0	%
New England	290		8.2	%	293		9.2	%
Pacific	870		24.4	%	760		23.9	%
South Atlantic	713		20.0	%	710		22.4	%
West North Central	148		4.2	%	149		4.7	%
West South Central	421		11.8	%	278		8.7	%
Other [1]	565		15.9	%	431		13.6	%
Total mortgage loans	$	3,559	100.0	%	$	3,175	100.0	%

[1] Primarily represents loans collateralized by multiple properties in various regions.

Mortgage Loans by Property Type
	September 30, 2018				December 31, 2017
	Carrying Value		Percent of Total		Carrying Value		Percent of Total
Commercial
Industrial	$	1,018	28.6	%	$	817	25.7	%
Multifamily	1,083		30.4	%	1,006		31.7	%
Office	760		21.4	%	751		23.7	%
Retail	373		10.5	%	367		11.5	%
Single Family	82		2.3	%	—		—	%
Other	243		6.8	%	234		7.4	%
Total mortgage loans	$	3,559	100.0	%	$	3,175	100.0	%

Mortgage Servicing

The Company originates, sells and services commercial mortgage loans on behalf of third parties and recognizes servicing fee income over the period that services are performed. As of September 30, 2018, under this program, the Company serviced commercial mortgage loans with a total outstanding principal of $5.9 billion, of which $3.6 billion was serviced on behalf of third parties and $2.3 billion was retained and reported in total investments on the Company's Condensed Consolidated Balance Sheets . As of December 31, 2017, the Company serviced commercial mortgage loans with a total outstanding principal balance of $1.3 billion, of which $402 was serviced on behalf of third parties, $566 was retained and reported in total investments and $356 was reported in assets held for sale on the Company's Consolidated Balance Sheets. Servicing rights are carried at the lower of cost or fair value and were zero as of September 30, 2018 and December 31, 2017, because servicing fees were market-level fees at origination and remain adequate to compensate the Company for servicing the loans.

Variable Interest Entities

The Company is engaged with various special purpose entities and other entities that are deemed to be VIEs primarily as an investor through normal investment activities but also as an investment manager.

A VIE is an entity that either has investors that lack certain essential characteristics of a controlling financial interest, such as simple majority kick-out rights, or lacks sufficient funds to finance its own activities without financial support provided by other entities. The Company performs ongoing qualitative assessments of its VIEs to determine whether the Company has a controlling financial interest in the VIE and therefore is the primary beneficiary. The Company is deemed to have a controlling financial interest when it has both the ability to direct the activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. Based on the Company’s assessment, if it determines it is the primary beneficiary, the Company consolidates the VIE in the Company’s Condensed Consolidated Financial Statements.

Consolidated VIEs

As of September 30, 2018 and December 31, 2017, the Company did not hold any securities for which it is the primary beneficiary.

Non-Consolidated VIEs

The Company, through normal investment activities, makes passive investments in limited partnerships and other alternative investments. For these non-consolidated VIEs, the Company has determined it is not the primary beneficiary as it has no ability to direct activities that could significantly affect the economic performance of the investments. The Company’s maximum exposure to loss as of September 30, 2018 and December 31, 2017 was limited to the total carrying value of $1.0 billion and $920, respectively, which are included in limited partnerships and other alternative investments in the Company's Condensed Consolidated Balance Sheets. As of September 30, 2018 and December 31, 2017, the Company has outstanding commitments totaling $689 and $787, respectively, whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses. These investments are generally of a passive nature in that the Company does not take an active role in management. For further discussion of these investments, see Equity Method Investments within Note 6 - Investments of Notes to Consolidated Financial Statements included in the Company’s 2017 Form 10-K Annual Report.

In addition, the Company also makes passive investments in structured securities issued by VIEs for which the Company is not the manager. These investments are included in ABS, CDOs, CMBS and RMBS in the Available-for-Sale Securities table and fixed maturities, AFS and FVO, in the Company’s Condensed Consolidated Balance Sheets. The Company has not provided financial or other support with respect to these investments other than its original investment. For these investments, the Company determined it is not the primary beneficiary due to the relative size of the Company’s investment in comparison to the principal amount of the structured securities issued by the VIEs, the level of credit subordination which reduces the Company’s obligation to absorb losses or right to receive benefits and the Company’s inability to direct the activities that most significantly impact the economic performance of the VIEs. The Company’s maximum exposure to loss on these investments is limited to the amount of the Company’s investment.

Securities Lending, Repurchase Agreements and Other Collateral Transactions

The Company enters into securities financing transactions as a way to earn additional income or manage liquidity, primarily through securities lending and repurchase agreements.

Securities Lending

Under a securities lending program, the Company lends certain fixed maturities within the corporate, foreign government/government agencies, and municipal sectors as well as equity securities to qualifying third-party borrowers in return for collateral in the form of cash or securities. For domestic and non-domestic loaned securities, respectively, borrowers provide collateral of 102% and 105% of the fair value of the securities lent at the time of the loan. Borrowers will return the securities to the Company for cash or securities collateral at maturity dates generally of 90 days or less. Security collateral on deposit from counterparties in connection with securities lending transactions may not be sold or re-pledged, except in the event of default by the counterparty, and is not reflected on the Company’s Condensed Consolidated Balance Sheets. Additional collateral is obtained if the fair value of the collateral falls below 100% of the fair value of the loaned securities. The agreements provide the counterparty the right to sell or re-pledge the securities loaned. If cash, rather than securities, is received as collateral, the cash is typically invested in short-term investments or fixed maturities and is reported as an asset on the Company's Condensed Consolidated Balance Sheets. Income associated with securities lending transactions is reported as a component of net investment income in the Company’s Condensed Consolidated Statements of Operations.

Repurchase Agreements

From time to time, the Company enters into repurchase agreements to manage liquidity or to earn incremental income. A repurchase agreement is a transaction in which one party (transferor) agrees to sell securities to another party (transferee) in return for cash (or securities), with a simultaneous agreement to repurchase the same securities at a specified price at a later date. These transactions generally have a contractual maturity of ninety days or less. Repurchase agreements include master netting provisions that provide both counterparties the right to offset claims and apply securities held by them with respect to their obligations in the event of a default. Although the Company has the contractual right to offset claims, the Company's current positions do not meet the specific conditions for net presentation.

Under repurchase agreements, the Company transfers collateral of U.S. government and government agency securities and receives cash. For repurchase agreements, the Company obtains cash in an amount equal to at least 95% of the fair value of the securities transferred. The agreements require additional collateral to be transferred when necessary and provide the counterparty the right to sell or re-pledge the securities transferred. The cash received from the repurchase program is typically invested in short-term investments or fixed maturities and is reported as an asset on the Company's Condensed Consolidated Balance Sheets. The Company accounts for the repurchase agreements as collateralized borrowings. The securities transferred under repurchase agreements are included in fixed maturities, AFS with the obligation to repurchase those securities recorded in other liabilities on the Company's Condensed Consolidated Balance Sheets.

From time to time, the Company enters into reverse repurchase agreements where the Company purchases securities and simultaneously agrees to resell the same or substantially the same securities. The agreements require additional collateral to be transferred to the Company when necessary and the Company has the right to sell or re-pledge the securities received. The Company accounts for reverse repurchase agreements as collateralized financing. The receivable for reverse repurchase agreements is included within short term investments in the Company's Condensed Consolidated Balance Sheets.

Securities Lending and Repurchase Agreements
	September 30, 2018		December 31, 2017
	Fair Value		Fair Value
Securities Lending Transactions:
Gross amount of securities on loan	$	697	$	922
Gross amount of associated liability for collateral received [1]	$	714	$	945
Repurchase agreements:
Gross amount of recognized liabilities for repurchase agreements	$	167	$	174
Gross amount of collateral pledged related to repurchase agreements [2]	$	168	$	176
Gross amount of recognized receivables for reverse repurchase agreements	$	36	$	—

[1] Cash collateral received is reinvested in fixed maturities, AFS and short term investments and is included in the Condensed Consolidated Balance Sheets. Amount includes additional securities collateral received of $2 and $0 million which are excluded from the Company's Condensed Consolidated Balance Sheets as of September 30, 2018 and December 31, 2017, respectively.

[2] Collateral pledged is included within fixed maturities, AFS and short term investments in the Company's Condensed Consolidated Balance Sheets.

Other Collateral Transactions

The Company is required by law to deposit securities with government agencies in certain states in which it conducts business. As of September 30, 2018 and December 31, 2017, the fair value of securities on deposit were $2.5 billion .

As of September 30, 2018 and December 31, 2017, the Company pledged collateral of $46 and $104, respectively, of U.S. government securities and government agency securities or cash primarily related to certain bank loan participations committed to through a limited partnership agreement. These amounts also include collateral related to letters of credit.

For disclosure of collateral in support of derivative transactions, refer to the Derivative Collateral Arrangements section of Note 7 - Derivative Instruments of Notes to Condensed Consolidated Financial Statements.

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Derivative Instruments

9 Months Ended

Sep. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives Instruments

The Company utilizes a variety of OTC, OTC-cleared and exchange traded derivative instruments as a part of its overall risk management strategy as well as to enter into replication transactions. Derivative instruments are used to manage risk associated with interest rate, equity market, credit spread, issuer default, price, and currency exchange rate risk or volatility. Replication transactions are used as an economical means to synthetically replicate the characteristics and performance of assets that are permissible investments under the Company’s investment policies.

Strategies that Qualify for Hedge Accounting

Some of the Company's derivatives satisfy hedge accounting requirements as outlined in Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements, included in The Hartford’s 2017 Form 10-K Annual Report. Typically, these hedging instruments include interest rate swaps and, to a lesser extent, foreign currency swaps where the terms or expected cash flows of the hedged item closely match the terms of the swap. The interest rate swaps are typically used to manage interest rate duration of certain fixed maturity securities. The hedge strategies by hedge accounting designation include:

Cash Flow Hedges

Interest rate swaps are predominantly used to manage portfolio duration and better match cash receipts from assets with cash disbursements required to fund liabilities. These derivatives primarily convert interest receipts on floating-rate fixed maturity securities to fixed rates. The Company has also entered into interest rate swaps to convert the variable interest payments on the 3 month Libor + 2.125% junior subordinated debt to fixed interest payments. For further information, see the Junior Subordinated Debentures section within Note 13 - Debt of Notes to the Consolidated Financial Statements, included in The Hartford's 2017 Form 10-K Annual Report.

Foreign currency swaps are used to convert foreign currency-denominated cash flows related to certain investment receipts to U.S. dollars in order to reduce cash flow fluctuations due to changes in currency rates.

The Company also previously entered into forward starting swap agreements to hedge the interest rate exposure related to the future purchase of fixed-rate securities, primarily to hedge interest rate risk inherent in the assumptions used to price certain group benefits liabilities.

Non-qualifying Strategies

Derivative relationships that do not qualify for hedge accounting (“non-qualifying strategies”) primarily include hedging and replication strategies that utilize credit default swaps. In addition, hedges of interest rate, foreign currency and equity risk of certain fixed maturities and equities do not qualify for hedge accounting. The non-qualifying strategies include:

Credit Contracts

Credit default swaps are used to purchase credit protection on an individual entity or referenced index to economically hedge against default risk and credit-related changes in the value of fixed maturity securities. Credit default swaps are also used to assume credit risk related to an individual entity or referenced index as a part of replication transactions. These contracts require the Company to pay or receive a periodic fee in exchange for compensation from the counterparty should the referenced security issuers experience a credit event, as defined in the contract. The Company also enters into credit default swaps to terminate existing credit default swaps, thereby offsetting the changes in value of the original swap going forward.

Interest Rate Swaps, Swaptions and Futures

The Company uses interest rate swaps, swaptions and futures to manage interest rate duration between assets and liabilities in certain investment portfolios. In addition, the Company enters into interest rate swaps to terminate existing swaps, thereby offsetting the changes in value of the original swap going forward. As of September 30, 2018 and December 31, 2017, the notional amount of interest rate swaps in offsetting relationships was $7.1 billion and $7.3 billion, respectively.

Foreign Currency Swaps and Forwards

The Company enters into foreign currency swaps to convert the foreign currency exposures of certain foreign currency-denominated fixed maturity investments to U.S. dollars. The Company may at times enter into foreign currency forwards to hedge non-U.S. dollar denominated cash and, previously, equity securities. The Company previously entered into foreign currency forwards to hedge currency impacts on changes in equity of the U.K. property and casualty run-off subsidiaries that were sold in May 2017. For further information on the disposition, see Note 2 - Business Acquisitions of Notes to Consolidated Financial Statements, included in The Hartford's 2017 Form 10-K Annual Report.

Equity Index Options

The Company enters into equity index options to hedge the impact of a decline in the equity markets on the investment portfolio. The Company also enters into call options on equity securities to generate additional return.

Derivative Balance Sheet Classification

For reporting purposes, the Company has elected to offset within assets or liabilities based upon the net of the fair value amounts, income accruals, and related cash collateral receivables and payables of OTC derivative instruments executed in a legal entity and with the same counterparty under a master netting agreement, which provides the Company with the legal right of offset. The following fair value amounts do not include income accruals or related cash collateral receivables and payables, which are netted with derivative fair value amounts to determine balance sheet presentation. The Company’s derivative instruments are held for risk management purposes, unless otherwise noted in the following table. The notional amount of derivative contracts represents the basis upon which pay or receive amounts are calculated and is presented in the table to quantify the volume of the Company’s derivative activity. Notional amounts are not necessarily reflective of credit risk.

Derivative Balance Sheet Presentation
	Net Derivatives										Asset Derivatives [1]				Liability Derivatives [1]
	Notional Amount				Fair Value						Fair Value				Fair Value
Hedge Designation/ Derivative Type	Sep. 30, 2018		Dec. 31, 2017		Sep. 30, 2018			Dec. 31, 2017			Sep. 30, 2018		Dec. 31, 2017		Sep. 30, 2018			Dec. 31, 2017
Cash flow hedges
Interest rate swaps	$	2,080	$	2,190	$	—		$	—		$	—	$	1	$	—		$	(1	)
Foreign currency swaps	153		153		(11		)	(13		)	1		—		(12		)	(13		)
Total cash flow hedges	2,233		2,343		(11		)	(13		)	1		1		(12		)	(14		)
Non-qualifying strategies
Interest rate contracts
Interest rate swaps and futures	8,111		7,986		(51		)	(83		)	3		7		(54		)	(90		)
Foreign exchange contracts
Foreign currency swaps and forwards	318		213		—			(1		)	1		—		(1		)	(1		)
Credit contracts
Credit derivatives that purchase credit protection	8		61		—			1			—		2		—			(1		)
Credit derivatives that assume credit risk [2]	923		823		14			3			15		3		(1		)	—
Credit derivatives in offsetting positions	46		1,046		—			2			6		11		(6		)	(9		)
Equity contracts
Equity index swaps and options	125		258		1			1			1		1		—			—
Total non-qualifying strategies	9,531		10,387		(36		)	(77		)	26		24		(62		)	(101		)
Total cash flow hedges and non-qualifying strategies	$	11,764	$	12,730	$	(47	)	$	(90	)	$	27	$	25	$	(74	)	$	(115	)
Balance Sheet Location
Fixed maturities, available-for-sale	$	153	$	153	$	—		$	—		$	—	$	—	$	—		$	—
Other investments	9,377		9,957		14			10			19		16		(5		)	(6		)
Other liabilities	2,234		2,620		(61		)	(100		)	8		9		(69		)	(109		)
Total derivatives	$	11,764	$	12,730	$	(47	)	$	(90	)	$	27	$	25	$	(74	)	$	(115	)

[1] Certain prior year amounts have been restated to conform to the current year presentation for OTC-cleared derivatives.

[2] The derivative instruments related to this strategy are held for other investment purposes.

Offsetting of Derivative Assets/Liabilities

The following tables present the gross fair value amounts, the amounts offset, and net position of derivative instruments eligible for offset in the Company's Condensed Consolidated Balance Sheets. Amounts offset include fair value amounts, income accruals and related cash collateral receivables and payables associated with derivative instruments that are traded under a common master netting agreement, as described in the preceding discussion. Also included in the tables are financial collateral receivables and payables, which are contractually permitted to be offset upon an event of default, although are disallowed for offsetting under U.S. GAAP.

Offsetting Derivative Assets and Liabilities
	(i)			(ii)			(iii) = (i) - (ii)						(iv)				(v) = (iii) - (iv)
							Net Amounts Presented in the Statement of Financial Position							Collateral Disallowed for Offset in the Statement of Financial Position
	Gross Amounts of Recognized Assets (Liabilities) [1]			Gross Amounts Offset in the Statement of Financial Position			Derivative Assets [2] (Liabilities) [3]			Accrued Interest and Cash Collateral (Received) [4] Pledged [3]				Financial Collateral (Received) Pledged [5]			Net Amount
As of September 30, 2018
Other investments	$	27		$	23		$	14		$	(10	)		$	2		$	2
Other liabilities	$	(74	)	$	(5	)	$	(61	)	$	(8	)		$	(61	)	$	(8	)
As of December 31, 2017
Other investments	$	25		$	22		$	10		$	(7	)		$	1		$	2
Other liabilities	$	(115	)	$	(10	)	$	(100	)	$	(5	)		$	(96	)	$	(9	)

[1] Certain prior year amounts have been restated to conform to the current year presentation for OTC-cleared derivatives.

[2] Included in other investments in the Company's Condensed Consolidated Balance Sheets.

[3] Included in other liabilities in the Company's Condensed Consolidated Balance Sheets and is limited to the net derivative payable associated with each counterparty.

[4] Included in other investments in the Company's Condensed Consolidated Balance Sheets and is limited to the net derivative receivable associated with each counterparty.

[5] Excludes collateral associated with exchange-traded derivative instruments.

Cash Flow Hedges

For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of OCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing hedge ineffectiveness are recognized in current period earnings. All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness.

Derivatives in Cash Flow Hedging Relationships
	Gain (Loss) Recognized in OCI on Derivative (Effective Portion)
	Three Months Ended September 30,					Nine Months Ended September 30,
	2018		2017			2018			2017
Interest rate swaps	$	—	$	2		$	(16	)	$	16
Foreign currency swaps	—		(4		)	1			(8		)
Total	$	—	$	(2	)	$	(15	)	$	8
	Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
	Three Months Ended September 30,					Nine Months Ended September 30,
	2018		2017			2018			2017
Interest rate swaps
Net realized capital gains	$	—	$	—		$	1		$	5
Net investment income	7		8			24			27
Total	$	7	$	8		$	25		$	32

During the three and nine months endedSeptember 30, 2018, and September 30, 2017, the Company had no ineffectiveness recognized in income within net realized capital gains (losses).

As of September 30, 2018, the before tax deferred net gains on derivative instruments recorded in AOCI that are expected to be reclassified to earnings during the next twelve months are $24. This expectation is based on the anticipated interest payments on hedged investments in fixed maturity securities that will occur over the next twelve months, at which time the Company will recognize the deferred net gains (losses) as an adjustment to net investment income over the term of the investment cash flows.

During the three and nine months endedSeptember 30, 2018, and September 30, 2017, the Company had no net reclassifications from AOCI to earnings resulting from the discontinuance of cash-flow hedges due to forecasted transactions that were no longer probable of occurring.

Non-Qualifying Strategies

For non-qualifying strategies, including embedded derivatives that are required to be bifurcated from their host contracts and accounted for as derivatives, the gain or loss on the derivative is recognized currently in earnings within net realized capital gains (losses).

Non-Qualifying Strategies Recognized within Net Realized Capital Gains (Losses)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Foreign exchange contracts
Foreign currency swaps and forwards	$	1		$	—		$	2		$	(14	)
Other non-qualifying derivatives
Interest rate contracts
Interest rate swaps, swaptions, and futures	1			(4		)	7			(6		)
Credit contracts
Credit derivatives that purchase credit protection	—			8			—			26
Credit derivatives that assume credit risk	8			(2		)	—			(9		)
Equity contracts
Equity index swaps and options	(1		)	(3		)	(1		)	(3		)
Other
Contingent capital facility put option	—			—			—			(1		)
Total other non-qualifying derivatives	8			(1		)	6			7
Total [1]	$	9		$	(1	)	$	8		$	(7	)

[1] Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 5 - Fair Value Measurements.

Credit Risk Assumed through Credit Derivatives

The Company enters into credit default swaps that assume credit risk of a single entity or referenced index in order to synthetically replicate investment transactions that are permissible under the Company's investment policies. The Company will receive periodic payments based on an agreed upon rate and notional amount and will only make a payment if there is a credit event. A credit event payment will typically be equal to the notional value of the swap contract less the value of the referenced security issuer’s debt obligation after the occurrence of the credit event. A credit event is generally defined as a default on contractually obligated interest or principal payments or bankruptcy of the referenced entity. The credit default swaps in which the Company assumes credit risk primarily reference investment grade single corporate issuers and baskets, which include standard diversified portfolios of corporate and CMBS issuers. The diversified portfolios of corporate issuers are established within sector concentration limits and may be divided into tranches that possess different credit ratings.

Credit Risk Assumed Derivatives by Type
							Underlying Referenced Credit Obligation(s) [1]
	Notional Amount [2]		Fair Value			Weighted Average Years to Maturity	Type	Average Credit Rating	Offsetting Notional Amount [3]		Offsetting Fair Value [3]
As of September 30, 2018
Single name credit default swaps
Investment grade risk exposure	$	170	$	4		5 years	Corporate Credit/ Foreign Gov.	A-	$	—	$	—
Basket credit default swaps [4]
Investment grade risk exposure	743		10			6 years	Corporate Credit	BBB+	—		—
Investment grade risk exposure	12		—			5 years	CMBS Credit	A-	2		—
Below investment grade risk exposure	21		(6		)	Less than 1 year	CMBS Credit	CCC	21		6
Total [5]	$	946	$	8					$	23	$	6
As of December 31, 2017
Single name credit default swaps
Investment grade risk exposure	$	130	$	3		5 years	Corporate Credit/ Foreign Gov.	A-	$	—	$	—
Below investment grade risk exposure	9		—			Less than 1 year	Corporate Credit	B	9		—
Basket credit default swaps [4]
Investment grade risk exposure	1,137		2			3 years	Corporate Credit	BBB+	454		(2		)
Below investment grade risk exposure	27		2			3 years	Corporate Credit	B+	27		—
Investment grade risk exposure	13		(1		)	5 years	CMBS Credit	A	3		—
Below investment grade risk exposure	30		(6		)	Less than 1 year	CMBS Credit	CCC	30		7
Total [5]	$	1,346	$	—					$	523	$	5

[1] The average credit ratings are based on availability and are generally the midpoint of the available ratings among Moody’s, S&P, Fitch and Morningstar. If no rating is available from a rating agency, then an internally developed rating is used.

[2] Notional amount is equal to the maximum potential future loss amount. These derivatives are governed by agreements and applicable law, which include collateral posting requirements. There is no additional specific collateral related to these contracts or recourse provisions included in the contracts to offset losses.

[3] The Company has entered into offsetting credit default swaps to terminate certain existing credit default swaps, thereby offsetting the future changes in value of, or losses paid related to, the original swap.

[4] Comprised of swaps of standard market indices of diversified portfolios of corporate and CMBS issuers referenced through credit default swaps. These swaps are subsequently valued based upon the observable standard market index.

[5] Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 5 - Fair Value Measurements.

Derivative Collateral Arrangements

The Company enters into various collateral arrangements in connection with its derivative instruments, which require both the pledging and accepting of collateral. As of September 30, 2018 and December 31, 2017, the Company pledged cash collateral with a fair value of $1 associated with derivative instruments. The collateral receivable has been recorded in other assets or other liabilities on the Company's Condensed Consolidated Balance Sheets as determined by the Company's election to offset on the balance sheet. As of September 30, 2018 and December 31, 2017, the Company also pledged securities collateral associated with derivative instruments with a fair value of $68 and $101, respectively, which have been included in fixed maturities on the Condensed Consolidated Balance Sheets. In addition, as of September 30, 2018 and December 31, 2017, the Company has also pledged initial margin of securities related to OTC-cleared and exchange traded derivatives with a fair value of $99 and $96, respectively, which are included within fixed maturities on the Company's Condensed Consolidated Balance Sheets. The counterparties generally have the right to sell or re-pledge these securities.

As of September 30, 2018 and December 31, 2017, the Company accepted cash collateral associated with derivative instruments of $13 and $11, respectively, which was invested and recorded in the Company's Condensed Consolidated Balance Sheets in fixed maturities and short-term investments with corresponding amounts recorded in other investments or other liabilities as determined by the Company's election to offset on the balance sheet. The Company also accepted securities collateral as of September 30, 2018 and December 31, 2017, with a fair value of $2, none of which the Company has the ability to sell or repledge. As of September 30, 2018 and December 31, 2017, the Company had no repledged securities and did not sell any securities held as collateral. In addition, as of September 30, 2018 and December 31, 2017, non-cash collateral accepted was held in separate custodial accounts and was not included in the Company’s Consolidated Balance Sheets.

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Other Intangible Assets

9 Months Ended

Sep. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets Disclosure [Text Block]

On February 16, 2018, The Company entered into a renewal rights agreement with Farmers Exchanges of the Farmers Group of Companies to acquire its Foremost-branded small commercial business sold through independent agents. In connection with the renewal rights agreement, the Company recorded a customer relationships intangible asset of $46 which will be amortized over 10 years.

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Reserve for Unpaid Losses and Loss Adjustment Expenses

9 Months Ended

Sep. 30, 2018

Liability for Unpaid Claims and Claims Adjustment Expense, Activity in Liability [Abstract]

Reserve for Unpaid Losses and Loss Adjustment Expenses

Property and Casualty Insurance Products

Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses

	For the nine months ended September 30,
	2018			2017
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	$	23,775		$	22,545
Reinsurance and other recoverables	3,957			3,488
Beginning liabilities for unpaid losses and loss adjustment expenses, net	19,818			19,057
Provision for unpaid losses and loss adjustment expenses
Current accident year	5,151			5,587
Prior accident year development	(139		)	1
Total provision for unpaid losses and loss adjustment expenses	5,012			5,588
Less payments
Current accident year	1,647			1,770
Prior accident years	3,166			3,143
Total payments	4,813			4,913
Ending liabilities for unpaid losses and loss adjustment expenses, net	20,017			19,732
Reinsurance and other recoverables	3,780			3,508
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	23,797		$	23,240

Unfavorable (Favorable) Prior Accident Year Development

	For the nine months ended September 30,
	2018			2017
Workers’ compensation	$	(97	)	$	(29	)
Workers’ compensation discount accretion	30			21
General liability	32			10
Package business	(16		)	(22		)
Commercial property	(10		)	(5		)
Professional liability	(12		)	—
Bond	—			10
Automobile liability - Commercial Lines	(15		)	20
Automobile liability - Personal Lines	(10		)	—
Homeowners	(20		)	—
Net asbestos reserves	—			—
Net environmental reserves	—			—
Catastrophes	(47		)	(12		)
Uncollectible reinsurance	22			—
Other reserve re-estimates, net	4			8
Total prior accident year development	$	(139	)	$	1

Re-estimates of prior accident year reserves for the nine months endedSeptember 30, 2018

Workers’ compensation reserveswere reduced in small commercial and middle market, primarily for accident years 2012 to 2015, as both claim frequency and medical claim severity have emerged favorably compared to previous reserve estimates.

General liability reserveswere increased, primarily due to an increase in reserves for higher hazard general liability exposures in middle market for accident years 2009 to 2017, partially offset by a decrease in reserves for other lines within middle market, including premises and operations, umbrella and products liability, principally for accident years 2015 and prior. Contributing to the increase in reserves for higher hazard general liability exposures was an increase in large losses and, in more recent accident years, an increase in claim frequency. Contributing to the reduction in reserves for other middle market lines were more favorable outcomes due to initiatives to reduce legal expenses. In addition, reserve increases for claims with lead paint exposure were offset by reserve decreases for other mass torts and extra-contractual liability claims.

Package business reserveswere reduced, primarily due to lower reserve estimates for both liability and property for accident years 2010 and prior, including a recovery of loss adjustment expenses for the 2005 accident year.

Commercial property reserves were reduced, driven by an increase in estimated reinsurance recoverables on middle market property losses from the 2017 accident year.

Professional liability reserves were reduced, principally for accident years 2014 and prior, for directors and officers liability claims principally due to a number of older claims closing with limited or no payment.

Automobile liability reserveswere reduced, primarily driven by reduced estimates of loss adjustment expenses in small commercial for recent accident years and favorable development in personal automobile liability for accident years 2014 to 2017, principally due to lower severity, including with uninsured and underinsured motorist claims.

Homeowners reserveswere reduced, primarily in accident years 2013 to 2017, driven by lower than expected severity across multiple perils.

Catastrophes reserves were reduced, primarily as a result of lower estimated net losses from 2017 catastrophes, principally related to hurricanes Harvey and Irma. Before reinsurance, estimated losses for 2017 catastrophe events decreased by $133 in the nine months ended September 30, 2018, resulting in a decrease in reinsurance recoverables of $90 as the Company no longer expects to recover under the 2017 Property Aggregate reinsurance treaty as aggregate ultimate losses for 2017 catastrophe events are now projected to be less than $850.

Uncollectible reinsurance reserves were increased due to lower anticipated recoveries related to older accident years.

Re-estimates of prior accident year reserves for thenine months endedSeptember 30, 2017

Workers’ compensation reserves were reduced, primarily in small commercial, given the continued emergence of favorable frequency for accident years 2013 to 2015. Management has placed additional weight on this favorable experience as it becomes more credible.

General liability reserves were increased for the 2013 to 2016 accident years on a class of business that insures service and maintenance contractors. This increase was partially offset by a decrease in recent accident year reserves for other middle market general liability reserves.

Package reserveswere reduced for accident years 2013 and prior largely due to reducing the Company's estimate of allocated loss adjustment expenses incurred to settle the claims.

Bond business reservesincreased for customs bonds written between 2000 and 2010 which was partly offset by a reduction in reserves for recent accident years as reported losses for commercial and contract surety have emerged favorably.

Automobile liability reserves within Commercial Lines were increased in small commercial and large national accounts for the 2013 to 2016 accident years, driven by higher frequency of more severe accidents, including litigated claims.

Catastrophes reserves were reduced primarily due to lower estimates of 2016 wind and hail event losses and a decrease in losses on a 2015 wildfire.

Group Life, Disability and Accident Products

Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses

	For the nine months ended September 30,
	2018			2017
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	$	8,512		$	5,772
Reinsurance recoverables	209			208
Beginning liabilities for unpaid losses and loss adjustment expenses, net	8,303			5,564
Add: Aetna U.S. group life and disability business acquisition [1]	42			—
Provision for unpaid losses and loss adjustment expenses
Current incurral year	3,423			1,960
Prior year's discount accretion	175			148
Prior incurral year development [2]	(284		)	(162		)
Total provision for unpaid losses and loss adjustment expenses [3]	3,314			1,946
Less: payments
Current incurral year	1,659			917
Prior incurral years	1,741			1,118
Total payments	3,400			2,035
Ending liabilities for unpaid losses and loss adjustment expenses, net	8,259			5,475
Reinsurance recoverables	241			208
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	8,500		$	5,683

[1] Represents an adjustment to Aetna U.S. group life and disability business reserves, net of reinsurance as of the acquisition date, upon finalization of the opening balance sheet.

[2] Prior incurral year development represents the change in estimated ultimate incurred losses and loss adjustment expenses for prior incurral years on a discounted basis.

[3] Includes unallocated loss adjustment expenses of $131, and $74 for the nine months endedSeptember 30, 2018 and 2017, respectively, that are recorded in insurance operating costs and other expenses in the Condensed Consolidated Statements of Operations.

Re-estimates of prior incurral years reserves for the nine months endedSeptember 30, 2018

Group disability-Prior period reserve estimates decreased by approximately $195 largely driven by group long-term disability claim recoveries higher than prior reserve assumptions and claim incidence lower than prior assumptions.  Short-term disability has also experienced favorable claim recoveries.

Group life and accident (including group life premium waiver)-Prior period reserve estimates decreased by approximately $85 largely driven by lower-than-previously expected claim incidence inclusive of group life, group life premium waiver, and group accidental death & dismemberment.

Re-estimates of prior incurral years reserves for the nine months endedSeptember 30, 2017

Group disability-Prior period reserve estimates decreased by approximately $105 largely driven by group long-term disability claim recoveries higher than prior reserve assumptions. This favorability was partially reduced by lower expectation of future benefit offsets, particularly lower Social Security disability income approval rates and longer decision turnaround times in the Social Security Administration.

Group life and accident (including group life premium waiver)-Prior period reserve estimates decreased by approximately $55 largely driven by lower than previously expected claim incidence in group life and group life premium waiver and lower than expected severity on group accidental death & dismemberment.

Changes in Reserves for Future Policy Benefits[1]
Liability balance as of January 1, 2018	$	713
Incurred	10
Paid	(25		)
Change in unrealized investment gains and losses	(42		)
Liability balance as of September 30, 2018	$	656
Reinsurance recoverable asset, as of January 1, 2018	$	26
Incurred	10
Paid	(1		)
Reinsurance recoverable asset, as of September 30, 2018	$	35

Liability balance as of January 1, 2017	$	322
Incurred	27
Paid	(24		)
Change in unrealized investment gains and losses	(9		)
Liability balance as of September 30, 2017	$	316
Reinsurance recoverable asset, as of January 1, 2017	$	28
Incurred	(6		)
Paid	—
Reinsurance recoverable asset, as of September 30, 2017	$	22

[1]Reserves for future policy benefits includes paid-up life insurance and whole-life policies resulting from conversion from group life policies included within the Group Benefits segment and reserves for run-off structured settlement and terminal funding agreement liabilities which are in the Corporate category.

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Reserve for Future Policy Benefits

9 Months Ended

Sep. 30, 2018

Insurance Loss Reserves [Abstract]

Reserve for Future Policy Benefits

Property and Casualty Insurance Products

Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses

	For the nine months ended September 30,
	2018			2017
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	$	23,775		$	22,545
Reinsurance and other recoverables	3,957			3,488
Beginning liabilities for unpaid losses and loss adjustment expenses, net	19,818			19,057
Provision for unpaid losses and loss adjustment expenses
Current accident year	5,151			5,587
Prior accident year development	(139		)	1
Total provision for unpaid losses and loss adjustment expenses	5,012			5,588
Less payments
Current accident year	1,647			1,770
Prior accident years	3,166			3,143
Total payments	4,813			4,913
Ending liabilities for unpaid losses and loss adjustment expenses, net	20,017			19,732
Reinsurance and other recoverables	3,780			3,508
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	23,797		$	23,240

Unfavorable (Favorable) Prior Accident Year Development

	For the nine months ended September 30,
	2018			2017
Workers’ compensation	$	(97	)	$	(29	)
Workers’ compensation discount accretion	30			21
General liability	32			10
Package business	(16		)	(22		)
Commercial property	(10		)	(5		)
Professional liability	(12		)	—
Bond	—			10
Automobile liability - Commercial Lines	(15		)	20
Automobile liability - Personal Lines	(10		)	—
Homeowners	(20		)	—
Net asbestos reserves	—			—
Net environmental reserves	—			—
Catastrophes	(47		)	(12		)
Uncollectible reinsurance	22			—
Other reserve re-estimates, net	4			8
Total prior accident year development	$	(139	)	$	1

Re-estimates of prior accident year reserves for the nine months endedSeptember 30, 2018

Workers’ compensation reserveswere reduced in small commercial and middle market, primarily for accident years 2012 to 2015, as both claim frequency and medical claim severity have emerged favorably compared to previous reserve estimates.

General liability reserveswere increased, primarily due to an increase in reserves for higher hazard general liability exposures in middle market for accident years 2009 to 2017, partially offset by a decrease in reserves for other lines within middle market, including premises and operations, umbrella and products liability, principally for accident years 2015 and prior. Contributing to the increase in reserves for higher hazard general liability exposures was an increase in large losses and, in more recent accident years, an increase in claim frequency. Contributing to the reduction in reserves for other middle market lines were more favorable outcomes due to initiatives to reduce legal expenses. In addition, reserve increases for claims with lead paint exposure were offset by reserve decreases for other mass torts and extra-contractual liability claims.

Package business reserveswere reduced, primarily due to lower reserve estimates for both liability and property for accident years 2010 and prior, including a recovery of loss adjustment expenses for the 2005 accident year.

Commercial property reserves were reduced, driven by an increase in estimated reinsurance recoverables on middle market property losses from the 2017 accident year.

Professional liability reserves were reduced, principally for accident years 2014 and prior, for directors and officers liability claims principally due to a number of older claims closing with limited or no payment.

Automobile liability reserveswere reduced, primarily driven by reduced estimates of loss adjustment expenses in small commercial for recent accident years and favorable development in personal automobile liability for accident years 2014 to 2017, principally due to lower severity, including with uninsured and underinsured motorist claims.

Homeowners reserveswere reduced, primarily in accident years 2013 to 2017, driven by lower than expected severity across multiple perils.

Catastrophes reserves were reduced, primarily as a result of lower estimated net losses from 2017 catastrophes, principally related to hurricanes Harvey and Irma. Before reinsurance, estimated losses for 2017 catastrophe events decreased by $133 in the nine months ended September 30, 2018, resulting in a decrease in reinsurance recoverables of $90 as the Company no longer expects to recover under the 2017 Property Aggregate reinsurance treaty as aggregate ultimate losses for 2017 catastrophe events are now projected to be less than $850.

Uncollectible reinsurance reserves were increased due to lower anticipated recoveries related to older accident years.

Re-estimates of prior accident year reserves for thenine months endedSeptember 30, 2017

Workers’ compensation reserves were reduced, primarily in small commercial, given the continued emergence of favorable frequency for accident years 2013 to 2015. Management has placed additional weight on this favorable experience as it becomes more credible.

General liability reserves were increased for the 2013 to 2016 accident years on a class of business that insures service and maintenance contractors. This increase was partially offset by a decrease in recent accident year reserves for other middle market general liability reserves.

Package reserveswere reduced for accident years 2013 and prior largely due to reducing the Company's estimate of allocated loss adjustment expenses incurred to settle the claims.

Bond business reservesincreased for customs bonds written between 2000 and 2010 which was partly offset by a reduction in reserves for recent accident years as reported losses for commercial and contract surety have emerged favorably.

Automobile liability reserves within Commercial Lines were increased in small commercial and large national accounts for the 2013 to 2016 accident years, driven by higher frequency of more severe accidents, including litigated claims.

Catastrophes reserves were reduced primarily due to lower estimates of 2016 wind and hail event losses and a decrease in losses on a 2015 wildfire.

Group Life, Disability and Accident Products

Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses

	For the nine months ended September 30,
	2018			2017
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	$	8,512		$	5,772
Reinsurance recoverables	209			208
Beginning liabilities for unpaid losses and loss adjustment expenses, net	8,303			5,564
Add: Aetna U.S. group life and disability business acquisition [1]	42			—
Provision for unpaid losses and loss adjustment expenses
Current incurral year	3,423			1,960
Prior year's discount accretion	175			148
Prior incurral year development [2]	(284		)	(162		)
Total provision for unpaid losses and loss adjustment expenses [3]	3,314			1,946
Less: payments
Current incurral year	1,659			917
Prior incurral years	1,741			1,118
Total payments	3,400			2,035
Ending liabilities for unpaid losses and loss adjustment expenses, net	8,259			5,475
Reinsurance recoverables	241			208
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	8,500		$	5,683

[1] Represents an adjustment to Aetna U.S. group life and disability business reserves, net of reinsurance as of the acquisition date, upon finalization of the opening balance sheet.

[2] Prior incurral year development represents the change in estimated ultimate incurred losses and loss adjustment expenses for prior incurral years on a discounted basis.

[3] Includes unallocated loss adjustment expenses of $131, and $74 for the nine months endedSeptember 30, 2018 and 2017, respectively, that are recorded in insurance operating costs and other expenses in the Condensed Consolidated Statements of Operations.

Re-estimates of prior incurral years reserves for the nine months endedSeptember 30, 2018

Group disability-Prior period reserve estimates decreased by approximately $195 largely driven by group long-term disability claim recoveries higher than prior reserve assumptions and claim incidence lower than prior assumptions.  Short-term disability has also experienced favorable claim recoveries.

Group life and accident (including group life premium waiver)-Prior period reserve estimates decreased by approximately $85 largely driven by lower-than-previously expected claim incidence inclusive of group life, group life premium waiver, and group accidental death & dismemberment.

Re-estimates of prior incurral years reserves for the nine months endedSeptember 30, 2017

Group disability-Prior period reserve estimates decreased by approximately $105 largely driven by group long-term disability claim recoveries higher than prior reserve assumptions. This favorability was partially reduced by lower expectation of future benefit offsets, particularly lower Social Security disability income approval rates and longer decision turnaround times in the Social Security Administration.

Group life and accident (including group life premium waiver)-Prior period reserve estimates decreased by approximately $55 largely driven by lower than previously expected claim incidence in group life and group life premium waiver and lower than expected severity on group accidental death & dismemberment.

Changes in Reserves for Future Policy Benefits[1]
Liability balance as of January 1, 2018	$	713
Incurred	10
Paid	(25		)
Change in unrealized investment gains and losses	(42		)
Liability balance as of September 30, 2018	$	656
Reinsurance recoverable asset, as of January 1, 2018	$	26
Incurred	10
Paid	(1		)
Reinsurance recoverable asset, as of September 30, 2018	$	35

Liability balance as of January 1, 2017	$	322
Incurred	27
Paid	(24		)
Change in unrealized investment gains and losses	(9		)
Liability balance as of September 30, 2017	$	316
Reinsurance recoverable asset, as of January 1, 2017	$	28
Incurred	(6		)
Paid	—
Reinsurance recoverable asset, as of September 30, 2017	$	22

[1]Reserves for future policy benefits includes paid-up life insurance and whole-life policies resulting from conversion from group life policies included within the Group Benefits segment and reserves for run-off structured settlement and terminal funding agreement liabilities which are in the Corporate category.

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Debt

9 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

Debt

Senior Notes

On March 15, 2018, The Hartford issued $500 of 4.4% senior notes ("4.4% Notes") due March 15, 2048 for net proceeds of approximately $490, after deducting underwriting discounts and expenses from the offering. Interest is payable semi-annually in arrears on March 15 and September 15, commencing September 15, 2018. The Hartford, at its option, can redeem the 4.4% Notes at any time, in whole or in part, at a redemption price equal to the greater of 100% of the principal amount being redeemed or a make-whole amount based on a comparable maturity US Treasury plus 25 basis points, plus any accrued and unpaid interest, except the option of a make-whole payment is not applicable within the final six months before maturity.

On March 15, 2018, The Hartford repaid at maturity the $320 principal amount of its 6.3% senior notes.

Junior Subordinated Debentures

On June 15, 2018, The Hartford redeemed $500 aggregate principal amount of its 8.125% Fixed-to-Floating Rate Junior Subordinated Debentures due 2068. During the initial offering of the 8.125% debentures, the Company entered into a replacement capital covenant ("RCC"), and under the terms of the RCC, if the Company redeemed the 8.125% debentures at any time prior to June 15, 2048 it could only do so with the proceeds from the sale of certain qualifying replacement securities. The 3 month Libor plus 2.125% debentures issued February 15, 2017 are qualifying replacement securities within the definition of RCC. In connection with this redemption, the Company recognized a $6 loss on extinguishment of debt for unamortized deferred debt issuance costs.

Revolving Credit Facility

On March 29, 2018, the Company entered into an amendment to its Five-Year Credit Agreement dated October 31, 2014. The Amendment reset the level of the Company's minimum consolidated net worth financial covenant to $9 billion excluding AOCI from its former $13.5 billion (where net worth was defined as stockholders' equity excluding AOCI and including junior subordinated debt), among other updates. Among other changes, under an amended and restated credit agreement that became effective in June 2018 after the closing of the sale of the Company's life and annuity run-off business, the aggregate amount of principal of the credit facility decreased from $1 billion to $750, including a reduction to the amount available for letters of credit from $250 to $100, the maturity date was extended to March 29, 2023, and the liens covenant and certain other covenants were modified.

Revolving loans from the Credit Facility may be in multiple currencies. U.S. dollar loans will bear interest at a floating rate equivalent to an indexed rate depending on the type of borrowing and a basis point spread based on The Hartford's credit rating and will mature no later than March 29, 2023. Letters of credit issued from the Credit Facility bear a fee based on The Hartford's credit rating and expire no later than March 29, 2024. The Credit Facility requires the Company to maintain a minimum consolidated net worth excluding AOCI of $9 billion, limit the ratio of senior debt to capitalization, excluding AOCI, at 35% and meet other customary covenants. The Credit Facility is for general corporate purposes.

As of September 30, 2018, no borrowings were outstanding and $3 in letters of credit were issued under the Credit Facility and the Company was in compliance with all financial covenants.

Commercial Paper

As of September 30, 2018, the Hartford's maximum borrowings available under its commercial paper program was $750 and there was no commercial paper outstanding. The Company is dependent upon market conditions to access short-term financing through the issuance of commercial paper to investors. On July 19, 2018, the Board of Directors revised the Company's commercial paper issuance authorization from $1 billion to $750 to align the program with the Company's $750 five year revolving credit facility which became effective on June 11, 2018.

Collateralized Advances with Federal Home Loan Bank of Boston

In August 2018, the Company’s subsidiaries, Hartford Fire Insurance Company (“Hartford Fire”) and Hartford Life and Accident Insurance Company (“HLA”), became members of the Federal Home Loan Bank of Boston (“FHLBB”). Membership allows these subsidiaries access to collateralized advances, which may be short- or long-term with fixed or variable rates. FHLBB membership required the purchase of member stock and requires additional member stock ownership of 3% or 4% of any amount borrowed. Acceptable forms of collateral include real estate backed fixed maturities and mortgage loans and the amount of advances that can be taken is limited to a percentage of the fair value of the assets that ranges from a high of 97% for US government-backed fixed maturities maturing within 3 years to a low of 40% for A-rated commercial mortgage-backed fixed maturities maturing in 5 years or more. In its consolidated balance sheets, The Hartford would present the liability for advances taken based on use of the funds with advances for general corporate purposes presented in short- or long-term debt and advances to earn incremental investment income presented in other liabilities, consistent with other collateralized financing transactions such as securities lending and repurchase agreements. The Connecticut Department of Insurance (“CTDOI”) permits Hartford Fire and HLA to pledge up to $1.3 billion and $0.5 billion in qualifying assets, respectively, without prior approval, to secure FHLBB advances in 2018. The pledge limit is determined annually based on statutory admitted assets and capital and surplus of Hartford Fire and HLA, respectively. As of September 30, 2018, there were no advances outstanding under the FHLBB facility.

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Income Taxes

9 Months Ended

Sep. 30, 2018

Income Tax Disclosure [Abstract]

Income Taxes

Income Tax Rate Reconciliation
	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Tax provision at U.S. federal statutory rate [1]	$	112		$	64		$	333		$	105
Tax-exempt interest	(16		)	(31		)	(50		)	(91		)
Executive compensation	1			—			8			—
Stock-based compensation	(3		)	(4		)	(5		)	(12		)
Tax Reform	11			—			13			—
Other	(2		)	7			(2		)	3
Provision for income taxes	$	103		$	36		$	297		$	5

[1]Due to the passage of Tax Reform on December 22, 2017, current and prior period federal statutory rates are reflected at 21% and 35% respectively.

Rollforward of Unrecognized Tax Benefits
	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Balance, beginning of period	$	9	$	12	$	9	$	12
Gross increases - tax positions in prior period	5		—		5		—
Gross decreases - tax positions in prior period	—		—		—		—
Balance, end of period	$	14	$	12	$	14	$	12

The Company's unrecognized tax benefits were increased by $5 for the three and nine months ended September 30, 2018 due to the filing of the Company's 2017 federal income tax return.

The entire amount of unrecognized tax benefits, if recognized, would affect the effective tax rate in the period of the release. In addition, for the three and nine months ended September 30, 2018 the Company recorded a receivable of $5 related to a tax indemnification agreement associated with the sale of Talcott Resolution. The receivable is separate from the tax liability and is classified as an other asset on the balance sheet.

For the three and nine months ended September 30, 2018, the Company recorded income tax expenses of $11 and $13, respectively, related to tax reform due to the filing of the Company's 2017 federal income tax return and finalization of the opening balance sheet for the Aetna Group Benefits acquisition as a lower corporate income tax rate (post acquisition) reduced the value of net deferred tax assets that were adjusted during the measurement period.

The federal audits have been completed through 2013, and the Company is not currently under examination for any open years. Management believes that adequate provision has been made in the consolidated financial statements for any potential adjustments that may result from tax examinations and other tax-related matters for all open tax years.

The Company classifies interest and penalties (if applicable) as income tax expense in the consolidated financial statements. The Company recognized no interest expense for the three and nine months ended September 30, 2018 and 2017. The Company had no interest payable as of September 30, 2018 and 2017. The Company does not believe it would be subject to any penalties in any open tax years and, therefore, has not recorded any accrual for penalties.

Net deferred income taxes include the future tax benefits associated with the net operating loss carryover, foreign tax credit carryover and general business credit carryforward as shown in the table below.

Future Tax Benefits
	As of
	September 30, 2018				Expiration
	Carryover amount		Expected tax benefit, gross		Dates			Amount
Net operating loss carryover - U.S.	$	2,814	$	591	2023	-	2036	$	2,814
Net operating loss carryover - foreign	$	4	$	—	No expiration			$	4
Foreign tax credit carryover	$	5	$	5	2023	-	2024	$	5
General business credit carryover	$	4	$	4	2031	-	2037	$	4

Net Operating Loss Carryover

U.S. Net Operating Losses ("NOLs") reflected above arose in taxable years prior to 2017 and are still subject to prior tax law which allows for carryback and limits the period over which carryforwards may be used to offset taxable income as shown in the above table. Utilization of the Company's loss carryovers is dependent upon the generation of sufficient future taxable income. Given the expected earnings of the Company going forward, including earnings of its property and casualty, group benefits and mutual fund businesses, the Company expects to generate sufficient taxable income in the future to utilize its net operating loss carryover. Although the Company projects there will be sufficient future taxable income to fully recover the remainder of the loss carryover, the Company's estimate of the likely realization may change over time.

Tax Credit Carryovers

Foreign Tax Credits and General Business Credits- These credits are available to offset regular federal income taxes from future taxable income. The use of these credits prior to expiration depends on the generation of sufficient taxable income to first utilize all U.S. net operating loss carryovers. However, the Company has purchased certain investments which allow for utilization of the foreign tax credits without first using the net operating loss carryover. Consequently, the Company believes it is more likely than not the foreign tax credit carryover will be fully realized. Accordingly, no valuation allowance has been provided.

Alternative Minimum Tax Credit Carryovers- As of September 30, 2018, the Company had alternative minimum tax credit (AMT) carryovers, net of a sequestration fee payable, of $789, which are reflected as current income tax receivables within Other Assets in the accompanying condensed consolidated balance sheet. For the three and nine months ended September 30, 2018, the Company recorded a decrease in the AMT of $4 due to the filing of the 2017 federal income tax return as well as filings of the 2014, 2015 and 2016 amended federal income tax returns. AMT credits may be used to offset a regular tax liability for any taxable year beginning after December 31, 2017, and are refundable at an amount equal to 50 percent of the excess of the minimum tax credit for the taxable year over the amount of the credit allowable for the year against regular tax liability. Any remaining credits not used against regular tax liability are refundable in the 2021 tax year to be collected in 2022. The sequestration fee applies to refunds of AMT credits but does not apply if those credits are used against regular tax liability. As of September 30, 2018, the Company's AMT credit carryover was net of an estimated sequestration fee payable of $52, but the amount of the fee that is ultimately payable is subject to change depending on the level and timing of future taxable income and any subsequent changes in the sequestration rate. For the three and nine months ended September 30, 2018, the Company recorded income tax benefits of $0 and $3, respectively, related to the reduction of the sequestration rate from 6.6 percent to 6.2 percent.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Management evaluates each contingent matter separately. A loss is recorded if probable and reasonably estimable. Management establishes liabilities for these contingencies at its “best estimate,” or, if no one number within the range of possible losses is more probable than any other, the Company records an estimated liability at the low end of the range of losses.

Litigation

The Hartford is involved in claims litigation arising in the ordinary course of business, both as a liability insurer defending or providing indemnity for third-party claims brought against insureds and as an insurer defending coverage claims brought against it. The Hartford accounts for such activity through the establishment of unpaid loss and loss adjustment expense reserves. Subject to the uncertainties in the following discussion under the caption “Asbestos and Environmental Claims,” management expects that the ultimate liability, if any, with respect to such ordinary-course claims litigation, after consideration of provisions made for potential losses and costs of defense, will not be material to the consolidated financial condition, results of operations or cash flows of The Hartford.

The Hartford is also involved in other kinds of legal actions, some of which assert claims for substantial amounts. In addition to the matter described below, these actions include putative class actions seeking certification of a state or national class. Such putative class actions have alleged, for example, underpayment of claims or improper sales or underwriting practices in connection with various kinds of insurance policies, such as personal and commercial automobile, property, disability, life and inland marine. The Hartford also is involved in individual actions in which punitive damages are sought, such as claims alleging bad faith in the handling of insurance claims or other allegedly unfair or improper business practices. Like many other insurers, The Hartford also has been joined in actions by asbestos plaintiffs asserting, among other things, that insurers had a duty to protect the public from the dangers of asbestos and that insurers committed unfair trade practices by asserting defenses on behalf of their policyholders in the underlying asbestos cases. Management expects that the ultimate liability, if any, with respect to such lawsuits, after consideration of provisions made for estimated losses, will not be material to the consolidated financial condition of The Hartford. Nonetheless, given the large or indeterminate amounts sought in certain of these actions, and the inherent unpredictability of litigation, the outcome in certain matters could, from time to time, have a material adverse effect on the Company’s results of operations or cash flows in particular quarterly or annual periods.

Mutual Funds Litigation — In February 2011, a derivative action was brought on behalf of six Hartford retail mutual funds in the United States District Court for the District of New Jersey, alleging that Hartford Investment Financial Services, LLC (“HIFSCO”), an indirect subsidiary of the Company, received excessive advisory and distribution fees in violation of its statutory fiduciary duty under Section 36(b) of the Investment Company Act of 1940. During the course of the litigation, the claims regarding distribution fees were dismissed without prejudice, the lineup of funds as plaintiffs changed several times, and the plaintiffs added as a defendant Hartford Funds Management Company (“HFMC”), an indirect subsidiary of the Company that assumed the role of advisor to the funds as of January 2013. In June 2015, HFMC and HIFSCO moved for summary judgment, and plaintiffs cross-moved for partial summary judgment with respect to one fund. In March 2016, the court denied the plaintiff's motion, and granted summary judgment for HIFSCO and HFMC with respect to one fund, leaving six funds as plaintiffs: The Hartford Balanced Fund, The Hartford Capital Appreciation Fund, The Hartford Floating Rate Fund, The Hartford Growth Opportunities Fund, The Hartford Healthcare Fund, and The Hartford Inflation Plus Fund. A bench trial on the issue of liability was held in November 2016. In February 2017, the court granted judgment for HIFSCO and HFMC as to all claims. Plaintiffs appealed. In August 2018, the judgment was affirmed by the United States Court of Appeals for the Third Circuit. Although plaintiffs may still seek review by the United States Supreme Court, management believes that the possibility of a material adverse outcome in this matter is remote.

Asbestos and Environmental Claims–The Company continues to receive asbestos and environmental ("A&E") claims. Asbestos claims relate primarily to bodily injuries asserted by people who came in contact with asbestos or products containing asbestos. Environmental claims relate primarily to pollution and related clean-up costs.

The Company wrote several different categories of insurance contracts that may cover A&E claims. First, the Company wrote primary policies providing the first layer of coverage in an insured’s liability program. Second, the Company wrote excess and umbrella policies providing higher layers of coverage for losses that exhaust the limits of underlying coverage. Third, the Company acted as a reinsurer assuming a portion of those risks assumed by other insurers writing primary, excess, umbrella and reinsurance coverages.

Significant uncertainty limits the ability of insurers and reinsurers to estimate the ultimate reserves necessary for unpaid gross losses and expenses related to environmental and particularly asbestos claims. The degree of variability of gross reserve estimates for these exposures is significantly greater than for other more traditional exposures.

In the case of the reserves for asbestos exposures, factors contributing to the high degree of uncertainty include inadequate loss development patterns, plaintiffs’ expanding theories of liability, the risks inherent in major litigation, and inconsistent emerging legal doctrines. Furthermore, over time, insurers, including the Company, have experienced significant changes in the rate at which asbestos claims are brought, the claims experience of particular insureds, and the value of claims, making predictions of future exposure from past experience uncertain. Plaintiffs and insureds also have sought to use bankruptcy proceedings, including “pre-packaged” bankruptcies, to accelerate and increase loss payments by insurers. In addition, some policyholders have asserted new classes of claims for coverages to which an aggregate limit of liability may not apply. Further uncertainties include insolvencies of other carriers and unanticipated developments pertaining to the Company’s ability to recover reinsurance for A&E claims. Management believes these issues are not likely to be resolved in the near future.

In the case of the reserves for environmental exposures, factors contributing to the high degree of uncertainty include expanding theories of liability and damages, the risks inherent in major litigation, inconsistent decisions concerning the existence and scope of coverage for environmental claims, and uncertainty as to the monetary amount being sought by the claimant from the insured.

The reporting pattern for assumed reinsurance claims, including those related to A&E claims, is much longer than for direct claims. In many instances, it takes months or years to determine that the policyholder’s own obligations have been met and how the reinsurance in question may apply to such claims. The delay in reporting reinsurance claims and exposures adds to the uncertainty of estimating the related reserves.

It is also not possible to predict changes in the legal and legislative environment and their effect on the future development of A&E claims.

Given the factors described above, the Company believes the actuarial tools and other techniques it employs to estimate the ultimate cost of claims for more traditional kinds of insurance exposure are less precise in estimating reserves for A&E exposures. For this reason, the Company principally relies on exposure-based analysis to estimate the ultimate costs of these claims, both gross and net of reinsurance, and regularly evaluates new account information in assessing its potential A&E exposures. The Company supplements this exposure-based analysis with evaluations of the Company’s historical direct net loss and expense paid and reported experience, and net loss and expense paid and reported experience by calendar and/or report year, to assess any emerging trends, fluctuations or characteristics suggested by the aggregate paid and reported activity.

While the Company believes that its current A&E reserves are appropriate, significant uncertainties limit the ability of insurers and reinsurers to estimate the ultimate reserves necessary for unpaid losses and related expenses. The ultimate liabilities, thus, could exceed the currently recorded reserves, and any such additional liability, while not estimable now, could be material to The Hartford’s consolidated operating results and liquidity.

As of September 30, 2018, the Company reported $1.1 billion of net asbestos reserves and $214 of net environmental reserves. While the Company believes that its current A&E reserves are appropriate, significant uncertainties limit our ability to estimate the ultimate reserves necessary for unpaid losses and related expenses. The ultimate liabilities, thus, could exceed the currently recorded reserves, and any such additional liability, while not reasonably estimable now, could be material to The Hartford's consolidated operating results and liquidity.

Effective December 31, 2016, the Company entered into an A&E adverse development cover ("ADC") reinsurance agreement with National Indemnity Company ("NICO"), a subsidiary of Berkshire Hathaway Inc., to reduce uncertainty about potential adverse development of A&E reserves. Under the ADC, the Company paid a reinsurance premium of $650 for NICO to assume adverse net loss and allocated loss adjustment expense reserve development up to $1.5 billion above the Company’s existing net A&E reserves as of December 31, 2016 of approximately $1.7 billion. The $650 reinsurance premium was placed in a collateral trust account as security for NICO’s claim payment obligations to the Company. Under retroactive reinsurance accounting, net adverse A&E reserve development after December 31, 2016 will result in an offsetting reinsurance recoverable up to the $1.5 billion limit. Cumulative ceded losses up to the $650 reinsurance premium paid are recognized as a dollar-for-dollar offset to direct losses incurred. Cumulative ceded losses exceeding the $650 reinsurance premium paid would result in a deferred gain. The deferred gain would be recognized over the claim settlement period in the proportion of the amount of cumulative ceded losses collected from the reinsurer to the estimated ultimate reinsurance recoveries. Consequently, until periods when the deferred gain is recognized as a benefit to earnings, cumulative adverse development of A&E claims after December 31, 2016 in excess of $650 may result in significant charges against earnings. Furthermore, cumulative adverse development of A&E claims could ultimately exceed the $1.5 billion treaty limit in which case any adverse development in excess of the treaty limit would be absorbed as a charge to earnings by the Company. In these scenarios, the effect of these changes could be material to the Company’s consolidated operating results and liquidity. As of September 30, 2018, the Company has incurred $285 in cumulative adverse development on A&E reserves that have been ceded under the ADC treaty with NICO, leaving approximately $1.2 billion of coverage available for future adverse net reserve development, if any.

Derivative Commitments

Certain of the Company’s derivative agreements contain provisions that are tied to the financial strength ratings, as set by nationally recognized statistical agencies, of the individual legal entity that entered into the derivative agreement. If the legal entity’s financial strength were to fall below certain ratings, the counterparties to the derivative agreements could demand immediate and ongoing full collateralization and in certain instances enable the counterparties to terminate the agreements and demand immediate settlement of all outstanding derivative positions traded under each impacted bilateral agreement. The settlement amount is determined by netting the derivative positions transacted under each agreement. If the termination rights were to be exercised by the counterparties, it could impact the legal entity’s ability to conduct hedging activities by increasing the associated costs and decreasing the willingness of counterparties to transact with the legal entity. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that are in a net liability position as of September 30, 2018 was $69, of which the legal entities have posted collateral of $68 in the normal course of business. Based on derivative market values as of September 30, 2018, a downgrade of one level below the current financial strength rates by either Moody's or S&P would not require additional assets to be posted as collateral. Based on derivative market values as of September 30, 2018, a downgrade of two levels below the current financial strength ratings by either Moody's or S&P would require an additional $8 of assets to be posted as collateral. These collateral amounts could change as derivative market values change, as a result of changes in our hedging activities or to the extent changes in contractual terms are negotiated. The nature of the collateral that we post, if required, is primarily in the form of U.S. Treasury bills, U.S. Treasury notes and government agency securities.

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Equity

9 Months Ended

Sep. 30, 2018

Equity [Abstract]

Equity

Capital Purchase Program ("CPP") Warrants

As of September 30, 2018 and December 31, 2017, respectively, the Company has 2.1 million and 2.2 million of CPP warrants outstanding and exercisable. CPP warrant exercises were 0.1 million and 0.6 million for the three months endedSeptember 30, 2018 and 2017, respectively. CPP warrant exercises were 0.2 million and 1.7 million for the nine months ended September 30,2018 and 2017, respectively.

The declaration of common stock dividends by the Company in excess of a threshold triggers a provision in the Company's warrant agreement with The Bank of New York Mellon resulting in adjustments to the CPP warrant exercise price. Accordingly, the declaration of a common stock dividend during the three months endedSeptember 30, 2018 resulted in an adjustment to the CPP warrant exercise price. The CPP warrant exercise price was $8.886 as of September 30, 2018 and $8.999 as of December 31, 2017.

Equity Repurchase Program

The Company does not currently have an equity repurchase authorization in 2018.

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Changes in and Reclassifications from Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2018

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Changes in and Reclassifications from Accumulated Other Comprehensive Income (Loss)

Changes in AOCI, Net of Tax for the Three Months Ended September 30, 2018
	Changes in
	Net Unrealized Gain on Securities			OTTI Losses in OCI			Net Gain on Cash Flow Hedging Instruments			Foreign Currency Translation Adjustments		Pension and Other Postretirement Plan Adjustments			AOCI, net of tax
Beginning balance	$	211		$	(3	)	$	(12	)	$	33	$	(1,582	)	$	(1,353	)
OCI before reclassifications	(183		)	(1		)	1			1		1			(181		)
Amounts reclassified from AOCI	12			—			(6		)	—		9			15
OCI, net of tax	(171		)	(1		)	(5		)	1		10			(166		)
Ending balance	$	40		$	(4	)	$	(17	)	$	34	$	(1,572	)	$	(1,519	)

Changes in AOCI, Net of Tax for the Nine Months Ended September 30, 2018
	Changes in
	Net Unrealized Gain on Securities			OTTI Losses in OCI			Net Gain on Cash Flow Hedging Instruments			Foreign Currency Translation Adjustments			Pension and Other Postretirement Plan Adjustments			AOCI, net of tax
Beginning balance	$	1,931		$	(3	)	$	18		$	34		$	(1,317	)	$	663
Cumulative effect of accounting changes, net of tax [1]	273			—			2			4			(284		)	(5		)
Adjusted balance, beginning of period	2,204			(3		)	20			38			(1,601		)	658
OCI before reclassifications [2]	(2,213		)	—			(12		)	(4		)	—			(2,229		)
Amounts reclassified from AOCI	49			(1		)	(25		)	—			29			52
OCI, net of tax	(2,164		)	(1		)	(37		)	(4		)	29			(2,177		)
Ending balance	$	40		$	(4	)	$	(17	)	$	34		$	(1,572	)	$	(1,519	)

[1]Includes reclassification to retained earnings of $88 of stranded tax effects and $93 of net unrealized gains. Refer to Note 1 - Basis of Presentation and Significant Accounting Policies for further information.

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

Reclassifications from AOCI
	Three Months Ended September 30, 2018			Nine Months Ended September 30, 2018			Affected Line Item in the Condensed Consolidated Statement of Operations
Net Unrealized Gain on Securities
Available-for-sale securities	$	(15	)	$	(59	)	Net realized capital gains
	(15		)	(59		)	Total before tax
	(3		)	(12		)	Income tax expense
	—			(2		)	Income from discontinued operations, net of tax
	$	(12	)	$	(49	)	Net income
OTTI Losses in OCI
Other than temporary impairments	$	—		$	—		Net realized capital gains
	—			—			Total before tax
	—			—			Income tax expense
	$	—		$	1		Income from discontinued operations, net of tax
	$	—		$	1		Net income
Net Gains on Cash Flow Hedging Instruments
Interest rate swaps	$	—		$	1		Net realized capital gains
Interest rate swaps	7			24			Net investment income
	7			25			Total before tax
	1			5			Income tax expense
	$	—		$	5		Income from discontinued operations, net of tax
	$	6		$	25		Net income
Pension and Other Postretirement Plan Adjustments
Amortization of prior service credit	$	2		$	5		Insurance operating costs and other expenses
Amortization of actuarial loss	(14		)	(42		)	Insurance operating costs and other expenses
	(12		)	(37		)	Total before tax
	(3		)	(8		)	Income tax expense
	$	(9	)	$	(29	)	Net income
Total amounts reclassified from AOCI	$	(15	)	$	(52	)	Net income

Changes in AOCI, Net of Tax for the Three Months Ended September 30, 2017
	Changes in
	Net Unrealized Gain on Securities			OTTI Losses in OCI			Net Gain on Cash Flow Hedging Instruments			Foreign Currency Translation Adjustments		Pension and Other Postretirement Plan Adjustments			AOCI, net of tax
Beginning balance	$	1,755		$	(3	)	$	57		$	13	$	(1,328	)	$	494
OCI before reclassifications	119			(1		)	(2		)	14		1			131
Amounts reclassified from AOCI	(34		)	—			(12		)	—		6			(40		)
OCI, net of tax	85			(1		)	(14		)	14		7			91
Ending balance	$	1,840		$	(4	)	$	43		$	27	$	(1,321	)	$	585

Changes in AOCI, Net of Tax for the Nine Months Ended September 30, 2017
	Changes in
	Net Unrealized Gain on Securities			OTTI Losses in OCI			Net Gain on Cash Flow Hedging Instruments			Foreign Currency Translation Adjustments		Pension and Other Postretirement Plan Adjustments			AOCI, net of tax
Beginning balance	$	1,276		$	(3	)	$	76		$	6	$	(1,692	)	$	(337	)
OCI before reclassifications	683			(1		)	7			21		(144		)	566
Amounts reclassified from AOCI	(119		)	—			(40		)	—		515			356
OCI, net of tax	564			(1		)	(33		)	21		371			922
Ending balance	$	1,840		$	(4	)	$	43		$	27	$	(1,321	)	$	585

Reclassifications from AOCI
	Three Months Ended September 30, 2017			Nine Months Ended September 30, 2017			Affected Line Item in the Condensed Consolidated Statement of Operations
Net Unrealized Gain on Securities
Available-for-sale securities	$	32		$	102		Net realized capital gains
	32			102			Total before tax
	11			36			Income tax expense
	13			53			Income from discontinued operations, net of tax
	$	34		$	119		Net income
Net Gains on Cash Flow Hedging Instruments
Interest rate swaps	$	—		$	5		Net realized capital gains
Interest rate swaps	8			27			Net investment income
	8			32			Total before tax
	3			11			Income tax expense
	7			19			Income from discontinued operations, net of tax
	$	12		$	40		Net income
Pension and Other Postretirement Plan Adjustments
Amortization of prior service credit	$	2		$	—		Insurance operating costs and other expenses
Amortization of actuarial loss	(12		)	(45		)	Insurance operating costs and other expenses
Settlement loss	—			(747		)	Insurance operating costs and other expenses
	(10		)	(792		)	Total before tax
	(4		)	(277		)	Income tax expense
	$	(6	)	$	(515	)	Net income
Total amounts reclassified from AOCI	$	40		$	(356	)	Net income

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Employee Benefit Plans

9 Months Ended

Sep. 30, 2018

Retirement Benefits [Abstract]

Employee Benefit Plans

The Company’s employee benefit plans are described in Note 18 - Employee Benefit Plans of Notes to Consolidated Financial Statements included in The Hartford’s 2017 Annual Report on Form 10-K. The Company made a contribution of $101 in September 2018 to the U.S. qualified defined benefit pension plan.

Net Periodic Benefit
	Pension Benefits						Other  Postretirement  Benefits
	Three Months Ended September 30,						Three Months Ended September 30,
	2018			2017			2018			2017
Service cost	$	1		$	1		$	—		$	—
Interest cost	36			36			1			2
Expected return on plan assets	(57		)	(55		)	(2		)	(2		)
Amortization of prior service credit	—			—			(2		)	(2		)
Amortization of actuarial loss	12			11			2			1
Settlements	—			—			—			—
Net periodic benefit	$	(8	)	$	(7	)	$	(1	)	$	(1	)

Net Periodic Cost (Benefit)
	Pension Benefits						Other  Postretirement  Benefits
	Nine months ended September 30,						Nine months ended September 30,
	2018			2017			2018			2017
Service cost	$	3		$	3		$	—		$	6
Interest cost	107			134			4			(6		)
Expected return on plan assets	(172		)	(214		)	(5		)	(5		)
Amortization of prior service credit	—			—			(5		)	—
Amortization of actuarial loss	37			41			5			4
Settlements	—			750			—			—
Net periodic cost (benefit)	$	(25	)	$	714		$	(1	)	$	(1	)

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Stock Compensation Plans

9 Months Ended

Sep. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

In the second quarter of 2018, The Hartford modified the terms of the portion of its outstanding 2016 and 2017 performance share awards that are based on actual versus targeted return on equity over the performance period. The modification eliminated the benefit to return on equity that arose from the charge against earnings in 2017 driven by the effect of the lower corporate income tax rate on the carrying value of net deferred tax assets. This modification had no impact on compensation cost recognized over the vesting period since compensation cost based on the original performance share conditions is projected to be higher than what the cost would be based on the performance share conditions as modified.

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Business Dispositions and Discontinued Operations

9 Months Ended

Sep. 30, 2018

Discontinued Operations and Disposal Groups [Abstract]

Business Dispositions and Discontinued Operations

Discontinued Operations

Sale of life and annuity run-off business

On May 31, 2018, the Company’s wholly-owned subsidiary, Hartford Holdings, Inc. (HHI), completed the sale of its life and annuity run-off business to a group of investors led by Cornell Capital LLC, Atlas Merchant Capital LLC, TRB Advisors LP, Global Atlantic Financial Group, Pine Brook and J. Safra Group. Under the terms of the sale agreement signed December 3, 2017, the investor group formed a limited partnership, Hopmeadow Holdings LP, that acquired Hartford Life, Inc. (HLI), and its life and annuity operating subsidiaries, for cash of approximately $1.4 billion after a pre-closing dividend to The Hartford of $300. The Hartford received a 9.7% ownership interest in the limited partnership valued at a cost of $164. In addition, as part of the terms of the sale agreement, The Hartford reduced its long-term debt by $142 because the debt, which was issued by HLI, was included as part of the sale. Including cash proceeds and the retained equity interest and net of transaction costs, net proceeds for the sale were approximately $1.5 billion. The life and annuity run-off operations met the criteria for reporting as discontinued operations and are reported in the Corporate category through the date of sale.

The Company has recognized a loss on sale within discontinued operations of approximately $3.1 billion including $3.3 billion in the fourth quarter of 2017 and a reduction in loss on sale of $202 in the first nine months of 2018. The reduction in loss on sale in 2018 primarily resulted from the reclassification to retained earnings of $193 of tax effects stranded in AOCI due to the accounting for Tax Reform and a $141 increase in estimated retained tax benefits, primarily net operating loss carryovers, partially offset by $104 of operating income from discontinued operations during the period up until the closing date and a reclassification of $10 of net unrealized capital gains from AOCI to retained earnings. See Note 1 - Adoption of New Accounting Standards within Basis of Presentation and Significant Accounting Policies, for additional information about the reclassifications from AOCI to retained earnings. The estimated amount of retained net operating loss carryovers depends on the estimated tax basis of the business sold which has increased since the date the Company entered into the sale agreement. At closing, shareholders’ equity was further reduced for the amount of AOCI of the life and annuity run-off business, which was approximately $758 largely consisting of net unrealized gains on investments, net of shadow DAC. The AOCI balance was $1 billion as of December 31, 2017.

Cash inflows and outflows from and to the life and annuity run-off business after closing were immaterial to the overall inflows and outflows the Company. Additionally, the revenues and expenses presented in continuing operations related to pre-disposal operations were immaterial.

The Company will manage invested assets of the life and annuity run-off business for an initial term of five years and provide transition services for up to 24 months.

The Hartford reported its 9.7% ownership interest in Hopmeadow Holdings LP in other assets in the Consolidated Balance Sheet, which is accounted for under the equity method. The Hartford recognizes its share of income in other revenues in the Condensed Consolidated Statement of Operations on a three month delay when financial information from the investee becomes available. The Company recognized $2 of income for the three and nine months ended September 30, 2018. The post-sale period amount represents month of June 2018 results as the Company's share of net income is dependent on the availability of financial information from the investee.

Major Classes of Assets and Liabilities Transferred to the Buyer in Connection with the Sale

	Carrying Value as of Closing			Carrying Value as of 12/31/2017
Assets
Cash and investments	$	27,058		$	30,135
Reinsurance recoverables	20,718			20,785
Loss accrual [1]	(3,044		)	(3,257		)
Other assets	2,907			1,439
Separate account assets	110,773			115,834
Total assets held for sale	158,412			164,936
Liabilities
Reserve for future policy benefits and unpaid loss and loss adjustment expenses	$	14,308		$	14,482
Other policyholder funds and benefits payable	28,680			29,228
Long-term debt	142			142
Other liabilities	2,222			2,756
Separate account liabilities	110,773			115,834
Total liabilities held for sale	$	156,125		$	162,442

[1] Represents the estimated accrued loss on sale of the Company's life and annuity run-off business.

Reconciliation of the Major Line Items Constituting Pretax Profit (Loss) of Discontinued Operations

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Revenues
Earned premiums	$	—		$	27		$	39		$	97
Fee income and other	—			217			382			665
Net investment income	—			326			519			964
Net realized capital gains (losses)	4			(29		)	(68		)	(53		)
Total revenues	4			541			872			1,673
Benefits, losses and expenses
Benefits, losses and loss adjustment expenses	—			356			535			1,036
Amortization of DAC	—			15			58			58
Insurance operating costs and other expenses [1]	(5		)	93			157			275
Total benefits, losses and expenses	(5		)	464			750			1,369
Income before income taxes	9			77			122			304
Income tax expense (benefit)	(7		)	(12		)	2			28
Income from operations of discontinued operations, net of tax	16			89			120			276
Net realized capital gain (loss) on disposal, net of tax	(11		)	—			202			—
Income from discontinued operations, net of tax	$	5		$	89		$	322		$	276

[1]Corporate allocated overhead has been included in continuing operations.

Cash flows from discontinued operations included in the Consolidated Statement of Cash Flows were as follows:

Cash Flows from Discontinued Operations

	Nine Months Ended September 30,
	2018			2017
Net cash provided by operating activities from discontinued operations	$	603		$	612
Net cash provided by investing activities from discontinued operations	$	463		$	266
Net cash used in financing activities from discontinued operations [1]	$	(737	)	$	(595	)
Cash paid for interest	$	—		$	2

[1] Excludes return of capital to parent of $619 and $598 for the nine months ended September 30, 2018 and 2017, respectively.

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Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Basis of Presentation

The Hartford Financial Services Group, Inc. is a holding company for insurance and financial services subsidiaries that provide property and casualty insurance, group life and disability products and mutual funds and exchange-traded products to individual and business customers in the United States (collectively, “The Hartford”, the “Company”, “we” or “our”).

On August 22, 2018, the Company announced it entered into a definitive agreement to acquire all outstanding common shares of The Navigators Group, Inc. ("Navigators Group"), a global specialty underwriter, for $70 a share, or $2.1 billion in cash. The transaction is expected to close in the first half of 2019, subject to approval by Navigators Group's shareholders and other customary closing conditions, including receipt of regulatory approvals.

On May 31, 2018, Hartford Holdings, Inc., a wholly owned subsidiary of the Company, completed the sale of the issued and outstanding equity of Hartford Life, Inc. (“HLI”), a holding company for its life and annuity operating subsidiaries. For further discussion of this transaction, see Note 18 - Business Dispositions and Discontinued Operations of Notes to Condensed Consolidated Financial Statements.

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 business through a reinsurance transaction. For further discussion of this transaction, see Note 2 - Business Acquisitions of Notes to Condensed Consolidated Financial Statements.

On May 10, 2017, the Company completed the sale of its United Kingdom ("U.K.") property and casualty run-off subsidiaries.

The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, which differ materially from the accounting practices prescribed by various insurance regulatory authorities. These Condensed Consolidated Financial Statements and Notes should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company's 2017 Form 10-K Annual Report. The results of operations for interim periods are not necessarily indicative of the results that may be expected for the full year.

The accompanying Condensed Consolidated Financial Statements and Notes are unaudited. These financial statements reflect all adjustments (generally consisting only of normal accruals) which are, in the opinion of management, necessary for the fair presentation of the financial position, results of operations and cash flows for the interim periods. The Company's significant accounting policies are summarized in Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements included in the Company's 2017 Form 10-K Annual Report.

Consolidation

Consolidation

The Condensed Consolidated Financial Statements include the accounts of The Hartford Financial Services Group, Inc., and entities in which the Company directly or indirectly has a controlling financial interest. Entities in which the Company has significant influence over the operating and financing decisions but does not control are reported using the equity method. All intercompany transactions and balances between The Hartford and its subsidiaries and affiliates that are not held for sale have been eliminated.

Discontinued Operations, Policy [Policy Text Block]

Discontinued Operations

The results of operations of a component of the Company are reported in discontinued operations when certain criteria are met as of the date of disposal, or earlier if classified as held-for-sale. When a component is identified for discontinued operations reporting, amounts for prior periods are retrospectively reclassified as discontinued operations. Components are identified as discontinued operations if they are a major part of an entity's operations and financial results such as a separate major line of business or a separate major geographical area of operations.

Use of Estimates

Use of Estimates

The preparation of financial statements, in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The most significant estimates include those used in determining property and casualty and group long-term disability insurance product reserves, net of reinsurance; evaluation of goodwill for impairment; valuation of investments and derivative instruments; valuation allowance on deferred tax assets; and contingencies relating to corporate litigation and regulatory matters.

Reclassification, Policy

Reclassifications

Certain reclassifications have been made to prior year financial information to conform to the current year presentation. In particular:

• Distribution costs within the Mutual Funds segment that were previously netted against fee income are presented gross in insurance operating costs and other expenses.

Adoption of New Accounting Standards

Adoption of New Accounting Standards

Reclassification of Effect of Tax Rate Change from AOCI to Retained Earnings

On January 1, 2018, the Company adopted the FASB's new guidance for the effect on deferred tax assets and liabilities related to items recorded in accumulated other comprehensive income ("AOCI") resulting from the Tax Cuts and Jobs Act of 2017 ("Tax Reform") enacted on December 22, 2017. Tax Reform reduced the federal tax rate applied to the Company’s deferred tax balances from 35% to 21% on enactment. Under U.S. GAAP, the Company recorded the total effect of the change in enacted tax rates on deferred tax balances as a charge to income tax expense within net income during the fourth quarter of 2017, including the change in deferred tax balances related to components of AOCI. The new accounting guidance permitted the Company to reclassify the “stranded” tax effects out of AOCI and into retained earnings that resulted from recording the tax effects of unrealized investment gains, unrecognized actuarial losses on pension and other postretirement benefit plans, and cumulative translation adjustments at a 35% tax rate because the 14 point reduction in tax rate was recognized in net income instead of other comprehensive income. On adoption, the Company recorded a reclassification of $88 from AOCI to retained earnings. As a result of the reclassification, in the first quarter of 2018, the Company reduced the estimated loss on sale recorded in income from discontinued operations by $193, net of tax, for the increase in AOCI related to the assets held for sale. The reduction in the loss on sale resulted in a corresponding increase in assets held for sale and AOCI as of January 1, 2018 and the AOCI associated with assets held for sale was removed from the balance sheet when the sale closed on May 31, 2018. Additionally, as of January 1, 2018, the Company reclassified $105 of stranded tax effects related to continuing operations which reduced AOCI and increased retained earnings.

Financial Instruments- Recognition and Measurement

On January 1, 2018, the Company adopted updated guidance issued by the FASB for the recognition and measurement of financial instruments through a cumulative effect adjustment to the opening balances of retained earnings and AOCI. The new guidance requires investments in equity securities to be measured at fair value with any changes in valuation reported in net income except for investments that are consolidated or are accounted for under the equity method of accounting. The new guidance also requires a deferred tax asset resulting from net unrealized losses on available-for-sale fixed maturities that are recognized in AOCI to be evaluated for recoverability in combination with the Company’s other deferred tax assets. Under prior guidance, the Company reported equity securities, available for sale ("AFS"), at fair value with changes in fair value reported in other comprehensive income. As of January 1, 2018, the Company reclassified from AOCI to retained earnings net unrealized gains of $83, after tax, related to equity securities having a fair value of $1.0 billion. In addition, $10 of net unrealized gains net of shadow DAC related to discontinued operations were reclassified from AOCI to retained earnings of the life and annuity run-off business held for sale, which increased the estimated loss on sale in 2018 by the same amount. Beginning in 2018, the Company reports equity securities at fair value with changes in fair value reported in net realized capital gains and losses.

Revenue Recognition

On January 1, 2018, the Company adopted the FASB’s updated guidance for recognizing revenue from contracts with customers, which excludes insurance contracts and financial instruments. Revenue subject to the guidance is recognized when, or as, goods or services are transferred to customers in an amount that reflects the consideration that an entity is expected to receive in exchange for those goods or services. For all but certain revenues associated with our Mutual Funds business, the updated guidance is consistent with previous guidance for the Company’s transactions and did not have an effect on the Company’s financial position, cash flows or net income. The updated guidance also updated criteria for determining when the Company acts as a principal or an agent. The Company determined that it is the principal for some of its mutual fund distribution service contracts and, upon adoption, reclassified distribution costs of $48 and $140 for the three and nine months ended September 30,2017, respectively, that were previously netted against fee income to insurance operating costs and other expenses.

Information about the nature, amount, timing of recognition and cash flows for the Company’s revenues subject to the updated guidance follows.

Revenue from Non-Insurance Contracts with Customers

		Three months ended September 30,				Nine months ended September 30,
	Revenue Line Item	2018		2017		2018		2017
Commercial Lines
Installment billing fees	Fee income	$	9	$	9	$	26	$	28
Personal Lines
Installment billing fees	Fee income	10		11		30		33
Insurance servicing revenues	Other revenues	24		24		66		66
Group Benefits
Administrative services	Fee income	43		19		131		57
Mutual Funds
Advisor, distribution and other management fees	Fee income	245		229		722		660
Other fees	Fee income	21		22		63		75
Corporate
Investment management and other fees	Fee income	15		1		21		2
Transition service revenues	Other revenues	6		—		8		—
Total revenues subject to updated guidance		$	373	$	315	$	1,067	$	921

Installment fees are charged on property and casualty insurance contracts for billing the insurance customer in installments over the policy term. These fees are recognized in fee income as earned on collection.

Insurance servicing revenues within Personal Lines consist of up-front commissions earned for collecting premiums and processing claims on insurance policies for which The Hartford does not assume underwriting risk, predominantly related to the National Flood Insurance Plan program. These insurance servicing revenues are recognized over the period of the flood program's policy terms.

Group Benefits products earn fee income from employers for the administration of underwriting, implementation and claims processing for employer self-funded plans and for leave management services. Fees are recognized as services are provided and collected monthly.

The Company provides investment management, administrative and distribution services to mutual funds and exchange-traded products. The Company assesses investment advisory, distribution and other asset management fees primarily based on the average daily net asset values from mutual funds and exchange-traded products, which are recorded in the period in which the services are provided and collected monthly. Fluctuations in domestic and international markets and related investment performance, volume and mix of sales and redemptions of mutual funds or exchange-traded products, and other changes to the composition of assets under management are all factors that ultimately have a direct effect on fee income earned.

Mutual Funds other fees primarily include transfer agent fees, generally assessed as a charge per account, and are recognized as fee income in the period in which the services are provided with payments collected monthly.

Corporate investment management and other fees are primarily for managing third party invested assets, including management of the invested assets of the Talcott Resolution life and annuity run-off business sold in the second quarter of 2018 ("Talcott Resolution"). These fees, calculated based on the average quarterly net asset values, are recorded in the period in which the services are provided and are collected quarterly. Fluctuations in markets and interest rates and other changes to the composition of assets under management are all factors that ultimately have a direct effect on fee income earned.

Corporate transition service revenues consist of operational services provided to The Hartford’s former life and annuity run-off business that will be provided for a period up to 24 months from the May 31, 2018 sale date. The transition service revenues are recognized as other revenues in the period in which the services are provided with payments collected monthly.

Future Adoption of New Accounting Standards

Hedging Activities

The FASB issued updated guidance on hedge accounting. See Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements included in the Company's 2017 Form 10-K Annual Report for more information on the future adoption of the new hedging activities accounting standard. The Company will adopt the updated guidance January 1, 2019, as required, although earlier adoption is permitted. The adoption is not expected to have a material effect on the Company’s financial position, cash flows or net income.

Leases

In accordance with the FASB’s update to its new lease accounting standard, the Company will adopt the new guidance as of the January 1, 2019 effective date with no change to comparative periods. See Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements included in the Company's 2017 Form 10-K Annual Report for more information on the future adoption of the new lease accounting standard. We do not expect a material impact to the consolidated financial statements; however, it is expected that assets and liabilities will increase based on the present value of remaining lease payments for leases in place at the adoption date.

Reserve for Future Policy Benefits

The FASB issued new guidance on accounting for long-duration insurance contracts. The Company’s long-duration insurance contracts include paid-up life insurance and whole-life insurance policies resulting from conversion from group life policies and run-off structured settlement and terminal funding agreement liabilities. Under existing guidance, a reserve for future policy benefits is calculated as the present value of future benefits and related expenses less the present value of any future premiums using assumptions “locked in” at the time the policies were issued, including discount rate, lapse rate, mortality, and expense assumptions. Under existing guidance, assumptions are only updated if there is an expected premium deficiency. The new guidance will require that underlying cash flow assumptions (such as for lapse rate, mortality and expenses) be reviewed and updated at least annually in the same quarter each year. The new guidance also requires that the discount rate assumption be updated each quarter and be based on an upper-medium grade (low-credit-risk) fixed-income investment yield. The change in the reserve estimate as a result of updating cash flow assumptions will be recognized in net income. The change in the reserve estimate as a result of updating the discount rate assumption will be recognized in other comprehensive income. Because reserves will be based on updated assumptions and no longer locked in at contract inception, there will no longer be a test for premium deficiency. The new guidance will be effective January 1, 2021, and will be applied to balances in place as of the earliest period presented. Early adoption is permitted. The Company has not yet determined the method or timing for adoption or estimated the effect on the Company’s financial statements.

Fair Value of Financial Instruments, Policy

The Company carries certain financial assets and liabilities at estimated fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants. Our fair value framework includes a hierarchy that gives the highest priority to the use of quoted prices in active markets, followed by the use of market observable inputs, followed by the use of unobservable inputs. The fair value hierarchy levels are as follows:

Level 1 Fair values based primarily on unadjusted quoted prices for identical assets or liabilities, in active markets that the Company has the ability to access at the measurement date.

Level 2 Fair values primarily based on observable inputs, other than quoted prices included in Level 1, or based on prices for similar assets and liabilities.

Level 3 Fair values derived when one or more of the significant inputs are unobservable (including assumptions about risk). With little or no observable market, the determination of fair values uses considerable judgment and represents the Company’s best estimate of an amount that could be realized in a market exchange for the asset or liability. Also included are securities that are traded within illiquid markets and/or priced by independent brokers.

The Company will classify the financial asset or liability by level based upon the lowest level input that is significant to the determination of the fair value. In most cases, both observable inputs (e.g., changes in interest rates) and unobservable inputs (e.g., changes in risk assumptions) are used to determine fair values that the Company has classified within Level 3.

Valuation Techniques

The Company generally determines fair values using valuation techniques that use prices, rates, and other relevant information evident from market transactions involving identical or similar instruments. Valuation techniques also include, where appropriate, estimates of future cash flows that are converted into a single discounted amount using current market expectations. The Company uses a "waterfall" approach comprised of the following pricing sources and techniques, which are listed in priority order:

• Quoted prices, unadjusted, for identical assets or liabilities in active markets, which are classified as Level 1.

• Prices from third-party pricing services, which primarily utilize a combination of techniques. These services utilize recently reported trades of identical, similar, or benchmark securities making adjustments for market observable inputs available through the reporting date. If there are no recently reported trades, they may use a discounted cash flow technique to develop a price using expected cash flows based upon the anticipated future performance of the underlying collateral discounted at an estimated market rate. Both techniques develop prices that consider the time value of future cash flows and provide a margin for risk, including liquidity and credit risk. Most prices provided by third-party pricing services are classified as Level 2 because the inputs used in pricing the securities are observable. However, some securities that are less liquid or trade less actively are classified as Level 3. Additionally, certain long-dated securities, such as municipal securities and bank loans, include benchmark interest rate or credit spread assumptions that are not observable in the marketplace and are thus classified as Level 3.

• Internal matrix pricing, which is a valuation process internally developed for private placement securities for which the Company is unable to obtain a price from a third-party pricing service. Internal pricing matrices determine credit spreads that, when combined with risk-free rates, are applied to contractual cash flows to develop a price. The Company develops credit spreads using market based data for public securities adjusted for credit spread differentials between public and private securities, which are obtained from a survey of multiple private placement brokers. The market-based reference credit spread considers the issuer’s financial strength and term to maturity, using an independent public security index and trade information, while the credit spread differential considers the non-public nature of the security. Securities priced using internal matrix pricing are classified as Level 2 because the inputs are observable or can be corroborated with observable data.

• Independent broker quotes, which are typically non-binding, use inputs that can be difficult to corroborate with observable market based data. Brokers may use present value techniques using assumptions specific to the security types, or they may use recent transactions of similar securities. Due to the lack of transparency in the process that brokers use to develop prices, valuations that are based on independent broker quotes are classified as Level 3.

The fair value of derivative instruments is determined primarily using a discounted cash flow model or option model technique and incorporate counterparty credit risk. In some cases, quoted market prices for exchange-traded and OTC-cleared derivatives may be used and in other cases independent broker quotes may be used. The pricing valuation models primarily use inputs that are observable in the market or can be corroborated by observable market data. The valuation of certain derivatives may include significant inputs that are unobservable, such as volatility levels, and reflect the Company’s view of what other market participants would use when pricing such instruments.

Valuation Controls

The fair value process for investments is monitored by the Valuation Committee, which is a cross-functional group of senior management within the Company that meets at least quarterly. The purpose of the committee is to oversee the pricing policy and procedures, as well as to approve changes to valuation methodologies and pricing sources. Controls and procedures used to assess third-party pricing services are reviewed by the Valuation Committee, including the results of annual due-diligence reviews.

There are also two working groups under the Valuation Committee: a Securities Fair Value Working Group (“Securities Working Group”) and a Derivatives Fair Value Working Group ("Derivatives Working Group"). The working groups, which include various investment, operations, accounting and risk management professionals, meet monthly to review market data trends, pricing and trading statistics and results, and any proposed pricing methodology changes.

The Securities Working Group reviews prices received from third parties to ensure that the prices represent a reasonable estimate of the fair value. The group considers trading volume, new issuance activity, market trends, new regulatory rulings and other factors to determine whether the market activity is significantly different than normal activity in an active market. A dedicated pricing unit follows up with trading and investment sector professionals and challenges prices of third-party pricing services when the estimated assumptions used differ from what the unit believes a market participant would use. If the available evidence indicates that pricing from third-party pricing services or broker quotes is based upon transactions that are stale or not from trades made in an orderly market, the Company places little, if any, weight on the third party service’s transaction price and will estimate fair value using an internal process, such as a pricing matrix.

The Derivatives Working Group reviews the inputs, assumptions and methodologies used to ensure that the prices represent a reasonable estimate of the fair value. A dedicated pricing team works directly with investment sector professionals to investigate the impacts of changes in the market environment on prices or valuations of derivatives. New models and any changes to current models are required to have detailed documentation and are validated to a second source. The model validation documentation and results of validation are presented to the Valuation Committee for approval.

The Company conducts other monitoring controls around securities and derivatives pricing including, but not limited to, the following:

• Review of daily price changes over specific thresholds and new trade comparison to third-party pricing services.

• Daily comparison of OTC derivative market valuations to counterparty valuations.

• Review of weekly price changes compared to published bond prices of a corporate bond index.

• Monthly reviews of price changes over thresholds, stale prices, missing prices, and zero prices.

• Monthly validation of prices to a second source for securities in most sectors and for certain derivatives.

In addition, the Company’s enterprise-wide Operational Risk Management function, led by the Chief Risk Officer, is responsible for model risk management and provides an independent review of the suitability and reliability of model inputs, as well as an analysis of significant changes to current models.

Valuation Inputs

Quoted prices for identical assets in active markets are considered Level 1 and consist of on-the-run U.S. Treasuries, money market funds, exchange-traded equity securities, open-ended mutual funds, short-term investments, and exchange traded futures and option contracts.

Valuation Inputs Used in Levels 2 and 3 Measurements for Securities and Derivatives
Level 2 Primary Observable Inputs		Level 3 Primary Unobservable Inputs
Fixed Maturity Investments
Structured securities (includes ABS, CDOs, CMBS and RMBS)
	• Benchmark yields and spreads • Monthly payment information • Collateral performance, which varies by vintage year and includes delinquency rates, loss severity rates and refinancing assumptions • Credit default swap indices Other inputs for ABS and RMBS: • Estimate of future principal prepayments, derived from the characteristics of the underlying structure • Prepayment speeds previously experienced at the interest rate levels projected for the collateral		• Independent broker quotes • Credit spreads beyond observable curve • Interest rates beyond observable curve Other inputs for less liquid securities or those that trade less actively, including subprime RMBS: • Estimated cash flows • Credit spreads, which include illiquidity premium • Constant prepayment rates • Constant default rates • Loss severity
Corporates
	• Benchmark yields and spreads • Reported trades, bids, offers of the same or similar securities • Issuer spreads and credit default swap curves Other inputs for investment grade privately placed securities that utilize internal matrix pricing: • Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature		• Independent broker quotes • Credit spreads beyond observable curve • Interest rates beyond observable curve Other inputs for below investment grade privately placed securities: • Independent broker quotes • Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature
U.S Treasuries, Municipals, and Foreign government/government agencies
	• Benchmark yields and spreads • Issuer credit default swap curves • Political events in emerging market economies • Municipal Securities Rulemaking Board reported trades and material event notices • Issuer financial statements		• Credit spreads beyond observable curve • Interest rates beyond observable curve
Equity Securities
	• Quoted prices in markets that are not active		• For privately traded equity securities, internal discounted cash flow models utilizing earnings multiples or other cash flow assumptions that are not observable
Short Term Investments
	• Benchmark yields and spreads • Reported trades, bids, offers • Issuer spreads and credit default swap curves • Material event notices and new issue money market rates		Not applicable
Derivatives
Credit derivatives
	• Swap yield curve • Credit default swap curves		Not applicable
Equity derivatives
	• Equity index levels • Swap yield curve		• Independent broker quotes • Equity volatility
Foreign exchange derivatives
	• Swap yield curve • Currency spot and forward rates • Cross currency basis curves		Not applicable
Interest rate derivatives
	• Swap yield curve		• Independent broker quotes • Interest rate volatility

Derivatives

The Company utilizes a variety of OTC, OTC-cleared and exchange traded derivative instruments as a part of its overall risk management strategy as well as to enter into replication transactions. Derivative instruments are used to manage risk associated with interest rate, equity market, credit spread, issuer default, price, and currency exchange rate risk or volatility. Replication transactions are used as an economical means to synthetically replicate the characteristics and performance of assets that are permissible investments under the Company’s investment policies.

Derivative-Strategies that Qualify for Hedge Accounting

Strategies that Qualify for Hedge Accounting

Some of the Company's derivatives satisfy hedge accounting requirements as outlined in Note 1 - Basis of Presentation and Significant Accounting Policies of Notes to Consolidated Financial Statements, included in The Hartford’s 2017 Form 10-K Annual Report. Typically, these hedging instruments include interest rate swaps and, to a lesser extent, foreign currency swaps where the terms or expected cash flows of the hedged item closely match the terms of the swap. The interest rate swaps are typically used to manage interest rate duration of certain fixed maturity securities. The hedge strategies by hedge accounting designation include:

Cash Flow Hedges

Interest rate swaps are predominantly used to manage portfolio duration and better match cash receipts from assets with cash disbursements required to fund liabilities. These derivatives primarily convert interest receipts on floating-rate fixed maturity securities to fixed rates. The Company has also entered into interest rate swaps to convert the variable interest payments on the 3 month Libor + 2.125% junior subordinated debt to fixed interest payments. For further information, see the Junior Subordinated Debentures section within Note 13 - Debt of Notes to the Consolidated Financial Statements, included in The Hartford's 2017 Form 10-K Annual Report.

Foreign currency swaps are used to convert foreign currency-denominated cash flows related to certain investment receipts to U.S. dollars in order to reduce cash flow fluctuations due to changes in currency rates.

The Company also previously entered into forward starting swap agreements to hedge the interest rate exposure related to the future purchase of fixed-rate securities, primarily to hedge interest rate risk inherent in the assumptions used to price certain group benefits liabilities.

Non-qualifying Strategies

Derivative relationships that do not qualify for hedge accounting (“non-qualifying strategies”) primarily include hedging and replication strategies that utilize credit default swaps. In addition, hedges of interest rate, foreign currency and equity risk of certain fixed maturities and equities do not qualify for hedge accounting.

Commitments and Contingencies, Policy [Policy Text Block]

Management evaluates each contingent matter separately. A loss is recorded if probable and reasonably estimable. Management establishes liabilities for these contingencies at its “best estimate,” or, if no one number within the range of possible losses is more probable than any other, the Company records an estimated liability at the low end of the range of losses.

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Basis of Presentation and Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Revenue from non-insurance contracts with customers

Revenue from Non-Insurance Contracts with Customers

		Three months ended September 30,				Nine months ended September 30,
	Revenue Line Item	2018		2017		2018		2017
Commercial Lines
Installment billing fees	Fee income	$	9	$	9	$	26	$	28
Personal Lines
Installment billing fees	Fee income	10		11		30		33
Insurance servicing revenues	Other revenues	24		24		66		66
Group Benefits
Administrative services	Fee income	43		19		131		57
Mutual Funds
Advisor, distribution and other management fees	Fee income	245		229		722		660
Other fees	Fee income	21		22		63		75
Corporate
Investment management and other fees	Fee income	15		1		21		2
Transition service revenues	Other revenues	6		—		8		—
Total revenues subject to updated guidance		$	373	$	315	$	1,067	$	921

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Business Acquisitions (Tables)

9 Months Ended

Sep. 30, 2018

Business Combinations [Abstract]

Disposal Groups, Including Discontinued Operations [Table Text Block]

Reconciliation of the Major Line Items Constituting Pretax Profit (Loss) of Discontinued Operations

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Revenues
Earned premiums	$	—		$	27		$	39		$	97
Fee income and other	—			217			382			665
Net investment income	—			326			519			964
Net realized capital gains (losses)	4			(29		)	(68		)	(53		)
Total revenues	4			541			872			1,673
Benefits, losses and expenses
Benefits, losses and loss adjustment expenses	—			356			535			1,036
Amortization of DAC	—			15			58			58
Insurance operating costs and other expenses [1]	(5		)	93			157			275
Total benefits, losses and expenses	(5		)	464			750			1,369
Income before income taxes	9			77			122			304
Income tax expense (benefit)	(7		)	(12		)	2			28
Income from operations of discontinued operations, net of tax	16			89			120			276
Net realized capital gain (loss) on disposal, net of tax	(11		)	—			202			—
Income from discontinued operations, net of tax	$	5		$	89		$	322		$	276

[1]Corporate allocated overhead has been included in continuing operations.

Major Classes of Assets and Liabilities Transferred to the Buyer in Connection with the Sale

	Carrying Value as of Closing			Carrying Value as of 12/31/2017
Assets
Cash and investments	$	27,058		$	30,135
Reinsurance recoverables	20,718			20,785
Loss accrual [1]	(3,044		)	(3,257		)
Other assets	2,907			1,439
Separate account assets	110,773			115,834
Total assets held for sale	158,412			164,936
Liabilities
Reserve for future policy benefits and unpaid loss and loss adjustment expenses	$	14,308		$	14,482
Other policyholder funds and benefits payable	28,680			29,228
Long-term debt	142			142
Other liabilities	2,222			2,756
Separate account liabilities	110,773			115,834
Total liabilities held for sale	$	156,125		$	162,442

[1] Represents the estimated accrued loss on sale of the Company's life and annuity run-off business.

Cash Flows from Discontinued Operations

	Nine Months Ended September 30,
	2018			2017
Net cash provided by operating activities from discontinued operations	$	603		$	612
Net cash provided by investing activities from discontinued operations	$	463		$	266
Net cash used in financing activities from discontinued operations [1]	$	(737	)	$	(595	)
Cash paid for interest	$	—		$	2

[1] Excludes return of capital to parent of $619 and $598 for the nine months ended September 30, 2018 and 2017, respectively.

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

Fair Value of Assets Acquired and Liabilities Assumed at the Acquisition Date

	Preliminary Value as of November 1, 2017 (as previously reported as of December 31, 2017)		Measurement Period Adjustments			As Adjusted Value as of November 1, 2017
Assets
Cash and invested assets [1]	$	3,360	$	45		$	3,405
Premiums receivable	96		7			103
Deferred income taxes, net	56		13			69
Other intangible assets	629		—			629
Property and equipment	68		—			68
Reinsurance recoverables	—		31			31
Other assets	16		(16		)	—
Total Assets Acquired	4,225		80			4,305
Liabilities
Unpaid losses and loss adjustment expenses	2,833		71			2,904
Reserve for future policy benefits payable	346		1			347
Other policyholder funds and benefits payable	245		1			246
Unearned premiums	3		1			4
Other liabilities	69		6			75
Total Liabilities Assumed	3,496		80			3,576
Net identifiable assets acquired	729		—			729
Goodwill [2]	723		—			723
Net Assets Acquired	$	1,452	$	—		$	1,452

[1] Includes $45 of cash received from Aetna in October 2018 in settlement of the final balance sheet and reported as a receivable in other assets in the Condensed Consolidated Balance Sheet as of September 30, 2018.

[2] Approximately $610 is deductible for income tax purposes.

Business Acquisition, Pro Forma Information

Pro Forma Results

	Three months ended September 30, 2017 [1]		Nine months ended September 30, 2017 [1]
Total Revenue	$	4,777	$	14,309
Net Income	$	249	$	619

[1]Pro forma adjustments include the revenue and earnings of the Aetna U.S. group life and disability business as well as amortization of identifiable intangible assets acquired and the fair value adjustment to acquired insurance reserves. Pro forma adjustments do not include retrospective adjustments to defer and amortize acquisition costs as would be recorded under the Company’s accounting policy.

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Earnings (Loss) Per Common Share (Tables)

9 Months Ended

Sep. 30, 2018

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings per Common Share

Computation of Basic and Diluted Earnings per Common Share
	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions, except for per share data)	2018		2017		2018		2017
Earnings
Income from continuing operations, net of tax	$	427	$	145	$	1,289	$	296
Income from discontinued operations, net of tax	5		89		322		276
Net income	$	432	$	234	$	1,611	$	572
Shares
Weighted average common shares outstanding, basic	358.6		360.2		358.1		365.9
Dilutive effect of stock compensation plans	3.6		4.5		4.0		4.1
Dilutive effect of warrants	1.9		2.3		2.0		2.6
Weighted average common shares outstanding and dilutive potential common shares	364.1		367.0		364.1		372.6
Net income per common share
Basic
Income from continuing operations, net of tax	$	1.19	$	0.40	$	3.60	$	0.81
Income from discontinued operations, net of tax	$	0.01	$	0.25	$	0.90	$	0.75
Net income per common share	$	1.20	$	0.65	$	4.50	$	1.56
Diluted
Income from continuing operations, net of tax	$	1.17	$	0.40	$	3.54	$	0.79
Income from discontinued operations, net of tax	$	0.02	$	0.24	$	0.88	$	0.75
Net income per common share	$	1.19	$	0.64	$	4.42	$	1.54

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

Reconciliation of Net Income from Segments to Consolidated

Net Income

	Three Months Ended September 30,					Nine Months Ended September 30,
	2018			2017		2018		2017
Commercial Lines	$	289		$	90	$	959	$	579
Personal Lines	51			8		146		65
Property & Casualty Other Operations	9			18		31		62
Group Benefits	77			71		227		185
Mutual Funds	41			26		112		73
Corporate	(35		)	21		136		(392		)
Net income	$	432		$	234	$	1,611	$	572

Reconciliation of Revenue from Segments to Consolidated

Revenues

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Earned premiums and fee income
Commercial Lines
Workers’ compensation	$	845	$	828	$	2,495	$	2,461
Liability	170		150		480		450
Package business	343		325		1,013		965
Automobile	157		155		454		477
Professional liability	65		63		190		183
Bond	60		59		179		172
Property	154		152		456		451
Total Commercial Lines	1,794		1,732		5,267		5,159
Personal Lines
Automobile	598		653		1,809		1,975
Homeowners	261		279		785		843
Total Personal Lines [1]	859		932		2,594		2,818
Group Benefits
Group disability	684		386		2,051		1,146
Group life	652		383		1,968		1,176
Other	60		53		179		159
Total Group Benefits	1,396		822		4,198		2,481
Mutual Funds
Mutual fund and Exchange-Traded Products ("ETP") [2]	242		225		710		657
Talcott Resolution life and annuity separate accounts [3]	25		26		76		78
Total Mutual Funds	267		251		786		735
Corporate	15		1		21		2
Total earned premiums and fee income	4,331		3,738		12,866		11,195
Net investment income	444		404		1,323		1,209
Net realized capital gains	38		26		60		105
Other revenues	29		24		73		66
Total revenues	$	4,842	$	4,192	$	14,322	$	12,575

[1] For the three months endedSeptember 30, 2018 and 2017, AARP members accounted for earned premiums of $758 and $801, respectively. For the nine months endedSeptember 30, 2018 and 2017, AARP members accounted for earned premiums of $2.3 billion and $2.4 billion, respectively.

[2] Excludes distribution costs of $48 and $140 for the three and nine months ended September 30,2017, respectively, that were previously netted against fee income and are now presented gross in insurance operating costs and other expenses.

[3] Relates to Talcott Resolution life and annuity business sold in May, 2018 that is still managed by the Company's Mutual Funds segment.

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of September 30, 2018
	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a recurring basis
Fixed maturities, AFS
Asset-backed-securities ("ABS")	$	1,191		$	—	$	1,137		$	54
Collateralized loan obligations ("CLOs")	1,326			—		1,030			296
Commercial mortgage-backed securities ("CMBS")	3,657			—		3,635			22
Corporate	13,492			—		12,941			551
Foreign government/government agencies	952			—		949			3
Municipal	10,602			—		10,593			9
Residential mortgage-backed securities ("RMBS")	3,118			—		2,184			934
U.S. Treasuries	1,828			695		1,133			—
Total fixed maturities	36,166			695		33,602			1,869
Fixed maturities, FVO	24			—		24			—
Equity securities, at fair value	1,035			905		52			78
Derivative assets
Credit derivatives	14			—		14			—
Equity derivatives	1			—		—			1
Foreign exchange derivatives	(1		)	—		(1		)	—
Total derivative assets [1]	14			—		13			1
Short-term investments	3,540			980		2,560			—
Total assets accounted for at fair value on a recurring basis	$	40,779		$	2,580	$	36,251		$	1,948
Liabilities accounted for at fair value on a recurring basis
Derivative liabilities
Foreign exchange derivatives	(10		)	—		(10		)	—
Interest rate derivatives	(51		)	—		(53		)	2
Total derivative liabilities [2]	(61		)	—		(63		)	2
Contingent consideration [3]	(32		)	—		—			(32		)
Total liabilities accounted for at fair value on a recurring basis	$	(93	)	$	—	$	(63	)	$	(30	)

Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of December 31, 2017
	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a recurring basis
Fixed maturities, AFS
Asset-backed-securities ("ABS")	$	1,126		$	—	$	1,107		$	19
Collateralized loan obligations ("CLOs")	1,260			—		1,165			95
Commercial mortgage-backed securities ("CMBS")	3,336			—		3,267			69
Corporate	12,804			—		12,284			520
Foreign government/government agencies	1,110			—		1,108			2
Municipal	12,485			—		12,468			17
Residential mortgage-backed securities ("RMBS")	3,044			—		1,814			1,230
U.S. Treasuries	1,799			333		1,466			—
Total fixed maturities	36,964			333		34,679			1,952
Fixed maturities, FVO	41			—		41			—
Equity securities, AFS	1,012			887		49			76
Derivative assets
Credit derivatives	9			—		9			—
Equity derivatives	1			—		—			1
Foreign exchange derivatives	(1		)	—		(1		)	—
Interest rate derivatives	1			—		1			—
Total derivative assets [1]	10			—		9			1
Short-term investments	2,270			1,098		1,172			—
Total assets accounted for at fair value on a recurring basis	$	40,297		$	2,318	$	35,950		$	2,029
Liabilities accounted for at fair value on a recurring basis
Derivative liabilities
Credit derivatives	(3		)	—		(3		)	—
Foreign exchange derivatives	(13		)	—		(13		)	—
Interest rate derivatives	(84		)	—		(85		)	1
Total derivative liabilities [2]	(100		)	—		(101		)	1
Contingent consideration [3]	(29		)	—		—			(29		)
Total liabilities accounted for at fair value on a recurring basis	$	(129	)	$	—	$	(101	)	$	(28	)

[1] Includes derivative instruments in a net positive fair value position after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law. See footnote 2 to this table for derivative liabilities.

[2] Includes derivative instruments in a net negative fair value position (derivative liability) after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law.

[3] For additional information see the Contingent Consideration section below.

Fair Value Inputs, Assets, Quantitative Information

Significant Unobservable Inputs for Level 3 - Derivatives
	Fair Value		Predominant Valuation  Technique	Significant Unobservable Input	Minimum		Maximum		Impact of  Increase in Input on  Fair Value [1]
As of September 30, 2018
Interest rate swaptions [2]	$	2	Option model	Interest rate volatility	3	%	3	%	Increase
Equity Options	1		Option model	Equity volatility	19	%	26	%	Increase
As of December 31, 2017
Interest rate swaptions [2]	$	1	Option model	Interest rate volatility	2	%	2	%	Increase
Equity options	$	1	Option model	Equity volatility	18	%	22	%	Increase

[1] Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. Changes are based on long positions, unless otherwise noted. Changes in fair value will be inversely impacted for short positions.

[2] The swaptions presented are purchased options that have the right to enter into a pay-fixed swap.

Significant Unobservable Inputs for Level 3 - Securities
Assets accounted for at fair value on a recurring basis	Fair Value		Predominant Valuation Technique	Significant Unobservable Input	Minimum	Maximum	Weighted Average [1]	Impact of Increase in Input on Fair Value [2]
As of September 30, 2018
CMBS [3]	$	12	Discounted cash flows	Spread (encompasses prepayment, default risk and loss severity)	9 bps	1,040 bps	177 bps	Decrease
Corporate [4]	$	289	Discounted cash flows	Spread	100 bps	761 bps	201 bps	Decrease
Municipal	$	9	Discounted cash flows	Spread	160 bps	160 bps	160 bps	Decrease
RMBS [3]	$	913	Discounted cash flows	Spread	7 bps	288 bps	67 bps	Decrease
				Constant prepayment rate	1%	15%	6%	Decrease [5]
				Constant default rate	1%	8%	3%	Decrease
				Loss severity	—%	100%	60%	Decrease
As of December 31, 2017
CMBS [3]	$	56	Discounted cash flows	Spread (encompasses prepayment, default risk and loss severity)	9 bps	1,040 bps	400 bps	Decrease
Corporate [4]	$	251	Discounted cash flows	Spread	103 bps	1,000 bps	242 bps	Decrease
Municipal	$	17	Discounted cash flows	Spread	192 bps	250 bps	219 bps	Decrease
RMBS [3]	$	1,215	Discounted cash flows	Spread	24 bps	351 bps	74 bps	Decrease
				Constant prepayment rate	1%	25%	6%	Decrease [5]
				Constant default rate	—%	9%	4%	Decrease
				Loss severity	—%	100%	66%	Decrease

[1] The weighted average is determined based on the fair value of the securities.

[2] Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table.

[3] Excludes securities for which the Company bases fair value on broker quotations.

[4] Excludes securities for which the Company bases fair value on broker quotations; however, included are broker priced lower-rated private placement securities for which the Company receives spread and yield information to corroborate the fair value.

[5] Decrease for above market rate coupons and increase for below market rate coupons.

Valuation Inputs Used in Levels 2 and 3 Measurements for Securities and Derivatives
Level 2 Primary Observable Inputs		Level 3 Primary Unobservable Inputs
Fixed Maturity Investments
Structured securities (includes ABS, CDOs, CMBS and RMBS)
	• Benchmark yields and spreads • Monthly payment information • Collateral performance, which varies by vintage year and includes delinquency rates, loss severity rates and refinancing assumptions • Credit default swap indices Other inputs for ABS and RMBS: • Estimate of future principal prepayments, derived from the characteristics of the underlying structure • Prepayment speeds previously experienced at the interest rate levels projected for the collateral		• Independent broker quotes • Credit spreads beyond observable curve • Interest rates beyond observable curve Other inputs for less liquid securities or those that trade less actively, including subprime RMBS: • Estimated cash flows • Credit spreads, which include illiquidity premium • Constant prepayment rates • Constant default rates • Loss severity
Corporates
	• Benchmark yields and spreads • Reported trades, bids, offers of the same or similar securities • Issuer spreads and credit default swap curves Other inputs for investment grade privately placed securities that utilize internal matrix pricing: • Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature		• Independent broker quotes • Credit spreads beyond observable curve • Interest rates beyond observable curve Other inputs for below investment grade privately placed securities: • Independent broker quotes • Credit spreads for public securities of similar quality, maturity, and sector, adjusted for non-public nature
U.S Treasuries, Municipals, and Foreign government/government agencies
	• Benchmark yields and spreads • Issuer credit default swap curves • Political events in emerging market economies • Municipal Securities Rulemaking Board reported trades and material event notices • Issuer financial statements		• Credit spreads beyond observable curve • Interest rates beyond observable curve
Equity Securities
	• Quoted prices in markets that are not active		• For privately traded equity securities, internal discounted cash flow models utilizing earnings multiples or other cash flow assumptions that are not observable
Short Term Investments
	• Benchmark yields and spreads • Reported trades, bids, offers • Issuer spreads and credit default swap curves • Material event notices and new issue money market rates		Not applicable
Derivatives
Credit derivatives
	• Swap yield curve • Credit default swap curves		Not applicable
Equity derivatives
	• Equity index levels • Swap yield curve		• Independent broker quotes • Equity volatility
Foreign exchange derivatives
	• Swap yield curve • Currency spot and forward rates • Cross currency basis curves		Not applicable
Interest rate derivatives
	• Swap yield curve		• Independent broker quotes • Interest rate volatility

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Three Months Ended September 30, 2018
					Total realized/unrealized gains (losses)
		Fair value as of June 30, 2018			Included in net income [1]			Included in OCI [2]			Purchases		Settlements			Sales			Transfers into Level 3 [3]		Transfers out of Level 3 [3]			Fair value as of September 30, 2018
Assets
Fixed Maturities, AFS
	ABS	$	57		$	—		$	—		$	39	$	(2	)	$	—		$	9	$	(49	)	$	54
	CLOs	159			—			—			211		—			—			—		(74		)	296
	CMBS	28			(1		)	1			—		(1		)	—			—		(5		)	22
	Corporate	559			—			(2		)	12		(2		)	(12		)	—		(4		)	551
	Foreign Govt./Govt. Agencies	3			—			—			—		—			—			—		—			3
	Municipal	9			—			—			—		—			—			—		—			9
	RMBS	1,137			—			(3		)	—		(77		)	(26		)	—		(97		)	934
Total Fixed Maturities, AFS		1,952			(1		)	(4		)	262		(82		)	(38		)	9		(229		)	1,869
Equity Securities, at fair value		66			—			—			12		—			—			—		—			78
Derivatives, net [4]
	Equity	1			—			—			—		—			—			—		—			1
	Interest rate	2			—			—			—		—			—			—		—			2
Total Derivatives, net [4]		3			—			—			—		—			—			—		—			3
Total Assets		$	2,021		$	(1	)	$	(4	)	$	274	$	(82	)	$	(38	)	$	9	$	(229	)	$	1,950
Liabilities
Contingent Consideration [5]		(31		)	(1		)	—			—		—			—			—		—			(32		)
Total Liabilities		$	(31	)	$	(1	)	$	—		$	—	$	—		$	—		$	—	$	—		$	(32	)

Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Nine Months Ended September 30, 2018
					Total realized/unrealized gains (losses)
		Fair value as of January 1, 2018			Included in net income [1]			Included in OCI [2]			Purchases		Settlements			Sales			Transfers into Level 3 [3]		Transfers out of Level 3 [3]			Fair value as of September 30, 2018
Assets
Fixed Maturities, AFS
	ABS	$	19		$	—		$	—		$	89	$	(5	)	$	—		$	12	$	(61	)	$	54
	CLOs	95			—			—			309		—			(4		)	—		(104		)	296
	CMBS	69			(1		)	—			25		(4		)	(8		)	—		(59		)	22
	Corporate	520			1			(10		)	143		(34		)	(43		)	15		(41		)	551
	Foreign Govt./Govt. Agencies	2			—			—			1		—			—			—		—			3
	Municipal	17			—			(1		)	—		—			—			—		(7		)	9
	RMBS	1,230			—			(10		)	170		(251		)	(27		)	—		(178		)	934
Total Fixed Maturities, AFS		1,952			—			(21		)	737		(294		)	(82		)	27		(450		)	1,869
Equity Securities, at fair value		76			28			1			13		—			(40		)	—		—			78
Derivatives, net [4]
	Equity	1			1			—			1		—			(2		)	—		—			1
	Interest rate	1			1			—			—		—			—			—		—			2
Total Derivatives, net [4]		2			2			—			1		—			(2		)	—		—			3
Total Assets		$	2,030		$	30		$	(20	)	$	751	$	(294	)	$	(124	)	$	27	$	(450	)	$	1,950
Liabilities
Contingent Consideration [5]		(29		)	(3		)	—			—		—			—			—		—			(32		)
Total Liabilities		$	(29	)	$	(3	)	$	—		$	—	$	—		$	—		$	—	$	—		$	(32	)

Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Three Months Ended September 30, 2017
					Total realized/unrealized gains (losses)
		Fair value as of June 30, 2017			Included in net income [1]			Included in OCI [2]			Purchases		Settlements			Sales			Transfers into Level 3 [3]		Transfers out of Level 3 [3]			Fair value as of September 30, 2017
Assets
Fixed Maturities, AFS
	ABS	$	63		$	—		$	—		$	—	$	(3	)	$	(6	)	$	4	$	(32	)	$	26
	CLOs	203			—			—			9		—			—			—		(116		)	96
	CMBS	65			(1		)	—			—		(3		)	—			—		—			61
	Corporate	528			—			5			36		(1		)	(24		)	19		(30		)	533
	Foreign Govt./Govt. Agencies	22			—			1			7		—			—			—		(5		)	25
	Municipal	16			—			—			—		—			—			—		—			16
	RMBS	1,272			—			17			39		(72		)	—			—		(1		)	1,255
Total Fixed Maturities, AFS		2,169			(1		)	23			91		(79		)	(30		)	23		(184		)	2,012
Equity Securities, AFS		55			—			(2		)	20		—			—			—		—			73
Derivatives, net [4]
	Equity	2			—			—			—		—			—			—		—			2
	Interest rate	3			(1		)	—			—		—			—			—		—			2
Total Derivatives, net [4]		5			(1		)	—			—		—			—			—		—			4
Total Assets		$	2,229		$	(2	)	$	21		$	111	$	(79	)	$	(30	)	$	23	$	(184	)	$	2,089
Liabilities
Contingent Consideration [5]		(27		)	(1		)	—			—		—			—			—		—			(28		)
Total Liabilities		$	(27	)	$	(1	)	$	—		$	—	$	—		$	—		$	—	$	—		$	(28	)

Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Nine Months Ended September 30, 2017
					Total realized/unrealized gains (losses)
		Fair value as of January 1, 2017			Included in net income [1]			Included in OCI [2]			Purchases		Settlements			Sales			Transfers into Level 3 [3]		Transfers out of Level 3 [3]			Fair value as of September 30, 2017
Assets
Fixed Maturities, AFS
	ABS	$	45		$	—		$	—		$	56	$	(6	)	$	(6	)	$	27	$	(90	)	$	26
	CLOs	154			—			—			195		(101		)	—			—		(152		)	96
	CMBS	59			(2		)	—			42		(7		)	—			—		(31		)	61
	Corporate	514			1			16			169		(42		)	(141		)	54		(38		)	533
	Foreign Govt./Govt. Agencies	47			—			3			12		—			(2		)	—		(35		)	25
	Municipal	46			4			1			—		—			(35		)	—		—			16
	RMBS	1,261			—			39			156		(193		)	(7		)	—		(1		)	1,255
Total Fixed Maturities, AFS		2,126			3			59			630		(349		)	(191		)	81		(347		)	2,012
Fixed Maturities, FVO		11			—			—			4		(2		)	(13		)	—		—			—
Equity Securities, AFS		55			—			(4		)	22		—			—			—		—			73
Derivatives, net [4]
	Equity	—			(3		)	—			5		—			—			—		—			2
	Interest rate	9			(7		)	—			—		—			—			—		—			2
	Other contracts	1			(1		)	—			—		—			—			—		—			—
Total Derivatives, net [4]		10			(11		)	—			5		—			—			—		—			4
Total Assets		$	2,202		$	(8	)	$	55		$	661	$	(351	)	$	(204	)	$	81	$	(347	)	$	2,089
Liabilities
Contingent Consideration [5]		(25		)	(3		)	—			—		—			—			—		—			(28		)
Total Liabilities		$	(25	)	$	(3	)	$	—		$	—	$	—		$	—		$	—	$	—		$	(28	)

[1] Amounts in these columns are generally reported in net realized capital gains (losses). All amounts are before income taxes.

[2] All amounts are before income taxes.

[3] Transfers in and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs.

[4] Derivative instruments are reported in this table on a net basis for asset (liability) positions and reported in the Condensed Consolidated Balance Sheets in other investments and other liabilities.

[5] For additional information, see Note 2 - Business Acquisitions of Notes to Consolidated Financial Statements included in the Company's 2017 form 10-K Annual Report for discussion of the contingent consideration in connection with the acquisition of Lattice. Includes both market and non-market impacts in deriving realized and unrealized gains (losses).

Changes in Unrealized Gains (Losses) Included in Net Income for Financial Instruments Classified as Level 3 Still Held at End of Period
		Three months ended September 30,						Nine months ended September 30,
		2018 [1] [2]			2017 [1] [2]			2018 [1] [2]			2017 [1] [2]
Assets
Fixed Maturities, AFS
	CMBS	$	—		$	—		$	—		$	(1	)
Total Fixed Maturities, AFS		—			—			—			(1		)
Derivatives, net
	Equity	(1		)	—			(1		)	(2		)
	Interest rate	—			(1		)	—			(6		)
Total Derivatives, net		(1		)	(1		)	(1		)	(8		)
Total Assets		$	(1	)	$	(1	)	$	(1	)	$	(9	)
Liabilities
Contingent Consideration [3]		(1		)	(1		)	(3		)	(3		)
Total Liabilities		$	(1	)	$	(1	)	$	(3	)	$	(3	)

[1] All amounts in these rows are reported in net realized capital gains (losses). All amounts are before income taxes.

[2] Amounts presented are for Level 3 only and therefore may not agree to other disclosures included herein.

[3] For additional information, see Note 2 - Business Acquisitions of Notes to Consolidated Financial Statements included in the Company's 2017 form 10-K Annual Report for discussion of the contingent consideration in connection with the acquisition of Lattice.

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

Financial Assets and Liabilities Not Carried at Fair Value
	Fair Value Hierarchy Level	Carrying Amount		Fair Value
September 30, 2018
Assets
Mortgage loans	Level 3	$	3,559	$	3,518
Liabilities
Other policyholder funds and benefits payable	Level 3	$	784	$	785
Senior notes [1]	Level 2	$	3,587	$	3,940
Junior subordinated debentures [1]	Level 2	$	1,089	$	1,142
December 31, 2017
Assets
Mortgage loans	Level 3	$	3,175	$	3,220
Liabilities
Other policyholder funds and benefits payable	Level 3	$	825	$	827
Senior notes [1]	Level 2	$	3,415	$	4,054
Junior subordinated debentures [1]	Level 2	$	1,583	$	1,699

[1] Included in long-term debt in the Consolidated Balance Sheets, except for current maturities, which are included in short-term debt.

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Investments (Tables)

9 Months Ended

Sep. 30, 2018

Investments [Abstract]

Net Realized Capital Gains (Losses)

Net Realized Capital Gains
	Three Months Ended September 30,						Nine Months Ended September 30,
(Before tax)	2018			2017			2018			2017
Gross gains on sales	$	26		$	46		$	91		$	184
Gross losses on sales	(41		)	(16		)	(129		)	(84		)
Equity securities [1]	46			—			88			—
Net OTTI losses recognized in earnings	(1		)	(1		)	(1		)	(4		)
Transactional foreign currency revaluation	—			—			1			14
Non-qualifying foreign currency derivatives	1			—			2			(14		)
Other, net [2]	7			(3		)	8			9
Net realized capital gains	$	38		$	26		$	60		$	105

[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 gains (losses) on non-qualifying derivatives, excluding foreign currency derivatives, of $8 and $(1), respectively, for the three months ended September 30, 2018 and 2017. For the nine months ended September 30, 2018 and 2017, the non-qualifying derivatives, excluding foreign currency derivatives, were $6 and $7, respectively.

Impairments

Impairments in Earnings by Type
	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Credit impairments	$	1	$	—	$	1	$	2
Intent-to-sell impairments	—		—		—		—
Impairments on equity securities	—		1		—		2
Total impairments	$	1	$	1	$	1	$	4

Cumulative Credit Impairments
	Three Months Ended September 30,						Nine Months Ended September 30,
(Before tax)	2018			2017			2018			2017
Balance as of beginning of period	$	(20	)	$	(94	)	$	(25	)	$	(110	)
Additions for credit impairments recognized on [1]:
Securities not previously impaired	—			—			—			—
Securities previously impaired	(1		)	—			(1		)	(2		)
Reductions for credit impairments previously recognized on:
Securities that matured or were sold during the period	1			—			6			8
Securities due to an increase in expected cash flows	—			—			—			10
Balance as of end of period	$	(20	)	$	(94	)	$	(20	)	$	(94	)

[1] These additions are included in the net OTTI losses recognized in earnings in the Condensed Consolidated Statements of Operations.

Schedule of Available-for-sale Securities

Available-for-Sale Securities

AFS Securities by Type
	September 30, 2018												December 31, 2017
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Non-Credit OTTI [1]			Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Non-Credit OTTI [1]
ABS	$	1,191	$	3	$	(3	)	$	1,191	$	—		$	1,119	$	9	$	(2	)	$	1,126	$	—
CLOs	1,328		1		(3		)	1,326		—			1,257		3		—			1,260		—
CMBS	3,718		25		(86		)	3,657		(5		)	3,304		58		(26		)	3,336		(5		)
Corporate	13,640		176		(324		)	13,492		—			12,370		490		(56		)	12,804		—
Foreign govt./govt. agencies	961		11		(20		)	952		—			1,071		43		(4		)	1,110		—
Municipal	10,276		402		(76		)	10,602		—			11,743		754		(12		)	12,485		—
RMBS	3,126		44		(52		)	3,118		—			2,985		63		(4		)	3,044		—
U.S. Treasuries	1,854		17		(43		)	1,828		—			1,763		46		(10		)	1,799		—
Total fixed maturities, AFS	36,094		679		(607		)	36,166		(5		)	35,612		1,466		(114		)	36,964		(5		)
Equity securities, AFS [2]													907		121		(16		)	1,012		—
Total AFS securities	$	36,094	$	679	$	(607	)	$	36,166	$	(5	)	$	36,519	$	1,587	$	(130	)	$	37,976	$	(5	)

[1] Represents the amount of cumulative non-credit OTTI losses recognized in OCI on securities that also had credit impairments. These losses are included in gross unrealized losses in AOCI as of September 30, 2018 and December 31, 2017.

[2] Effective January 1, 2018, with the adoption of new accounting standards for financial instruments, equity securities, AFS were reclassified to equity securities at fair value and are excluded from the table above as of September 30, 2018

Investments by Contractual Maturity Year

Fixed maturities, AFS, by Contractual Maturity Year
	September 30, 2018				December 31, 2017
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
One year or less	$	1,033	$	1,037	$	1,507	$	1,513
Over one year through five years	6,233		6,242		5,007		5,119
Over five years through ten years	6,543		6,469		6,505		6,700
Over ten years	12,922		13,126		13,928		14,866
Subtotal	26,731		26,874		26,947		28,198
Mortgage-backed and asset-backed securities	9,363		9,292		8,665		8,766
Total fixed maturities, AFS	$	36,094	$	36,166	$	35,612	$	36,964

Unrealized Loss on Investments

Unrealized Loss Aging for AFS Securities by Type and Length of Time as of September 30, 2018
	Less Than 12 Months							12 Months or More							Total
	Amortized Cost		Fair Value		Unrealized Losses			Amortized Cost		Fair Value		Unrealized Losses			Amortized Cost		Fair Value		Unrealized Losses
ABS	$	668	$	666	$	(2	)	$	74	$	73	$	(1	)	$	742	$	739	$	(3	)
CLOs	929		926		(3		)	10		10		—			939		936		(3		)
CMBS	1,995		1,952		(43		)	740		697		(43		)	2,735		2,649		(86		)
Corporate	7,586		7,364		(222		)	1,412		1,310		(102		)	8,998		8,674		(324		)
Foreign govt./govt. agencies	552		537		(15		)	95		90		(5		)	647		627		(20		)
Municipal	2,206		2,151		(55		)	266		245		(21		)	2,472		2,396		(76		)
RMBS	1,795		1,751		(44		)	184		176		(8		)	1,979		1,927		(52		)
U.S. Treasuries	1,024		1,001		(23		)	402		382		(20		)	1,426		1,383		(43		)
Total fixed maturities, AFS in an unrealized loss position	$	16,755	$	16,348	$	(407	)	$	3,183	$	2,983	$	(200	)	$	19,938	$	19,331	$	(607	)

Unrealized Loss Aging for AFS Securities by Type and Length of Time as of December 31, 2017
	Less Than 12 Months							12 Months or More							Total
	Amortized Cost		Fair Value		Unrealized Losses			Amortized Cost		Fair Value		Unrealized Losses			Amortized Cost		Fair Value		Unrealized Losses
ABS	$	461	$	460	$	(1	)	$	30	$	29	$	(1	)	$	491	$	489	$	(2	)
CLOs	359		359		—			1		1		—			360		360		—
CMBS	1,178		1,167		(11		)	243		228		(15		)	1,421		1,395		(26		)
Corporate	2,322		2,302		(20		)	1,064		1,028		(36		)	3,386		3,330		(56		)
Foreign govt./govt. agencies	244		242		(2		)	51		49		(2		)	295		291		(4		)
Municipal	511		507		(4		)	236		228		(8		)	747		735		(12		)
RMBS	889		887		(2		)	137		135		(2		)	1,026		1,022		(4		)
U.S. Treasuries	658		652		(6		)	254		250		(4		)	912		902		(10		)
Total fixed maturities, AFS	6,622		6,576		(46		)	2,016		1,948		(68		)	8,638		8,524		(114		)
Equity securities, AFS [1]	176		163		(13		)	24		21		(3		)	200		184		(16		)
Total securities in an unrealized loss position	$	6,798	$	6,739	$	(59	)	$	2,040	$	1,969	$	(71	)	$	8,838	$	8,708	$	(130	)

[1]Effective January 1, 2018, with the adoption of new accounting guidance for financial instruments, equity securities, AFS were reclassified to equity securities at fair value and are excluded from the table above as of September 30, 2018.

Securities Lending and Repurchase Agreements [Table Text Block]

Securities Lending and Repurchase Agreements
	September 30, 2018		December 31, 2017
	Fair Value		Fair Value
Securities Lending Transactions:
Gross amount of securities on loan	$	697	$	922
Gross amount of associated liability for collateral received [1]	$	714	$	945
Repurchase agreements:
Gross amount of recognized liabilities for repurchase agreements	$	167	$	174
Gross amount of collateral pledged related to repurchase agreements [2]	$	168	$	176
Gross amount of recognized receivables for reverse repurchase agreements	$	36	$	—

[1] Cash collateral received is reinvested in fixed maturities, AFS and short term investments and is included in the Condensed Consolidated Balance Sheets. Amount includes additional securities collateral received of $2 and $0 million which are excluded from the Company's Condensed Consolidated Balance Sheets as of September 30, 2018 and December 31, 2017, respectively.

[2] Collateral pledged is included within fixed maturities, AFS and short term investments in the Company's Condensed Consolidated Balance Sheets.

Schedule of Valuation Allowance for Impairment of Recognized Servicing Assets

Valuation Allowance Activity
	2018			2017
Balance, as of January 1	$	(1	)	$	—
Reversals/(Additions)	—			(1		)
Deductions	—			1
Balance, as of September 30	$	(1	)	$	—

Loans Credit Quality

Mortgage Loans Credit Quality
	September 30, 2018			December 31, 2017
Loan-to-value	Carrying Value		Avg. Debt-Service Coverage Ratio	Carrying Value		Avg. Debt-Service Coverage Ratio
Greater than 80%	$	—	—	$	18	1.27x
65% - 80%	406		1.68x	265		1.95x
Less than 65%	3,153		2.60x	2,892		2.76x
Total mortgage loans	$	3,559	2.50x	$	3,175	2.69x

Mortgage Loans

Mortgage Loans by Region
	September 30, 2018				December 31, 2017
	Carrying Value		Percent of Total		Carrying Value		Percent of Total
East North Central	$	250	7.0	%	$	251	7.9	%
Middle Atlantic	271		7.6	%	272		8.6	%
Mountain	31		0.9	%	31		1.0	%
New England	290		8.2	%	293		9.2	%
Pacific	870		24.4	%	760		23.9	%
South Atlantic	713		20.0	%	710		22.4	%
West North Central	148		4.2	%	149		4.7	%
West South Central	421		11.8	%	278		8.7	%
Other [1]	565		15.9	%	431		13.6	%
Total mortgage loans	$	3,559	100.0	%	$	3,175	100.0	%

[1] Primarily represents loans collateralized by multiple properties in various regions.

Mortgage Loans by Property Type
	September 30, 2018				December 31, 2017
	Carrying Value		Percent of Total		Carrying Value		Percent of Total
Commercial
Industrial	$	1,018	28.6	%	$	817	25.7	%
Multifamily	1,083		30.4	%	1,006		31.7	%
Office	760		21.4	%	751		23.7	%
Retail	373		10.5	%	367		11.5	%
Single Family	82		2.3	%	—		—	%
Other	243		6.8	%	234		7.4	%
Total mortgage loans	$	3,559	100.0	%	$	3,175	100.0	%

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Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Balance Sheet Presentation

Derivative Balance Sheet Presentation
	Net Derivatives										Asset Derivatives [1]				Liability Derivatives [1]
	Notional Amount				Fair Value						Fair Value				Fair Value
Hedge Designation/ Derivative Type	Sep. 30, 2018		Dec. 31, 2017		Sep. 30, 2018			Dec. 31, 2017			Sep. 30, 2018		Dec. 31, 2017		Sep. 30, 2018			Dec. 31, 2017
Cash flow hedges
Interest rate swaps	$	2,080	$	2,190	$	—		$	—		$	—	$	1	$	—		$	(1	)
Foreign currency swaps	153		153		(11		)	(13		)	1		—		(12		)	(13		)
Total cash flow hedges	2,233		2,343		(11		)	(13		)	1		1		(12		)	(14		)
Non-qualifying strategies
Interest rate contracts
Interest rate swaps and futures	8,111		7,986		(51		)	(83		)	3		7		(54		)	(90		)
Foreign exchange contracts
Foreign currency swaps and forwards	318		213		—			(1		)	1		—		(1		)	(1		)
Credit contracts
Credit derivatives that purchase credit protection	8		61		—			1			—		2		—			(1		)
Credit derivatives that assume credit risk [2]	923		823		14			3			15		3		(1		)	—
Credit derivatives in offsetting positions	46		1,046		—			2			6		11		(6		)	(9		)
Equity contracts
Equity index swaps and options	125		258		1			1			1		1		—			—
Total non-qualifying strategies	9,531		10,387		(36		)	(77		)	26		24		(62		)	(101		)
Total cash flow hedges and non-qualifying strategies	$	11,764	$	12,730	$	(47	)	$	(90	)	$	27	$	25	$	(74	)	$	(115	)
Balance Sheet Location
Fixed maturities, available-for-sale	$	153	$	153	$	—		$	—		$	—	$	—	$	—		$	—
Other investments	9,377		9,957		14			10			19		16		(5		)	(6		)
Other liabilities	2,234		2,620		(61		)	(100		)	8		9		(69		)	(109		)
Total derivatives	$	11,764	$	12,730	$	(47	)	$	(90	)	$	27	$	25	$	(74	)	$	(115	)

[1] Certain prior year amounts have been restated to conform to the current year presentation for OTC-cleared derivatives.

[2] The derivative instruments related to this strategy are held for other investment purposes.

Offsetting Liabilities

Offsetting Derivative Assets and Liabilities
	(i)			(ii)			(iii) = (i) - (ii)						(iv)				(v) = (iii) - (iv)
							Net Amounts Presented in the Statement of Financial Position							Collateral Disallowed for Offset in the Statement of Financial Position
	Gross Amounts of Recognized Assets (Liabilities) [1]			Gross Amounts Offset in the Statement of Financial Position			Derivative Assets [2] (Liabilities) [3]			Accrued Interest and Cash Collateral (Received) [4] Pledged [3]				Financial Collateral (Received) Pledged [5]			Net Amount
As of September 30, 2018
Other investments	$	27		$	23		$	14		$	(10	)		$	2		$	2
Other liabilities	$	(74	)	$	(5	)	$	(61	)	$	(8	)		$	(61	)	$	(8	)
As of December 31, 2017
Other investments	$	25		$	22		$	10		$	(7	)		$	1		$	2
Other liabilities	$	(115	)	$	(10	)	$	(100	)	$	(5	)		$	(96	)	$	(9	)

[1] Certain prior year amounts have been restated to conform to the current year presentation for OTC-cleared derivatives.

[2] Included in other investments in the Company's Condensed Consolidated Balance Sheets.

[3] Included in other liabilities in the Company's Condensed Consolidated Balance Sheets and is limited to the net derivative payable associated with each counterparty.

[4] Included in other investments in the Company's Condensed Consolidated Balance Sheets and is limited to the net derivative receivable associated with each counterparty.

[5] Excludes collateral associated with exchange-traded derivative instruments.

Derivatives in Cash Flow Hedging Relationships

Derivatives in Cash Flow Hedging Relationships
	Gain (Loss) Recognized in OCI on Derivative (Effective Portion)
	Three Months Ended September 30,					Nine Months Ended September 30,
	2018		2017			2018			2017
Interest rate swaps	$	—	$	2		$	(16	)	$	16
Foreign currency swaps	—		(4		)	1			(8		)
Total	$	—	$	(2	)	$	(15	)	$	8
	Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
	Three Months Ended September 30,					Nine Months Ended September 30,
	2018		2017			2018			2017
Interest rate swaps
Net realized capital gains	$	—	$	—		$	1		$	5
Net investment income	7		8			24			27
Total	$	7	$	8		$	25		$	32

Non-Qualifying Strategies Recognized within Net Realized Capital Gains (Losses)

Non-Qualifying Strategies Recognized within Net Realized Capital Gains (Losses)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Foreign exchange contracts
Foreign currency swaps and forwards	$	1		$	—		$	2		$	(14	)
Other non-qualifying derivatives
Interest rate contracts
Interest rate swaps, swaptions, and futures	1			(4		)	7			(6		)
Credit contracts
Credit derivatives that purchase credit protection	—			8			—			26
Credit derivatives that assume credit risk	8			(2		)	—			(9		)
Equity contracts
Equity index swaps and options	(1		)	(3		)	(1		)	(3		)
Other
Contingent capital facility put option	—			—			—			(1		)
Total other non-qualifying derivatives	8			(1		)	6			7
Total [1]	$	9		$	(1	)	$	8		$	(7	)

[1] Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 5 - Fair Value Measurements

Credit Derivatives by Type

Credit Risk Assumed Derivatives by Type
							Underlying Referenced Credit Obligation(s) [1]
	Notional Amount [2]		Fair Value			Weighted Average Years to Maturity	Type	Average Credit Rating	Offsetting Notional Amount [3]		Offsetting Fair Value [3]
As of September 30, 2018
Single name credit default swaps
Investment grade risk exposure	$	170	$	4		5 years	Corporate Credit/ Foreign Gov.	A-	$	—	$	—
Basket credit default swaps [4]
Investment grade risk exposure	743		10			6 years	Corporate Credit	BBB+	—		—
Investment grade risk exposure	12		—			5 years	CMBS Credit	A-	2		—
Below investment grade risk exposure	21		(6		)	Less than 1 year	CMBS Credit	CCC	21		6
Total [5]	$	946	$	8					$	23	$	6
As of December 31, 2017
Single name credit default swaps
Investment grade risk exposure	$	130	$	3		5 years	Corporate Credit/ Foreign Gov.	A-	$	—	$	—
Below investment grade risk exposure	9		—			Less than 1 year	Corporate Credit	B	9		—
Basket credit default swaps [4]
Investment grade risk exposure	1,137		2			3 years	Corporate Credit	BBB+	454		(2		)
Below investment grade risk exposure	27		2			3 years	Corporate Credit	B+	27		—
Investment grade risk exposure	13		(1		)	5 years	CMBS Credit	A	3		—
Below investment grade risk exposure	30		(6		)	Less than 1 year	CMBS Credit	CCC	30		7
Total [5]	$	1,346	$	—					$	523	$	5

[1] The average credit ratings are based on availability and are generally the midpoint of the available ratings among Moody’s, S&P, Fitch and Morningstar. If no rating is available from a rating agency, then an internally developed rating is used.

[2] Notional amount is equal to the maximum potential future loss amount. These derivatives are governed by agreements and applicable law, which include collateral posting requirements. There is no additional specific collateral related to these contracts or recourse provisions included in the contracts to offset losses.

[3] The Company has entered into offsetting credit default swaps to terminate certain existing credit default swaps, thereby offsetting the future changes in value of, or losses paid related to, the original swap.

[4] Comprised of swaps of standard market indices of diversified portfolios of corporate and CMBS issuers referenced through credit default swaps. These swaps are subsequently valued based upon the observable standard market index.

[5] Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 5 - Fair Value Measurements

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Reserve for Unpaid Losses and Loss Adjustment Expenses (Tables)

9 Months Ended

Sep. 30, 2018

Liability for Unpaid Claims and Claims Adjustment Expense, Activity in Liability [Abstract]

Liabilities for Unpaid Losses and Loss Adjustment Expenses

Unfavorable (Favorable) Prior Accident Year Development

	For the nine months ended September 30,
	2018			2017
Workers’ compensation	$	(97	)	$	(29	)
Workers’ compensation discount accretion	30			21
General liability	32			10
Package business	(16		)	(22		)
Commercial property	(10		)	(5		)
Professional liability	(12		)	—
Bond	—			10
Automobile liability - Commercial Lines	(15		)	20
Automobile liability - Personal Lines	(10		)	—
Homeowners	(20		)	—
Net asbestos reserves	—			—
Net environmental reserves	—			—
Catastrophes	(47		)	(12		)
Uncollectible reinsurance	22			—
Other reserve re-estimates, net	4			8
Total prior accident year development	$	(139	)	$	1

Property and Casualty Insurance Products

Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses

	For the nine months ended September 30,
	2018			2017
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	$	23,775		$	22,545
Reinsurance and other recoverables	3,957			3,488
Beginning liabilities for unpaid losses and loss adjustment expenses, net	19,818			19,057
Provision for unpaid losses and loss adjustment expenses
Current accident year	5,151			5,587
Prior accident year development	(139		)	1
Total provision for unpaid losses and loss adjustment expenses	5,012			5,588
Less payments
Current accident year	1,647			1,770
Prior accident years	3,166			3,143
Total payments	4,813			4,913
Ending liabilities for unpaid losses and loss adjustment expenses, net	20,017			19,732
Reinsurance and other recoverables	3,780			3,508
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	23,797		$	23,240

Group Life, Disability and Accident Products

Rollforward of Liabilities for Unpaid Losses and Loss Adjustment Expenses

	For the nine months ended September 30,
	2018			2017
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	$	8,512		$	5,772
Reinsurance recoverables	209			208
Beginning liabilities for unpaid losses and loss adjustment expenses, net	8,303			5,564
Add: Aetna U.S. group life and disability business acquisition [1]	42			—
Provision for unpaid losses and loss adjustment expenses
Current incurral year	3,423			1,960
Prior year's discount accretion	175			148
Prior incurral year development [2]	(284		)	(162		)
Total provision for unpaid losses and loss adjustment expenses [3]	3,314			1,946
Less: payments
Current incurral year	1,659			917
Prior incurral years	1,741			1,118
Total payments	3,400			2,035
Ending liabilities for unpaid losses and loss adjustment expenses, net	8,259			5,475
Reinsurance recoverables	241			208
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$	8,500		$	5,683

[1] Represents an adjustment to Aetna U.S. group life and disability business reserves, net of reinsurance as of the acquisition date, upon finalization of the opening balance sheet.

[2] Prior incurral year development represents the change in estimated ultimate incurred losses and loss adjustment expenses for prior incurral years on a discounted basis.

[3] Includes unallocated loss adjustment expenses of $131, and $74 for the nine months endedSeptember 30, 2018 and 2017, respectively, that are recorded in insurance operating costs and other expenses in the Condensed Consolidated Statements of Operations.

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Reserves for Future Policy Benefits (Tables)

9 Months Ended

Sep. 30, 2018

Insurance Loss Reserves [Abstract]

Changes in Reserves for Future Policy Benefits

Changes in Reserves for Future Policy Benefits[1]
Liability balance as of January 1, 2018	$	713
Incurred	10
Paid	(25		)
Change in unrealized investment gains and losses	(42		)
Liability balance as of September 30, 2018	$	656
Reinsurance recoverable asset, as of January 1, 2018	$	26
Incurred	10
Paid	(1		)
Reinsurance recoverable asset, as of September 30, 2018	$	35

Liability balance as of January 1, 2017	$	322
Incurred	27
Paid	(24		)
Change in unrealized investment gains and losses	(9		)
Liability balance as of September 30, 2017	$	316
Reinsurance recoverable asset, as of January 1, 2017	$	28
Incurred	(6		)
Paid	—
Reinsurance recoverable asset, as of September 30, 2017	$	22

[1]Reserves for future policy benefits includes paid-up life insurance and whole-life policies resulting from conversion from group life policies included within the Group Benefits segment and reserves for run-off structured settlement and terminal funding agreement liabilities which are in the Corporate category.

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Income Taxes (Tables)

9 Months Ended

Sep. 30, 2018

Income Tax Disclosure [Abstract]

Income Tax Rate Reconciliation

Income Tax Rate Reconciliation
	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Tax provision at U.S. federal statutory rate [1]	$	112		$	64		$	333		$	105
Tax-exempt interest	(16		)	(31		)	(50		)	(91		)
Executive compensation	1			—			8			—
Stock-based compensation	(3		)	(4		)	(5		)	(12		)
Tax Reform	11			—			13			—
Other	(2		)	7			(2		)	3
Provision for income taxes	$	103		$	36		$	297		$	5

[1]Due to the passage of Tax Reform on December 22, 2017, current and prior period federal statutory rates are reflected at 21% and 35% respectively.

Roll-forward of Unrecognized Tax Benefits

Rollforward of Unrecognized Tax Benefits
	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Balance, beginning of period	$	9	$	12	$	9	$	12
Gross increases - tax positions in prior period	5		—		5		—
Gross decreases - tax positions in prior period	—		—		—		—
Balance, end of period	$	14	$	12	$	14	$	12

Future Tax Benefits

Future Tax Benefits
	As of
	September 30, 2018				Expiration
	Carryover amount		Expected tax benefit, gross		Dates			Amount
Net operating loss carryover - U.S.	$	2,814	$	591	2023	-	2036	$	2,814
Net operating loss carryover - foreign	$	4	$	—	No expiration			$	4
Foreign tax credit carryover	$	5	$	5	2023	-	2024	$	5
General business credit carryover	$	4	$	4	2031	-	2037	$	4

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Accumulated Other Comprehensive Income Loss (Tables)

9 Months Ended

Sep. 30, 2018

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Changes in AOCI, net of tax

Changes in AOCI, Net of Tax for the Three Months Ended September 30, 2018
	Changes in
	Net Unrealized Gain on Securities			OTTI Losses in OCI			Net Gain on Cash Flow Hedging Instruments			Foreign Currency Translation Adjustments		Pension and Other Postretirement Plan Adjustments			AOCI, net of tax
Beginning balance	$	211		$	(3	)	$	(12	)	$	33	$	(1,582	)	$	(1,353	)
OCI before reclassifications	(183		)	(1		)	1			1		1			(181		)
Amounts reclassified from AOCI	12			—			(6		)	—		9			15
OCI, net of tax	(171		)	(1		)	(5		)	1		10			(166		)
Ending balance	$	40		$	(4	)	$	(17	)	$	34	$	(1,572	)	$	(1,519	)

Changes in AOCI, Net of Tax for the Nine Months Ended September 30, 2018
	Changes in
	Net Unrealized Gain on Securities			OTTI Losses in OCI			Net Gain on Cash Flow Hedging Instruments			Foreign Currency Translation Adjustments			Pension and Other Postretirement Plan Adjustments			AOCI, net of tax
Beginning balance	$	1,931		$	(3	)	$	18		$	34		$	(1,317	)	$	663
Cumulative effect of accounting changes, net of tax [1]	273			—			2			4			(284		)	(5		)
Adjusted balance, beginning of period	2,204			(3		)	20			38			(1,601		)	658
OCI before reclassifications [2]	(2,213		)	—			(12		)	(4		)	—			(2,229		)
Amounts reclassified from AOCI	49			(1		)	(25		)	—			29			52
OCI, net of tax	(2,164		)	(1		)	(37		)	(4		)	29			(2,177		)
Ending balance	$	40		$	(4	)	$	(17	)	$	34		$	(1,572	)	$	(1,519	)

[1]Includes reclassification to retained earnings of $88 of stranded tax effects and $93 of net unrealized gains. Refer to Note 1 - Basis of Presentation and Significant Accounting Policies for further information.

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

Changes in AOCI, Net of Tax for the Three Months Ended September 30, 2017
	Changes in
	Net Unrealized Gain on Securities			OTTI Losses in OCI			Net Gain on Cash Flow Hedging Instruments			Foreign Currency Translation Adjustments		Pension and Other Postretirement Plan Adjustments			AOCI, net of tax
Beginning balance	$	1,755		$	(3	)	$	57		$	13	$	(1,328	)	$	494
OCI before reclassifications	119			(1		)	(2		)	14		1			131
Amounts reclassified from AOCI	(34		)	—			(12		)	—		6			(40		)
OCI, net of tax	85			(1		)	(14		)	14		7			91
Ending balance	$	1,840		$	(4	)	$	43		$	27	$	(1,321	)	$	585

Changes in AOCI, Net of Tax for the Nine Months Ended September 30, 2017
	Changes in
	Net Unrealized Gain on Securities			OTTI Losses in OCI			Net Gain on Cash Flow Hedging Instruments			Foreign Currency Translation Adjustments		Pension and Other Postretirement Plan Adjustments			AOCI, net of tax
Beginning balance	$	1,276		$	(3	)	$	76		$	6	$	(1,692	)	$	(337	)
OCI before reclassifications	683			(1		)	7			21		(144		)	566
Amounts reclassified from AOCI	(119		)	—			(40		)	—		515			356
OCI, net of tax	564			(1		)	(33		)	21		371			922
Ending balance	$	1,840		$	(4	)	$	43		$	27	$	(1,321	)	$	585

Reclassifications from AOCI

Reclassifications from AOCI
	Three Months Ended September 30, 2017			Nine Months Ended September 30, 2017			Affected Line Item in the Condensed Consolidated Statement of Operations
Net Unrealized Gain on Securities
Available-for-sale securities	$	32		$	102		Net realized capital gains
	32			102			Total before tax
	11			36			Income tax expense
	13			53			Income from discontinued operations, net of tax
	$	34		$	119		Net income
Net Gains on Cash Flow Hedging Instruments
Interest rate swaps	$	—		$	5		Net realized capital gains
Interest rate swaps	8			27			Net investment income
	8			32			Total before tax
	3			11			Income tax expense
	7			19			Income from discontinued operations, net of tax
	$	12		$	40		Net income
Pension and Other Postretirement Plan Adjustments
Amortization of prior service credit	$	2		$	—		Insurance operating costs and other expenses
Amortization of actuarial loss	(12		)	(45		)	Insurance operating costs and other expenses
Settlement loss	—			(747		)	Insurance operating costs and other expenses
	(10		)	(792		)	Total before tax
	(4		)	(277		)	Income tax expense
	$	(6	)	$	(515	)	Net income
Total amounts reclassified from AOCI	$	40		$	(356	)	Net income

Reclassifications from AOCI
	Three Months Ended September 30, 2018			Nine Months Ended September 30, 2018			Affected Line Item in the Condensed Consolidated Statement of Operations
Net Unrealized Gain on Securities
Available-for-sale securities	$	(15	)	$	(59	)	Net realized capital gains
	(15		)	(59		)	Total before tax
	(3		)	(12		)	Income tax expense
	—			(2		)	Income from discontinued operations, net of tax
	$	(12	)	$	(49	)	Net income
OTTI Losses in OCI
Other than temporary impairments	$	—		$	—		Net realized capital gains
	—			—			Total before tax
	—			—			Income tax expense
	$	—		$	1		Income from discontinued operations, net of tax
	$	—		$	1		Net income
Net Gains on Cash Flow Hedging Instruments
Interest rate swaps	$	—		$	1		Net realized capital gains
Interest rate swaps	7			24			Net investment income
	7			25			Total before tax
	1			5			Income tax expense
	$	—		$	5		Income from discontinued operations, net of tax
	$	6		$	25		Net income
Pension and Other Postretirement Plan Adjustments
Amortization of prior service credit	$	2		$	5		Insurance operating costs and other expenses
Amortization of actuarial loss	(14		)	(42		)	Insurance operating costs and other expenses
	(12		)	(37		)	Total before tax
	(3		)	(8		)	Income tax expense
	$	(9	)	$	(29	)	Net income
Total amounts reclassified from AOCI	$	(15	)	$	(52	)	Net income

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Employee Benefit Plans (Tables)

9 Months Ended

Sep. 30, 2018

Retirement Benefits [Abstract]

Schedule of Net Benefit Costs

Net Periodic Benefit
	Pension Benefits						Other  Postretirement  Benefits
	Three Months Ended September 30,						Three Months Ended September 30,
	2018			2017			2018			2017
Service cost	$	1		$	1		$	—		$	—
Interest cost	36			36			1			2
Expected return on plan assets	(57		)	(55		)	(2		)	(2		)
Amortization of prior service credit	—			—			(2		)	(2		)
Amortization of actuarial loss	12			11			2			1
Settlements	—			—			—			—
Net periodic benefit	$	(8	)	$	(7	)	$	(1	)	$	(1	)

Net Periodic Cost (Benefit)
	Pension Benefits						Other  Postretirement  Benefits
	Nine months ended September 30,						Nine months ended September 30,
	2018			2017			2018			2017
Service cost	$	3		$	3		$	—		$	6
Interest cost	107			134			4			(6		)
Expected return on plan assets	(172		)	(214		)	(5		)	(5		)
Amortization of prior service credit	—			—			(5		)	—
Amortization of actuarial loss	37			41			5			4
Settlements	—			750			—			—
Net periodic cost (benefit)	$	(25	)	$	714		$	(1	)	$	(1	)

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Business Dispositions and Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2018

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations

Reconciliation of the Major Line Items Constituting Pretax Profit (Loss) of Discontinued Operations

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Revenues
Earned premiums	$	—		$	27		$	39		$	97
Fee income and other	—			217			382			665
Net investment income	—			326			519			964
Net realized capital gains (losses)	4			(29		)	(68		)	(53		)
Total revenues	4			541			872			1,673
Benefits, losses and expenses
Benefits, losses and loss adjustment expenses	—			356			535			1,036
Amortization of DAC	—			15			58			58
Insurance operating costs and other expenses [1]	(5		)	93			157			275
Total benefits, losses and expenses	(5		)	464			750			1,369
Income before income taxes	9			77			122			304
Income tax expense (benefit)	(7		)	(12		)	2			28
Income from operations of discontinued operations, net of tax	16			89			120			276
Net realized capital gain (loss) on disposal, net of tax	(11		)	—			202			—
Income from discontinued operations, net of tax	$	5		$	89		$	322		$	276

[1]Corporate allocated overhead has been included in continuing operations.

Major Classes of Assets and Liabilities Transferred to the Buyer in Connection with the Sale

	Carrying Value as of Closing			Carrying Value as of 12/31/2017
Assets
Cash and investments	$	27,058		$	30,135
Reinsurance recoverables	20,718			20,785
Loss accrual [1]	(3,044		)	(3,257		)
Other assets	2,907			1,439
Separate account assets	110,773			115,834
Total assets held for sale	158,412			164,936
Liabilities
Reserve for future policy benefits and unpaid loss and loss adjustment expenses	$	14,308		$	14,482
Other policyholder funds and benefits payable	28,680			29,228
Long-term debt	142			142
Other liabilities	2,222			2,756
Separate account liabilities	110,773			115,834
Total liabilities held for sale	$	156,125		$	162,442

[1] Represents the estimated accrued loss on sale of the Company's life and annuity run-off business.

Cash Flows from Discontinued Operations

	Nine Months Ended September 30,
	2018			2017
Net cash provided by operating activities from discontinued operations	$	603		$	612
Net cash provided by investing activities from discontinued operations	$	463		$	266
Net cash used in financing activities from discontinued operations [1]	$	(737	)	$	(595	)
Cash paid for interest	$	—		$	2

[1] Excludes return of capital to parent of $619 and $598 for the nine months ended September 30, 2018 and 2017, respectively.

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Basis of Presentation and Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Millions				3 Months Ended			9 Months Ended
	Aug. 22, 2018	May 31, 2018	Jan. 01, 2018	Sep. 30, 2018	Mar. 31, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Fee income				$ 344		$ 291	$ 994	$ 855
TaxCutsAndJobsActOf2017ReclassificationFromAociToRetainedEarningsTaxEffect			$ (88)
Equity securities, AFS				0			0		$ 1,012
Other revenues				29		24	73	66
Total revenues subject to updated guidance				373		315	1,067	921
Operating Expense [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Distribution Costs						48		140
Net Unrealized Gain on Securities
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of accounting change net of income taxes									273
Net Unrealized Gain on Securities | Equity Securities [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Equity securities, AFS			1,000
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
TaxCutsAndJobsActOf2017ReclassificationFromAociToRetainedEarningsTaxEffect					$ (193)
Corporate
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Fee income				15		1	21	2
Other revenues				6		0	8	0
Continuing Operations [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
TaxCutsAndJobsActOf2017ReclassificationFromAociToRetainedEarningsTaxEffect			(105)
Installment billing fees | Operating Segments | Commercial Lines
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Fee income				9		9	26	28
Installment billing fees | Operating Segments | Personal Lines
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Fee income				10		11	30	33
Insurance servicing revenues | Operating Segments | Personal Lines
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other revenues				24		24	66	66
Administrative services | Operating Segments | Group Benefits
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Fee income				43		19	131	57
Advisor, distribution and other management fees | Operating Segments | Mutual Funds
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Fee income				245		229	722	660
Other fees | Operating Segments | Mutual Funds
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Fee income				21		$ 22	63	$ 75
Maximum [Member] | Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | Other Income [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Discontinued Operation, Period of Continuing Involvement after Disposal		24 months
Equity Securities [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of accounting change net of income taxes			83
Equity securities, AFS									$ 1,012
Shadow DAC [Member] | Discontinued Operations, Held-for-sale or Disposed of by Sale [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of accounting change net of income taxes			$ 10
The Navigators Group, Inc. [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Business Acquisition, Share Price	$ 70
Business Combination, Consideration Transferred	$ 2,100

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Business Acquisitions - Additional Information (Details) - USD ($) $ in Millions		3 Months Ended	11 Months Ended
	Nov. 01, 2017	Sep. 30, 2018	Sep. 30, 2018
Business Acquisition [Line Items]
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Total Assets		$ 80	$ 80
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Total Liabilities		80	$ 80
Goodwill, Purchase Accounting Adjustments		$ 0
Aetna Group Insurance
Business Acquisition [Line Items]
Total	$ 1,452

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Business Acquisitions - Pro Forma Information (Details) - Aetna Group Insurance - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017
Business Acquisition [Line Items]
Total Revenue	$ 4,777	$ 14,309
Net Income	$ 249	$ 619

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Business Acquisitions -Fair Value of Assets Acquired and Liabilities Assumed at the Acquisition Date (Details) - USD ($) $ in Millions	3 Months Ended	11 Months Ended
	Sep. 30, 2018	Sep. 30, 2018	Oct. 01, 2018	Nov. 01, 2017
Business Acquisition [Line Items]
Cash and invested assets [1]	$ 3,405	$ 3,405	$ 45	$ 3,360
Premiums receivable	103	103		96
Deferred income taxes, net	69	69		56
Other intangible assets	629	629		629
Property and equipment	68	68		68
Reinsurance recoverables	31	31		0
Other assets	0	0		16
Total Assets Acquired	4,305	4,305		4,225
Unpaid losses and loss adjustment expenses	2,904	2,904		2,833
Reserve for future policy benefits payable	347	347		346
Other policyholder funds and benefits payable	246	246		245
Unearned premiums	4	4		3
Other liabilities	75	75		69
Total Liabilities Assumed	3,576	3,576		3,496
Net identifiable assets acquired	729	729		729
Goodwill, Fair Value Disclosure	723	723		723
Net Assets Acquired	1,452	1,452		$ 1,452
Business Acquisition, Goodwill, Expected Tax Deductible Amount	610	610
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract]
Cash and invested assets [1]	45
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Premiums Receivable	7
Deferred income taxes, net	13
Other intangible assets	0
Property and equipment	0
Reinsurance recoverables	31
Other assets	(16)
Total Assets Acquired	80	80
Unpaid losses and loss adjustment expenses	71
Reserve for future policy benefits payable	1
Other policyholder funds and benefits payable	1
Unearned premiums	1
Other liabilities	6
Total Liabilities Assumed	80	$ 80
Net identifiable assets acquired	0
Goodwill [2]	0
Net Assets Acquired	$ 0

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Earnings (Loss) Per Common Share - Computation of Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Earnings
Income from continuing operations, net of tax	$ 427	$ 145	$ 1,289	$ 296
Income from discontinued operations, net of tax	5	89	322	276
Net income	$ 432	$ 234	$ 1,611	$ 572
Shares
Weighted average common shares outstanding, basic	358.6	360.2	358.1	365.9
Dilutive effect of stock compensation plans	3.6	4.5	4.0	4.1
Dilutive effect of warrants	1.9	2.3	2.0	2.6
Weighted average common shares outstanding and dilutive potential common shares	364.1	367.0	364.1	372.6
Earnings Per Share, Basic [Abstract]
Income from continuing operations, net of tax	$ 1.19	$ 0.40	$ 3.60	$ 0.81
Income from discontinued operations, net of tax	0.01	0.25	0.90	0.75
Net income per common share	1.20	0.65	4.50	1.56
Earnings Per Share, Diluted [Abstract]
Income from continuing operations, net of tax	1.17	0.40	3.54	0.79
Income from discontinued operations, net of tax	0.02	0.24	0.88	0.75
Net income per common share	$ 1.19	$ 0.64	$ 4.42	$ 1.54

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Segment Information - Additional Information (Details)	9 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
Number of Reportable Segments	5

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Segment Information - Net Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Segment Reporting Information [Line Items]
Net income	$ 432	$ 234	$ 1,611	$ 572
Corporate
Segment Reporting Information [Line Items]
Net income	(35)	21	136	(392)
Property and Casualty, Commercial Insurance Product Line [Member]
Segment Reporting Information [Line Items]
Net income	289	90	959	579
Property and Casualty, Personal Insurance Product Line [Member]
Segment Reporting Information [Line Items]
Net income	51	8	146	65
Property & Casualty Other Operations
Segment Reporting Information [Line Items]
Net income	9	18	31	62
Group Insurance Policies [Member]
Segment Reporting Information [Line Items]
Net income	77	71	227	185
Mutual Fund [Member]
Segment Reporting Information [Line Items]
Net income	$ 41	$ 26	$ 112	$ 73

XML

Segment Information - Revenues (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Segment Reporting Information [Line Items]
Earned premiums and fee income	$ 4,331	$ 3,738	$ 12,866	$ 11,195
Net investment income	444	404	1,323	1,209
Realized Investment Gains (Losses)	38	26	60	105
Other revenues	29	24	73	66
Total revenues	4,842	4,192	14,322	12,575
Property and Casualty, Commercial Insurance Product Line [Member]
Segment Reporting Information [Line Items]
Earned premiums and fee income	1,794	1,732	5,267	5,159
Property and Casualty, Commercial Insurance Product Line [Member] | Workers’ compensation
Segment Reporting Information [Line Items]
Earned premiums and fee income	845	828	2,495	2,461
Property and Casualty, Commercial Insurance Product Line [Member] | Liability
Segment Reporting Information [Line Items]
Earned premiums and fee income	170	150	480	450
Property and Casualty, Commercial Insurance Product Line [Member] | Package business
Segment Reporting Information [Line Items]
Earned premiums and fee income	343	325	1,013	965
Property and Casualty, Commercial Insurance Product Line [Member] | Automobile
Segment Reporting Information [Line Items]
Earned premiums and fee income	157	155	454	477
Property and Casualty, Commercial Insurance Product Line [Member] | Professional liability
Segment Reporting Information [Line Items]
Earned premiums and fee income	65	63	190	183
Property and Casualty, Commercial Insurance Product Line [Member] | Bond
Segment Reporting Information [Line Items]
Earned premiums and fee income	60	59	179	172
Property and Casualty, Commercial Insurance Product Line [Member] | Property
Segment Reporting Information [Line Items]
Earned premiums and fee income	154	152	456	451
Property and Casualty, Personal Insurance Product Line [Member]
Segment Reporting Information [Line Items]
Earned premiums and fee income	859	932	2,594	2,818
Property and Casualty, Personal Insurance Product Line [Member] | AARP Members [Member]
Segment Reporting Information [Line Items]
Earned premiums and fee income	758	801	2,300	2,400
Property and Casualty, Personal Insurance Product Line [Member] | Automobile
Segment Reporting Information [Line Items]
Earned premiums and fee income	598	653	1,809	1,975
Property and Casualty, Personal Insurance Product Line [Member] | Property
Segment Reporting Information [Line Items]
Earned premiums and fee income	261	279	785	843
Group Insurance Policies [Member]
Segment Reporting Information [Line Items]
Earned premiums and fee income	1,396	822	4,198	2,481
Group Insurance Policies [Member] | Group disability
Segment Reporting Information [Line Items]
Earned premiums and fee income	684	386	2,051	1,146
Group Insurance Policies [Member] | Group life
Segment Reporting Information [Line Items]
Earned premiums and fee income	652	383	1,968	1,176
Group Insurance Policies [Member] | Other
Segment Reporting Information [Line Items]
Earned premiums and fee income	60	53	179	159
Mutual Fund [Member]
Segment Reporting Information [Line Items]
Earned premiums and fee income	267	251	786	735
Mutual Fund [Member] | Third party retail customers [Member]
Segment Reporting Information [Line Items]
Earned premiums and fee income	242	225	710	657
Mutual Fund [Member] | Talcott Resolution [Member]
Segment Reporting Information [Line Items]
Earned premiums and fee income	25	26	76	78
Corporate
Segment Reporting Information [Line Items]
Earned premiums and fee income	$ 15	1	$ 21	2
Operating Expense [Member]
Segment Reporting Information [Line Items]
Distribution Costs		$ 48		$ 140

XML

Fair Value Measurements - Fair Value by Hierarchy (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	$ 36,166	$ 36,964
Fixed maturities, FVO	24	41
Equity securities, at fair value	1,035	0
Equity securities, AFS	0	1,012
Derivative assets	14	10
Short-term investments	3,540	2,270
Total assets accounted for at fair value on a recurring basis	40,779	40,297
Liabilities accounted for at fair value on a recurring basis
Derivative liabilities	(61)	(100)
Contingent consideration	(32)	(29)
Total liabilities accounted for at fair value on a recurring basis	(93)	(129)
Credit derivatives
Assets accounted for at fair value on a recurring basis
Derivative assets	14	9
Liabilities accounted for at fair value on a recurring basis
Derivative liabilities		(3)
Equity derivatives
Assets accounted for at fair value on a recurring basis
Derivative assets	1	1
Foreign exchange derivatives
Assets accounted for at fair value on a recurring basis
Derivative assets	(1)	(1)
Liabilities accounted for at fair value on a recurring basis
Derivative liabilities	(10)	(13)
Interest rate derivatives
Assets accounted for at fair value on a recurring basis
Derivative assets		1
Liabilities accounted for at fair value on a recurring basis
Derivative liabilities	(51)	(84)
Asset-backed-securities (ABS)
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	1,191	1,126
Collateralized loan obligations (CLOs)
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	1,326	1,260
CMBS
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	3,657	3,336
Corporate
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	13,492	12,804
Foreign government/government agencies
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	952	1,110
Municipal
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	10,602	12,485
Residential mortgage-backed securities (RMBS)
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	3,118	3,044
U.S. Treasuries
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	1,828	1,799
Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	695	333
Fixed maturities, FVO	0	0
Equity securities, at fair value	905
Equity securities, AFS		887
Short-term investments	980	1,098
Total assets accounted for at fair value on a recurring basis	2,580	2,318
Liabilities accounted for at fair value on a recurring basis
Derivative liabilities	0	0
Contingent consideration	0	0
Total liabilities accounted for at fair value on a recurring basis	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Credit derivatives
Assets accounted for at fair value on a recurring basis
Derivative assets	0	0
Liabilities accounted for at fair value on a recurring basis
Derivative liabilities		0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity derivatives
Assets accounted for at fair value on a recurring basis
Derivative assets	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign exchange derivatives
Assets accounted for at fair value on a recurring basis
Derivative assets	0	0
Liabilities accounted for at fair value on a recurring basis
Derivative liabilities	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate derivatives
Assets accounted for at fair value on a recurring basis
Derivative assets		0
Liabilities accounted for at fair value on a recurring basis
Derivative liabilities	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed-securities (ABS)
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Collateralized loan obligations (CLOs)
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | CMBS
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign government/government agencies
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential mortgage-backed securities (RMBS)
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasuries
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	695	333
Significant Observable Inputs (Level 2)
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	33,602	34,679
Fixed maturities, FVO	24	41
Equity securities, at fair value	52
Equity securities, AFS		49
Derivative assets	13	9
Short-term investments	2,560	1,172
Total assets accounted for at fair value on a recurring basis	36,251	35,950
Liabilities accounted for at fair value on a recurring basis
Derivative liabilities	(63)	(101)
Contingent consideration	0	0
Total liabilities accounted for at fair value on a recurring basis	(63)	(101)
Significant Observable Inputs (Level 2) | Credit derivatives
Assets accounted for at fair value on a recurring basis
Derivative assets	14	9
Liabilities accounted for at fair value on a recurring basis
Derivative liabilities		(3)
Significant Observable Inputs (Level 2) | Equity derivatives
Assets accounted for at fair value on a recurring basis
Derivative assets	0	0
Significant Observable Inputs (Level 2) | Foreign exchange derivatives
Assets accounted for at fair value on a recurring basis
Derivative assets	(1)	(1)
Liabilities accounted for at fair value on a recurring basis
Derivative liabilities	(10)	(13)
Significant Observable Inputs (Level 2) | Interest rate derivatives
Assets accounted for at fair value on a recurring basis
Derivative assets		1
Liabilities accounted for at fair value on a recurring basis
Derivative liabilities	(53)	(85)
Significant Observable Inputs (Level 2) | Asset-backed-securities (ABS)
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	1,137	1,107
Significant Observable Inputs (Level 2) | Collateralized loan obligations (CLOs)
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	1,030	1,165
Significant Observable Inputs (Level 2) | CMBS
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	3,635	3,267
Significant Observable Inputs (Level 2) | Corporate
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	12,941	12,284
Significant Observable Inputs (Level 2) | Foreign government/government agencies
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	949	1,108
Significant Observable Inputs (Level 2) | Municipal
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	10,593	12,468
Significant Observable Inputs (Level 2) | Residential mortgage-backed securities (RMBS)
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	2,184	1,814
Significant Observable Inputs (Level 2) | U.S. Treasuries
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	1,133	1,466
Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	1,869	1,952
Fixed maturities, FVO	0	0
Equity securities, at fair value	78
Equity securities, AFS		76
Derivative assets	1	1
Short-term investments	0	0
Total assets accounted for at fair value on a recurring basis	1,948	2,029
Liabilities accounted for at fair value on a recurring basis
Derivative liabilities	2	1
Contingent consideration	(32)	(29)
Total liabilities accounted for at fair value on a recurring basis	(30)	(28)
Significant Unobservable Inputs (Level 3) | Credit derivatives
Assets accounted for at fair value on a recurring basis
Derivative assets	0	0
Liabilities accounted for at fair value on a recurring basis
Derivative liabilities		0
Significant Unobservable Inputs (Level 3) | Equity derivatives
Assets accounted for at fair value on a recurring basis
Derivative assets	1	1
Significant Unobservable Inputs (Level 3) | Foreign exchange derivatives
Assets accounted for at fair value on a recurring basis
Derivative assets	0	0
Liabilities accounted for at fair value on a recurring basis
Derivative liabilities	0	0
Significant Unobservable Inputs (Level 3) | Interest rate derivatives
Assets accounted for at fair value on a recurring basis
Derivative assets		0
Liabilities accounted for at fair value on a recurring basis
Derivative liabilities	2	1
Significant Unobservable Inputs (Level 3) | Asset-backed-securities (ABS)
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	54	19
Significant Unobservable Inputs (Level 3) | Collateralized loan obligations (CLOs)
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	296	95
Significant Unobservable Inputs (Level 3) | CMBS
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	22	69
Significant Unobservable Inputs (Level 3) | Corporate
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	551	520
Significant Unobservable Inputs (Level 3) | Foreign government/government agencies
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	3	2
Significant Unobservable Inputs (Level 3) | Municipal
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	9	17
Significant Unobservable Inputs (Level 3) | Residential mortgage-backed securities (RMBS)
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	934	1,230
Significant Unobservable Inputs (Level 3) | U.S. Treasuries
Assets accounted for at fair value on a recurring basis
Debt Securities, Available-for-sale	$ 0	$ 0

XML

Fair Value Measurements - Significant Unobservable Inputs Securities (Details) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2018 USD ($)	Dec. 31, 2017 USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Debt Securities, Available-for-sale	$ 36,166	$ 36,964
CMBS
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Debt Securities, Available-for-sale	3,657	3,336
Corporate
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Debt Securities, Available-for-sale	13,492	12,804
Municipal
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Debt Securities, Available-for-sale	10,602	12,485
RMBS
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Debt Securities, Available-for-sale	3,118	3,044
Significant Unobservable Inputs (Level 3)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Debt Securities, Available-for-sale	1,869	1,952
Significant Unobservable Inputs (Level 3) | CMBS
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Debt Securities, Available-for-sale	22	69
Significant Unobservable Inputs (Level 3) | Corporate
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Debt Securities, Available-for-sale	551	520
Significant Unobservable Inputs (Level 3) | Municipal
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Debt Securities, Available-for-sale	9	17
Significant Unobservable Inputs (Level 3) | RMBS
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Debt Securities, Available-for-sale	934	1,230
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | CMBS
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Debt Securities, Available-for-sale	$ 12	$ 56
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | CMBS | Minimum
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Servicing Asset, Measurement Input	0.09	0.09
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | CMBS | Maximum
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Servicing Asset, Measurement Input	10.40	10.40
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | CMBS | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Servicing Asset, Measurement Input	1.77	4.00
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Corporate
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Debt Securities, Available-for-sale	$ 289	$ 251
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Corporate | Minimum
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Servicing Asset, Measurement Input	1.00	1.03
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Corporate | Maximum
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Servicing Asset, Measurement Input	7.61	10.00
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Corporate | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Servicing Asset, Measurement Input	2.01	2.42
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Municipal
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Debt Securities, Available-for-sale	$ 9	$ 17
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Municipal | Minimum
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Servicing Asset, Measurement Input	1.60	1.92
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Municipal | Maximum
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Servicing Asset, Measurement Input	1.60	2.50
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Municipal | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Servicing Asset, Measurement Input	1.60	2.19
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | RMBS
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Debt Securities, Available-for-sale	$ 913	$ 1,215
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | RMBS | Minimum
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Servicing Asset, Measurement Input	0.07	0.24
Constant prepayment rate	1.00%	1.00%
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | RMBS | Maximum
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Servicing Asset, Measurement Input	2.88	3.51
Constant prepayment rate	15.00%	25.00%
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | RMBS | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Servicing Asset, Measurement Input	0.67	0.74
Constant prepayment rate	6.00%	6.00%
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Measurement Input, Default Rate [Member] | RMBS | Minimum
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Constant default rate	1.00%	0.00%
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Measurement Input, Default Rate [Member] | RMBS | Maximum
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Constant default rate	8.00%	9.00%
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Measurement Input, Default Rate [Member] | RMBS | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Constant default rate	3.00%	4.00%
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Measurement Input, Loss Severity [Member] | RMBS | Minimum
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Constant default rate	0.00%	0.00%
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Measurement Input, Loss Severity [Member] | RMBS | Maximum
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Constant default rate	100.00%	100.00%
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Measurement Input, Loss Severity [Member] | RMBS | Weighted Average [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Constant default rate	60.00%	66.00%

XML

Fair Value Measurements - Significant Unobservable Inputs Freestanding Derivatives (Details) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2018 USD ($)	Dec. 31, 2017 USD ($)
Measurement Input, Comparability Adjustment [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Servicing Asset, Measurement Input	0
Significant Unobservable Inputs (Level 3) | Interest rate swaptions [2] | Long
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Derivative Assets (Liabilities), at Fair Value, Net	$ 2	$ 1
Significant Unobservable Inputs (Level 3) | Interest rate swaptions [2] | Minimum | Long
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair Value Measurements, Unobservable Swap_Curve	3.00%	2.00%
Significant Unobservable Inputs (Level 3) | Interest rate swaptions [2] | Maximum | Long
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair Value Measurements, Unobservable Swap_Curve	3.00%	2.00%
Significant Unobservable Inputs (Level 3) | Equity Options
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Derivative Assets (Liabilities), at Fair Value, Net	$ 1	$ 1
Significant Unobservable Inputs (Level 3) | Equity Options | Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair Value Measurements, Unobservable Swap_Curve	19.00%	18.00%
Significant Unobservable Inputs (Level 3) | Equity Options | Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair Value Measurements, Unobservable Swap_Curve	26.00%	22.00%

XML

Fair Value Measurements - Transfers Between Levels & Contingent Consideration (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
	Jul. 29, 2016	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Level 2 to Level 1 Transfers			$ 0		$ 0
Contingent Consideration Commission payable		$ 32		$ 32
Contingent Consideration basis		4
Lattice
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent Consideration	$ 0
Contingent Consideration Payment Period	4 years
Lattice | Contingent Obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount Rate				16.70%
US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Level 1 to Level 2 Transfers		$ 379	$ 300	$ 1,300	$ 1,100

XML

Fair Value Measurements - Fair Value Recurring Basis, Unobservable Input (Details) - Significant Unobservable Inputs (Level 3) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Liabilities
Changes in Unrealized Gain/(Loss) Included in Net Income, Liabilities	$ (1)	$ (1)	$ (3)	$ (3)
Contingent Consideration
Liabilities
Changes in Unrealized Gain/(Loss) Included in Net Income, Liabilities	(1)	(1)	(3)	(3)
Fair Value, Measurements, Recurring
Assets
Beginning balance	2,021	2,229	2,030	2,202
Total realized/unrealized gains (losses), Included in net income	(1)	(2)	30	(8)
Total realized/unrealized gains (losses), Included in OCI	(4)	21	(20)	55
Purchases	274	111	751	661
Settlements	(82)	(79)	(294)	(351)
Sales	(38)	(30)	(124)	(204)
Transfers into Level 3	9	23	27	81
Transfers out of Level 3	(229)	(184)	(450)	(347)
Ending balance	1,950	2,089	1,950	2,089
Freestanding Derivatives, net
Beginning balance	3	5	2	10
Total realized/unrealized gains (losses), Included in net income	0	(1)	2	(11)
Total realized/unrealized gains (losses), Included in OCI	0	0	0	0
Purchases	0	0	1	5
Settlements	0	0	0	0
Sales	0	0	(2)	0
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Ending balance	3	4	3	4
Liabilities
Beginning balance	(31)	(27)	(29)	(25)
Total realized/unrealized gains (losses), Included in OCI	0	0	0	0
Purchases	0	0	0	0
Settlements	0	0	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Sales	0	0	0	0
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Ending balance	(32)	(28)	(32)	(28)
Fair Value, Measurements, Recurring | Contingent Consideration
Liabilities
Beginning balance	(31)	(27)	(29)	(25)
Total realized/unrealized gains (losses), Included in OCI	0	0	0	0
Purchases	0	0	0	0
Settlements	0	0	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Sales	0	0	0	0
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Ending balance	(32)	(28)	(32)	(28)
Fair Value, Measurements, Recurring | Equity
Freestanding Derivatives, net
Beginning balance	1	2	1	0
Total realized/unrealized gains (losses), Included in net income	0	0	1	(3)
Total realized/unrealized gains (losses), Included in OCI	0	0	0	0
Purchases	0	0	1	5
Settlements	0	0	0	0
Sales	0	0	(2)	0
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Ending balance	1	2	1	2
Fair Value, Measurements, Recurring | Interest rate derivatives
Freestanding Derivatives, net
Beginning balance	2	3	1	9
Total realized/unrealized gains (losses), Included in net income	0	(1)	1	(7)
Total realized/unrealized gains (losses), Included in OCI	0	0	0	0
Purchases	0	0	0	0
Settlements	0	0	0	0
Sales	0	0	0	0
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Ending balance	2	2	2	2
Fair Value, Measurements, Recurring | Other contracts
Freestanding Derivatives, net
Beginning balance				1
Total realized/unrealized gains (losses), Included in net income				(1)
Total realized/unrealized gains (losses), Included in OCI				0
Purchases				0
Settlements				0
Sales				0
Transfers into Level 3				0
Transfers out of Level 3				0
Ending balance		0		0
Fair Value, Measurements, Recurring | Equity Securities, at fair value | Equity Securities, at fair value
Assets
Beginning balance	66		76
Total realized/unrealized gains (losses), Included in net income	0		28
Total realized/unrealized gains (losses), Included in OCI	0		1
Purchases	12		13
Settlements	0		0
Sales	0		(40)
Transfers into Level 3	0		0
Transfers out of Level 3	0		0
Ending balance	78		78
Fair Value, Measurements, Recurring | Fixed Income Securities, Fair Value Option [Member] | Total fixed maturities, FVO
Assets
Beginning balance				11
Total realized/unrealized gains (losses), Included in net income				0
Total realized/unrealized gains (losses), Included in OCI				0
Purchases				4
Settlements				(2)
Sales				(13)
Transfers into Level 3				0
Transfers out of Level 3				0
Ending balance		0		0
Fair Value, Measurements, Recurring | Securities available-for-sale and other | Equity Securities, at fair value
Assets
Beginning balance		55		55
Total realized/unrealized gains (losses), Included in net income		0		0
Total realized/unrealized gains (losses), Included in OCI		(2)		(4)
Purchases		20		22
Settlements		0		0
Sales		0		0
Transfers into Level 3		0		0
Transfers out of Level 3		0		0
Ending balance		73		73
Fair Value, Measurements, Recurring | Securities available-for-sale and other | Total fixed maturities, FVO
Assets
Beginning balance	1,952	2,169	1,952	2,126
Total realized/unrealized gains (losses), Included in net income	(1)	(1)	0	3
Total realized/unrealized gains (losses), Included in OCI	(4)	23	(21)	59
Purchases	262	91	737	630
Settlements	(82)	(79)	(294)	(349)
Sales	(38)	(30)	(82)	(191)
Transfers into Level 3	9	23	27	81
Transfers out of Level 3	(229)	(184)	(450)	(347)
Ending balance	1,869	2,012	1,869	2,012
Fair Value, Measurements, Recurring | Securities available-for-sale and other | ABS | Total fixed maturities, FVO
Assets
Beginning balance	57	63	19	45
Total realized/unrealized gains (losses), Included in net income	0	0	0	0
Total realized/unrealized gains (losses), Included in OCI	0	0	0	0
Purchases	39	0	89	56
Settlements	(2)	(3)	(5)	(6)
Sales	0	(6)	0	(6)
Transfers into Level 3	9	4	12	27
Transfers out of Level 3	(49)	(32)	(61)	(90)
Ending balance	54	26	54	26
Fair Value, Measurements, Recurring | Securities available-for-sale and other | CLOs | Total fixed maturities, FVO
Assets
Beginning balance	159	203	95	154
Total realized/unrealized gains (losses), Included in net income	0	0	0	0
Purchases	211	9	309	195
Settlements	0	0	0	(101)
Sales	0	0	(4)	0
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	(74)	(116)	(104)	(152)
Ending balance	296	96	296	96
Fair Value, Measurements, Recurring | Securities available-for-sale and other | CMBS | Total fixed maturities, FVO
Assets
Beginning balance	28	65	69	59
Total realized/unrealized gains (losses), Included in net income	(1)	(1)	(1)	(2)
Total realized/unrealized gains (losses), Included in OCI	1	0	0	0
Purchases	0	0	25	42
Settlements	(1)	(3)	(4)	(7)
Sales	0	0	(8)	0
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	(5)	0	(59)	(31)
Ending balance	22	61	22	61
Fair Value, Measurements, Recurring | Securities available-for-sale and other | Corporate | Total fixed maturities, FVO
Assets
Beginning balance	559	528	520	514
Total realized/unrealized gains (losses), Included in net income	0	0	1	1
Total realized/unrealized gains (losses), Included in OCI	(2)	5	(10)	16
Purchases	12	36	143	169
Settlements	(2)	(1)	(34)	(42)
Sales	(12)	(24)	(43)	(141)
Transfers into Level 3	0	19	15	54
Transfers out of Level 3	(4)	(30)	(41)	(38)
Ending balance	551	533	551	533
Fair Value, Measurements, Recurring | Securities available-for-sale and other | Foreign government/government agencies | Total fixed maturities, FVO
Assets
Beginning balance	3	22	2	47
Total realized/unrealized gains (losses), Included in net income	0	0	0	0
Total realized/unrealized gains (losses), Included in OCI	0	1	0	3
Purchases	0	7	1	12
Settlements	0	0	0	0
Sales	0	0	0	(2)
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	(5)	0	(35)
Ending balance	3	25	3	25
Fair Value, Measurements, Recurring | Securities available-for-sale and other | Municipal | Total fixed maturities, FVO
Assets
Beginning balance	9	16	17	46
Total realized/unrealized gains (losses), Included in net income	0	0	0	4
Total realized/unrealized gains (losses), Included in OCI	0	0	(1)	1
Purchases	0	0	0	0
Settlements	0	0	0	0
Sales	0	0	0	(35)
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	0	(7)	0
Ending balance	9	16	9	16
Fair Value, Measurements, Recurring | Securities available-for-sale and other | RMBS | Total fixed maturities, FVO
Assets
Beginning balance	1,137	1,272	1,230	1,261
Total realized/unrealized gains (losses), Included in net income	0	0	0	0
Total realized/unrealized gains (losses), Included in OCI	(3)	17	(10)	39
Purchases	0	39	170	156
Settlements	(77)	(72)	(251)	(193)
Sales	(26)	0	(27)	(7)
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	(97)	(1)	(178)	(1)
Ending balance	$ 934	$ 1,255	$ 934	$ 1,255

XML

Fair Value Measurements - Changes in Unrealized Gains (Losses) Included in Net Income for Financial Instruments Classified as Level 3 Still Held at Year End (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets	$ (1)	$ (1)	$ (1)	$ (9)
Significant Unobservable Inputs (Level 3)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Changes in Unrealized Gain/(Loss) Included in Net Income, Liabilities	(1)	(1)	(3)	(3)
Significant Unobservable Inputs (Level 3) | Contingent Consideration
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Changes in Unrealized Gain/(Loss) Included in Net Income, Liabilities	(1)	(1)	(3)	(3)
Significant Unobservable Inputs (Level 3) | Freestanding Derivatives, net
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Changes in Unrealized Gain/(Loss) Included in Net Income, Derivatives	(1)	(1)	(1)	(8)
Significant Unobservable Inputs (Level 3) | Freestanding Derivatives, net | Equity
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Changes in Unrealized Gain/(Loss) Included in Net Income, Derivatives	(1)	0	(1)	(2)
Significant Unobservable Inputs (Level 3) | Freestanding Derivatives, net | Interest rate derivatives
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Changes in Unrealized Gain/(Loss) Included in Net Income, Derivatives		(1)		(6)
Significant Unobservable Inputs (Level 3) | Total Fixed Maturities, AFS | Securities available-for-sale and other
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets				(1)
Significant Unobservable Inputs (Level 3) | Total Fixed Maturities, AFS | CMBS | Securities available-for-sale and other
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Changes in Unrealized Gain/(Loss) Included in Net Income, Assets	$ 0	$ 0	$ 0	$ (1)

XML

Fair Value Measurements - Fair Value Option (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Fair Value Inputs and Valuation Techniques
Fixed maturities, at fair value using the fair value option	$ 24		$ 24		$ 41
Changes in fair value of assets using fair value option	$ 0	$ 1	$ 0	$ (1)

XML

Fair Value Measurements - Financial Instruments Not Carried at Fair Value (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, carrying value	$ 61,437	$ 225,260
Assets, fair value	40,779	40,297
Liabilities, carrying value	48,708	211,766
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	1,948	2,029
Significant Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	36,251	35,950
Carrying Amount | Significant Unobservable Inputs (Level 3) | Other policyholder funds and benefits payable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, carrying value	784	825
Carrying Amount | Significant Unobservable Inputs (Level 3) | Mortgage loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, carrying value	3,559	3,175
Carrying Amount | Significant Observable Inputs (Level 2) | Senior notes [1]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, carrying value	3,587	3,415
Carrying Amount | Significant Observable Inputs (Level 2) | Junior subordinated debentures [1]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, carrying value	1,089	1,583
Fair Value | Significant Unobservable Inputs (Level 3) | Other policyholder funds and benefits payable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	785	827
Fair Value | Significant Unobservable Inputs (Level 3) | Mortgage loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	3,518	3,220
Fair Value | Significant Observable Inputs (Level 2) | Senior notes [1]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	3,940	4,054
Fair Value | Significant Observable Inputs (Level 2) | Junior subordinated debentures [1]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	$ 1,142	$ 1,699

XML

Investments - Investments - Net Realized Capital Gains (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Schedule of Investments [Line Items]
Gross gains on sales	$ 26,000,000	$ 46,000,000	$ 91,000,000	$ 184,000,000
Gross losses on sales	(41,000,000)	(16,000,000)	(129,000,000)	(84,000,000)
Net OTTI losses recognized in earnings	(1,000,000)	(1,000,000)	(1,000,000)	(4,000,000)
Transactional foreign currency revaluation	0	0	1,000,000	14,000,000
Net realized capital gains	38,000,000	26,000,000	60,000,000	105,000,000
Other net realized capital gains	39,000,000	27,000,000	61,000,000	109,000,000
Proceeds from Sale of Available-for-sale Securities	4,600,000,000	2,900,000,000	13,100,000,000	11,400,000,000
Net Realized and Unrealized Gain (Loss) on Trading Securities	41		50
Net Unrealized Gain on Securities | Reclassification out of Accumulated Other Comprehensive Income
Schedule of Investments [Line Items]
Other net realized capital gains	(15,000,000)	32,000,000	(59,000,000)	102,000,000
Non-qualifying foreign currency derivatives
Schedule of Investments [Line Items]
Non-qualifying foreign currency derivatives	9,000,000	(1,000,000)	8,000,000	(7,000,000)
Non-qualifying foreign currency derivatives | Other Credit Derivatives
Schedule of Investments [Line Items]
Non-qualifying foreign currency derivatives	8,000,000	(1,000,000)	6,000,000	7,000,000
Other, net
Schedule of Investments [Line Items]
Other, net	7,000,000	(3,000,000)	8,000,000	9,000,000
Equity Securities [Member]
Schedule of Investments [Line Items]
Equity securities	46,000,000	0	88,000,000	0
Net OTTI losses recognized in earnings	0	(1,000,000)	0	(2,000,000)
Foreign Exchange Forward [Member] | Non-qualifying foreign currency derivatives
Schedule of Investments [Line Items]
Non-qualifying foreign currency derivatives	$ 1,000,000	$ 0	$ 2,000,000	$ (14,000,000)

XML

Investments - Investments - Other Than Temporary Impairment (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Credit impairments	$ 1	$ 0	$ 1	$ 2
Intent-to-sell impairments	0	0	0	0
Impairments on equity securities and other impairments	1	1	1	4
Other than Temporary Impairment Losses, Investments	1	1	1	4
Cumulative Credit Impairments
Beginning balance	(20)	(94)	(25)	(110)
Additions for credit impairments recognized on:
Securities not previously impaired	0	0	0	0
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Additions, Additional Credit Losses	1	0	1	2
Reductions for credit impairments previously recognized on:
Securities that matured or were sold during the period	1	0	6	8
Securities due to an increase in expected cash flows	0	0	0	10
Ending balance	(20)	(94)	(20)	(94)
Equity Securities [Member]
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Impairments on equity securities and other impairments	$ 0	$ 1	$ 0	$ 2

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Investments - Investments - Available-for-Sale Securities (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Debt Securities, Available-for-sale [Line Items]
Fixed maturities, available-for-sale, at fair value, amortized cost	$ 36,094,000,000	$ 35,612,000,000
Gross Unrealized Gains, fixed maturities, available-for-sale	679,000,000	1,466,000,000
Gross Unrealized Losses, fixed maturities, available-for-sale	(607,000,000)	(114,000,000)
Fixed maturities, available-for-sale, at fair value (amortized cost of $54,478 and $53,805)	36,166,000,000	36,964,000,000
Non-Credit OTTI	(5,000,000)	(5,000,000)
Equity securities, available-for-sale, Cost or Amortized Cost	0	907,000,000
Equity securities, AFS	0	1,012,000,000
Available-for-sale, Cost or Amortized Cost	36,094,000,000	36,519,000,000
Available-for-sale, Gross Unrealized Gains	679,000,000	1,587,000,000
Available-for-sale, Gross Unrealized Losses	(607,000,000)	(130,000,000)
Available-for-sale, Fair Value	36,166,000,000	37,976,000,000
Amortized Cost
One year or less	1,033,000,000	1,507,000,000
Over one year through five years	6,233,000,000	5,007,000,000
Over five years through ten years	6,543,000,000	6,505,000,000
Over ten years	12,922,000,000	13,928,000,000
Subtotal	26,731,000,000	26,947,000,000
Mortgage-backed and asset-backed securities	9,363,000,000	8,665,000,000
Fair Value
One year or less	1,037,000,000	1,513,000,000
Over one year through five years	6,242,000,000	5,119,000,000
Over five years through ten years	6,469,000,000	6,700,000,000
Over ten years	13,126,000,000	14,866,000,000
Subtotal	26,874,000,000	28,198,000,000
Mortgage-backed and asset-backed securities	9,292,000,000	8,766,000,000
Concentration Risk, Credit Risk, Financial Instrument, Maximum Exposure	0	0
ABS
Debt Securities, Available-for-sale [Line Items]
Fixed maturities, available-for-sale, at fair value, amortized cost	1,191,000,000	1,119,000,000
Gross Unrealized Gains, fixed maturities, available-for-sale	3,000,000	9,000,000
Gross Unrealized Losses, fixed maturities, available-for-sale	(3,000,000)	(2,000,000)
Fixed maturities, available-for-sale, at fair value (amortized cost of $54,478 and $53,805)	1,191,000,000	1,126,000,000
Non-Credit OTTI	0	0
CLOs
Debt Securities, Available-for-sale [Line Items]
Fixed maturities, available-for-sale, at fair value, amortized cost	1,328,000,000	1,257,000,000
Gross Unrealized Gains, fixed maturities, available-for-sale	1,000,000	3,000,000
Gross Unrealized Losses, fixed maturities, available-for-sale	(3,000,000)	0
Fixed maturities, available-for-sale, at fair value (amortized cost of $54,478 and $53,805)	1,326,000,000	1,260,000,000
Non-Credit OTTI	0	0
CMBS
Debt Securities, Available-for-sale [Line Items]
Fixed maturities, available-for-sale, at fair value, amortized cost	3,718,000,000	3,304,000,000
Gross Unrealized Gains, fixed maturities, available-for-sale	25,000,000	58,000,000
Gross Unrealized Losses, fixed maturities, available-for-sale	(86,000,000)	(26,000,000)
Fixed maturities, available-for-sale, at fair value (amortized cost of $54,478 and $53,805)	3,657,000,000	3,336,000,000
Non-Credit OTTI	(5,000,000)	(5,000,000)
Corporate
Debt Securities, Available-for-sale [Line Items]
Fixed maturities, available-for-sale, at fair value, amortized cost	13,640,000,000	12,370,000,000
Gross Unrealized Gains, fixed maturities, available-for-sale	176,000,000	490,000,000
Gross Unrealized Losses, fixed maturities, available-for-sale	(324,000,000)	(56,000,000)
Fixed maturities, available-for-sale, at fair value (amortized cost of $54,478 and $53,805)	13,492,000,000	12,804,000,000
Non-Credit OTTI	0	0
Foreign Govt./Govt. Agencies
Debt Securities, Available-for-sale [Line Items]
Fixed maturities, available-for-sale, at fair value, amortized cost	961,000,000	1,071,000,000
Gross Unrealized Gains, fixed maturities, available-for-sale	11,000,000	43,000,000
Gross Unrealized Losses, fixed maturities, available-for-sale	(20,000,000)	(4,000,000)
Fixed maturities, available-for-sale, at fair value (amortized cost of $54,478 and $53,805)	952,000,000	1,110,000,000
Non-Credit OTTI	0	0
Municipal
Debt Securities, Available-for-sale [Line Items]
Fixed maturities, available-for-sale, at fair value, amortized cost	10,276,000,000	11,743,000,000
Gross Unrealized Gains, fixed maturities, available-for-sale	402,000,000	754,000,000
Gross Unrealized Losses, fixed maturities, available-for-sale	(76,000,000)	(12,000,000)
Fixed maturities, available-for-sale, at fair value (amortized cost of $54,478 and $53,805)	10,602,000,000	12,485,000,000
Non-Credit OTTI	0	0
RMBS
Debt Securities, Available-for-sale [Line Items]
Fixed maturities, available-for-sale, at fair value, amortized cost	3,126,000,000	2,985,000,000
Gross Unrealized Gains, fixed maturities, available-for-sale	44,000,000	63,000,000
Gross Unrealized Losses, fixed maturities, available-for-sale	(52,000,000)	(4,000,000)
Fixed maturities, available-for-sale, at fair value (amortized cost of $54,478 and $53,805)	3,118,000,000	3,044,000,000
Non-Credit OTTI	0	0
U.S. Treasuries
Debt Securities, Available-for-sale [Line Items]
Fixed maturities, available-for-sale, at fair value, amortized cost	1,854,000,000	1,763,000,000
Gross Unrealized Gains, fixed maturities, available-for-sale	17,000,000	46,000,000
Gross Unrealized Losses, fixed maturities, available-for-sale	(43,000,000)	(10,000,000)
Fixed maturities, available-for-sale, at fair value (amortized cost of $54,478 and $53,805)	1,828,000,000	1,799,000,000
Non-Credit OTTI	0	0
Equity Securities, at fair value
Debt Securities, Available-for-sale [Line Items]
Non-Credit OTTI		0
Equity securities, available-for-sale, Cost or Amortized Cost		907,000,000
Gross Unrealized Gains, fixed maturities, available-for-sale		121,000,000
Gross Unrealized Losses Gains, fixed maturities, available-for-sale		(16,000,000)
Equity securities, AFS		$ 1,012,000,000

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Investments - Investments - Unrealized Losses on AFS Securities (Details) $ in Millions	Sep. 30, 2018 USD ($) security	Dec. 31, 2017 USD ($)
Debt Securities, Available-for-sale [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Amortized Cost	$ 16,755	$ 6,798
Amortized Cost
12 Months or More	3,183	2,040
Total	19,938	8,838
Fair Value
Less Than 12 Months	16,348	6,739
12 Months or More	2,983	1,969
Total	19,331	8,708
Unrealized Losses
Less Than 12 Months	(407)	(59)
12 Months or More	(200)	(71)
Total	$ (607)	(130)
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security	2,926
Percentage of Gross Unrealized Losses Depressed Less than Twenty Percent of Cost or Amortized Cost	98.53042%
ABS
Debt Securities, Available-for-sale [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Amortized Cost	$ 668	461
Amortized Cost
12 Months or More	74	30
Total	742	491
Fair Value
Less Than 12 Months	666	460
12 Months or More	73	29
Total	739	489
Unrealized Losses
Less Than 12 Months	(2)	(1)
12 Months or More	(1)	(1)
Total	(3)	(2)
CLOs
Debt Securities, Available-for-sale [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Amortized Cost	929	359
Amortized Cost
12 Months or More	10	1
Total	939	360
Fair Value
Less Than 12 Months	926	359
12 Months or More	10	1
Total	936	360
Unrealized Losses
Less Than 12 Months	(3)	0
12 Months or More	0	0
Total	(3)	0
CMBS
Debt Securities, Available-for-sale [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Amortized Cost	1,995	1,178
Amortized Cost
12 Months or More	740	243
Total	2,735	1,421
Fair Value
Less Than 12 Months	1,952	1,167
12 Months or More	697	228
Total	2,649	1,395
Unrealized Losses
Less Than 12 Months	(43)	(11)
12 Months or More	(43)	(15)
Total	(86)	(26)
Corporate
Debt Securities, Available-for-sale [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Amortized Cost	7,586	2,322
Amortized Cost
12 Months or More	1,412	1,064
Total	8,998	3,386
Fair Value
Less Than 12 Months	7,364	2,302
12 Months or More	1,310	1,028
Total	8,674	3,330
Unrealized Losses
Less Than 12 Months	(222)	(20)
12 Months or More	(102)	(36)
Total	(324)	(56)
Foreign Govt./Govt. Agencies
Debt Securities, Available-for-sale [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Amortized Cost	552	244
Amortized Cost
12 Months or More	95	51
Total	647	295
Fair Value
Less Than 12 Months	537	242
12 Months or More	90	49
Total	627	291
Unrealized Losses
Less Than 12 Months	(15)	(2)
12 Months or More	(5)	(2)
Total	(20)	(4)
Municipal
Debt Securities, Available-for-sale [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Amortized Cost	2,206	511
Amortized Cost
12 Months or More	266	236
Total	2,472	747
Fair Value
Less Than 12 Months	2,151	507
12 Months or More	245	228
Total	2,396	735
Unrealized Losses
Less Than 12 Months	(55)	(4)
12 Months or More	(21)	(8)
Total	(76)	(12)
RMBS
Debt Securities, Available-for-sale [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Amortized Cost	1,795	889
Amortized Cost
12 Months or More	184	137
Total	1,979	1,026
Fair Value
Less Than 12 Months	1,751	887
12 Months or More	176	135
Total	1,927	1,022
Unrealized Losses
Less Than 12 Months	(44)	(2)
12 Months or More	(8)	(2)
Total	(52)	(4)
U.S. Treasuries
Debt Securities, Available-for-sale [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Amortized Cost	1,024	658
Amortized Cost
12 Months or More	402	254
Total	1,426	912
Fair Value
Less Than 12 Months	1,001	652
12 Months or More	382	250
Total	1,383	902
Unrealized Losses
Less Than 12 Months	(23)	(6)
12 Months or More	(20)	(4)
Total	$ (43)	(10)
Available-for-sale Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Amortized Cost		6,622
Amortized Cost
12 Months or More		2,016
Total		8,638
Fair Value
Less Than 12 Months		6,576
12 Months or More		1,948
Total		8,524
Unrealized Losses
Less Than 12 Months		(46)
12 Months or More		(68)
Total		(114)
Equity Securities, at fair value
Debt Securities, Available-for-sale [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Amortized Cost		176
Amortized Cost
12 Months or More		24
Total		200
Fair Value
Less Than 12 Months		163
12 Months or More		21
Total		184
Unrealized Losses
Less Than 12 Months		(13)
12 Months or More		(3)
Total		$ (16)

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Investments - Investments - Mortgage Loans- Valuation Allowance Activity (Details) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Mortgage loans	$ 3,559,000,000		$ 3,175,000,000
Current Weighted Average Loan to Value Ratio of Commercial Mortgage Loan	53.00%
Original Weighted Average Loan to Value Ratio of Commercial Mortgage loan	61.00%
Servicing rights	$ 0		0
Mortgage Loans on Real Estate, Other Additions	0
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	(1,000,000)	$ 0
(Additions)/Reversals	0	(1,000,000)
Deductions	0	1,000,000
Ending balance	(1,000,000)	$ 0
Held-for-sale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Mortgage loans	0		0
SEC Schedule, 12-09, Allowance, Loan and Lease Loss [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Mortgage loans	24,000,000		0
Commercial Loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Mortgage loans	3,559,000,000		3,175,000,000
Allowance for Loan and Lease Losses [Roll Forward]
Ending balance	(1)
Commercial Loan [Member] | Mortgage loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Mortgage loans past due by 90 days or more	0
Commercial Loan [Member] | Mortgage loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Mortgage loans past due by 90 days or more			0
Commercial Loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans serviced	5,900,000,000		1,300,000,000
Loans serviced on behalf of third parties	3,600,000,000		402,000,000
Commercial Loan [Member] | Investments
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans serviced on behalf of third parties, retained and reported as assets	$ 2,300,000,000		566,000,000
Commercial Loan [Member] | Assets Held for Sale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans serviced on behalf of third parties, retained and reported as assets			$ 356,000,000

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Investments - Investments - Commercial Mortgage Loans Credit Quality (Details) $ in Millions	Sep. 30, 2018 USD ($)	Dec. 31, 2017 USD ($)
Financing Receivable, Recorded Investment [Line Items]
Carrying Value	$ 3,559	$ 3,175
Commercial Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Carrying Value	$ 3,559	$ 3,175
Avg. Debt-Service Coverage Ratio	2.50	2.69
Commercial Loan [Member] | Greater than 80%
Financing Receivable, Recorded Investment [Line Items]
Carrying Value	$ 0	$ 18
Avg. Debt-Service Coverage Ratio	0.00	1.27
Commercial Loan [Member] | 65% - 80%
Financing Receivable, Recorded Investment [Line Items]
Carrying Value	$ 406	$ 265
Avg. Debt-Service Coverage Ratio	1.68	1.95
Commercial Loan [Member] | Less than 65%
Financing Receivable, Recorded Investment [Line Items]
Carrying Value	$ 3,153	$ 2,892
Avg. Debt-Service Coverage Ratio	2.60	2.76

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Investments - Investments - Mortgage Loans by Region and Property Type (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	$ 3,559	$ 3,175
Industrial
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	1,018	817
Multifamily
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	1,083	1,006
Office
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	760	751
Retail
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	373	367
Other
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	243	234
Residential Real Estate [Member]
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	82	0
East North Central
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	250	251
Middle Atlantic
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	271	272
Mountain
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	31	31
New England
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	290	293
Pacific
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	870	760
South Atlantic
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	713	710
West North Central
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	148	149
West South Central
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	421	278
Other
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	$ 565	$ 431
Mortgage loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Percent of Total	100.00%	100.00%
Mortgage loans | Industrial
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Percent of Total	28.60%	25.70%
Mortgage loans | Multifamily
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Percent of Total	30.40%	31.70%
Mortgage loans | Office
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Percent of Total	21.40%	23.70%
Mortgage loans | Retail
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Percent of Total	10.50%	11.50%
Mortgage loans | Other
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Percent of Total	6.80%	7.40%
Mortgage loans | Residential Real Estate [Member]
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Percent of Total	2.30%	0.00%
Mortgage loans | East North Central
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Percent of Total	7.00%	7.90%
Mortgage loans | Middle Atlantic
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Percent of Total	7.60%	8.60%
Mortgage loans | Mountain
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Percent of Total	0.90%	1.00%
Mortgage loans | New England
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Percent of Total	8.20%	9.20%
Mortgage loans | Pacific
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Percent of Total	24.40%	23.90%
Mortgage loans | South Atlantic
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Percent of Total	20.00%	22.40%
Mortgage loans | West North Central
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Percent of Total	4.20%	4.70%
Mortgage loans | West South Central
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Percent of Total	11.80%	8.70%
Mortgage loans | Other
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Percent of Total	15.90%	13.60%

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Investments - Investments - VIEs and Other Collateral Transactions (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Concentration Risk [Line Items]
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	$ 1,000	$ 920
Fair value of securities on deposit	2,500	2,500
U.S. Treasuries
Concentration Risk [Line Items]
Debt Securities, Available-for-sale, Restricted	46	104
Variable Interest Entity, Not Primary Beneficiary [Member]
Concentration Risk [Line Items]
Variable Interest Entity, Reporting Entity Involvement, Commitments	$ 689	$ 0

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Investments - Investments - Securities Lending and Repurchase Agreements (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Securities Loaned, Collateral, Obligation to Return Securities	$ 0	$ 0
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	36	0
Securities Lending Transactions:
Gross amount of securities on loan	697	922
Gross amount of associated liability for collateral received	714	945
Repurchase agreements:
Gross amount of recognized liabilities for repurchase agreements	167	174
Gross amount of collateral pledged related to repurchase agreements	$ 168	$ 176
Minimum
Securities Sold Under Agreements to Repurchase, Percentage of Fair Value Required to be Paid in Cash at Sale	95.00%

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Derivative Instruments - Derivatives - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount	$ 11,764,000,000		$ 11,764,000,000		$ 12,730,000,000
Collateral receivable	1,000,000		1,000,000		1,000,000
Pledged collateral, securities	68,000,000		68,000,000		101,000,000
Margin Deposit Assets	99,000,000		99,000,000		96,000,000
Cash collateral held	13,000,000		13,000,000		11,000,000
Securities Received as Collateral	2,000,000		2,000,000		0
Collateral Securities Repledged, Delivered, or Used	0		$ 0		$ 0
Securities Sold under Agreements to Repurchase, Fair Value of Collateral			did not sell any securities held as collateral		did not sell any securities held as collateral.
Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount	9,531,000,000		$ 9,531,000,000		$ 10,387,000,000
AOCI Attributable to Parent [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Loss on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring	$ 0	$ 0	$ 0	$ 0

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Derivative Instruments - Derivatives - Derivative Balance Sheet Classification (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Derivatives, Fair Value [Line Items]
Notional Amount	$ 11,764	$ 12,730
Fair Value	(47)	(90)
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement	27	25
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement	74	115
Fixed maturities, available-for-sale
Derivatives, Fair Value [Line Items]
Notional Amount	153	153
Fair Value	0	0
Asset Derivatives	0	0
Liability Derivatives	0	0
Other investments
Derivatives, Fair Value [Line Items]
Notional Amount	9,377	9,957
Fair Value	14	10
Asset Derivatives	19	16
Liability Derivatives	(5)	(6)
Other liabilities
Derivatives, Fair Value [Line Items]
Notional Amount	2,234	2,620
Fair Value	(61)	(100)
Asset Derivatives	8	9
Liability Derivatives	(69)	(109)
Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional Amount	9,531	10,387
Fair Value	(36)	(77)
Asset Derivatives	26	24
Liability Derivatives	(62)	(101)
Interest rate swaps | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional Amount	2,080	2,190
Fair Value	0	0
Asset Derivatives	0	1
Liability Derivatives	0	(1)
Interest rate swaps | Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional Amount	7,100	7,300
Foreign currency swaps | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional Amount	153	153
Fair Value	(11)	(13)
Asset Derivatives	1	0
Liability Derivatives	(12)	(13)
Total cash flow hedges
Derivatives, Fair Value [Line Items]
Notional Amount	2,233	2,343
Fair Value	(11)	(13)
Asset Derivatives	1	1
Liability Derivatives	(12)	(14)
Interest rate swaps and futures | Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional Amount	8,111	7,986
Fair Value	(51)	(83)
Asset Derivatives	3	7
Liability Derivatives	(54)	(90)
Foreign currency swaps and forwards | Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional Amount	318	213
Fair Value	0	(1)
Asset Derivatives	1	0
Liability Derivatives	(1)	(1)
Credit derivatives that purchase credit protection | Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional Amount	8	61
Fair Value	0	1
Asset Derivatives	0	2
Liability Derivatives	0	(1)
Credit derivatives that assume credit risk | Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional Amount	923	823
Fair Value	14	3
Asset Derivatives	15	3
Liability Derivatives	(1)	0
Credit derivatives in offsetting positions | Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional Amount	46	1,046
Fair Value	0	2
Asset Derivatives	6	11
Liability Derivatives	(6)	(9)
Equity index swaps and options | Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional Amount	125	258
Fair Value	1	1
Asset Derivatives	1	1
Liability Derivatives	$ 0	$ 0

XML

Derivative Instruments - Derivatives - Offsetting Derivative Assets and Liabilities (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Derivative [Line Items]
Derivative assets	$ 14	$ 10
Derivative liabilities	(61)	(100)
Other liabilities | Other Investments and Other Liabilities
Derivative [Line Items]
Accrued Interest and Cash Collateral (Received)	(8)	(5)
Gross Amounts of Recognized (Liabilities)	(74)	(115)
Gross Amounts Offset in the Statement of Financial Position, liabilities	(5)	(10)
Derivative liabilities	(61)	(100)
Financial Collateral (Received)	(61)	(96)
Net amount, liabilities	(8)	(9)
Other investments | Other Investments and Other Liabilities
Derivative [Line Items]
Asset Derivatives	27	25
Gross Amounts Offset in the Statement of Financial Position, assets	23	22
Derivative assets	14	10
Accrued Interest and Cash Collateral (Received)	(10)	(7)
Financial Collateral Pledged	2	1
Net Amount, assets	$ 2	$ 2

XML

Derivative Instruments - Derivatives - Cash Flow Hedges (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months			$ 24,000,000
AOCI Attributable to Parent [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Loss on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring	$ 0	$ 0	0	$ 0
Cash Flow Hedging | Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain (Loss) Recognized in OCI on Derivative (Effective Portion)	0	(2,000,000)	(15,000,000)	8,000,000
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net	0	0	0	0
Cash Flow Hedging | Designated as Hedging Instrument | Reclassification out of Accumulated Other Comprehensive Income
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain (Loss) Reclassified from AOCI into Income (Effective Portion)	7,000,000	8,000,000	25,000,000	32,000,000
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain (Loss) Recognized in OCI on Derivative (Effective Portion)		2,000,000	(16,000,000)	16,000,000
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Net realized capital gains
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain (Loss) Reclassified from AOCI into Income (Effective Portion)	0	0	1,000,000	5,000,000
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Net investment income
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain (Loss) Reclassified from AOCI into Income (Effective Portion)	$ 7,000,000	8,000,000	24,000,000	27,000,000
Cash Flow Hedging | Designated as Hedging Instrument | Foreign currency swaps
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain (Loss) Recognized in OCI on Derivative (Effective Portion)		$ (4,000,000)	$ 1,000,000	$ (8,000,000)

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Derivative Instruments - Derivatives - Fair Value Hedges - Non-qualifying Strategies (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Non-qualifying foreign currency derivatives	$ 9	$ (1)	$ 8	$ (7)
Total other non-qualifying derivatives
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Non-qualifying foreign currency derivatives	8	(1)	6	7
Foreign currency swaps and forwards
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Non-qualifying foreign currency derivatives	1	0	2	(14)
Interest rate swaps, swaptions, and futures
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Non-qualifying foreign currency derivatives	1	(4)	7	(6)
Credit derivatives that assume credit risk | Credit derivatives that purchase credit protection
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Non-qualifying foreign currency derivatives	0	8	0	26
Credit derivatives that assume credit risk | Credit derivatives that assume credit risk
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Non-qualifying foreign currency derivatives	8	(2)	0	(9)
Equity Options
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Non-qualifying foreign currency derivatives	(1)	(3)	(1)	(3)
Contingent capital facility put option
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Non-qualifying foreign currency derivatives	$ 0	$ 0	$ 0	$ (1)

XML

Derivative Instruments - Derivatives - Credit Risk Assumed through Credit Derivatives (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Credit Derivatives [Line Items]
Notional Amount	$ 11,764	$ 12,730
Fair Value	(47)	(90)
Credit Default Swap, Selling Protection [Member]
Credit Derivatives [Line Items]
Notional Amount	946	1,346
Credit Risk Derivatives, at Fair Value, Net	8	0
Credit derivatives
Credit Derivatives [Line Items]
Offsetting Notional Amount	23	523
Credit derivatives | Single name credit default swaps | A Minus | Investment grade risk exposure
Credit Derivatives [Line Items]
Notional Amount	170	130
Fair Value	$ 4	$ 3
Weighted Average Years to Maturity	5 years	5 years
Offsetting Notional Amount	$ 0	$ 0
Offsetting Fair Value	0	0
Credit derivatives | Single name credit default swaps | B | Below investment grade risk exposure
Credit Derivatives [Line Items]
Notional Amount		9
Fair Value		0
Offsetting Notional Amount		9
Offsetting Fair Value		0
Credit derivatives | Basket credit default swaps | A Minus | Investment grade risk exposure
Credit Derivatives [Line Items]
Notional Amount	12
Fair Value	$ 0
Weighted Average Years to Maturity	5 years
Offsetting Notional Amount	$ 2
Offsetting Fair Value	0
Credit derivatives | Basket credit default swaps | BBB Plus | Investment grade risk exposure
Credit Derivatives [Line Items]
Notional Amount	743	1,137
Fair Value	$ 10	$ 2
Weighted Average Years to Maturity	6 years	3 years
Offsetting Notional Amount	$ 0	$ 454
Offsetting Fair Value	0	(2)
Credit derivatives | Basket credit default swaps | B Plus | Below investment grade risk exposure
Credit Derivatives [Line Items]
Notional Amount		27
Fair Value		$ 2
Weighted Average Years to Maturity		3 years
Offsetting Notional Amount		$ 27
Offsetting Fair Value		0
Credit derivatives | Basket credit default swaps | A | Investment grade risk exposure
Credit Derivatives [Line Items]
Notional Amount		13
Fair Value		$ (1)
Weighted Average Years to Maturity		5 years
Offsetting Notional Amount		$ 3
Offsetting Fair Value		0
Credit derivatives | Basket credit default swaps | CCC | Below investment grade risk exposure
Credit Derivatives [Line Items]
Notional Amount	21	30
Fair Value	(6)	(6)
Offsetting Notional Amount	21	30
Offsetting Fair Value	6	7
Credit derivatives in offsetting positions | Credit Default Swap, Selling Protection [Member]
Credit Derivatives [Line Items]
Credit Risk Derivatives, at Fair Value, Net	$ 6	$ 5

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Other Intangible Assets - Finite-Lived Intangible Assets (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Mar. 31, 2018	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived Intangible Assets Acquired	$ 46
Finite-Lived Intangible Asset, Useful Life		10 years

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Reserve for Unpaid Losses and Loss Adjustment Expenses - P&C Liabilities for Unpaid Losses and Loss Adjustment Expense (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	$ 32,287
Less: payments
Ending liabilities for unpaid losses and loss adjustment expenses, gross	32,297
Property, Liability and Casualty Insurance Product Line
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	23,775	$ 22,545
Reinsurance recoverables	3,957	3,488
Beginning liabilities for unpaid losses and loss adjustment expenses, net	19,818	19,057
Provision for unpaid losses and loss adjustment expense
Current accident year	5,151	5,587
Prior accident year development	(139)	1
Total provision for unpaid losses and loss adjustment expenses	5,012	5,588
Less: payments
Current accident year	1,647	1,770
Prior accident years	3,166	3,143
Total payments	4,813	4,913
Ending liabilities for unpaid losses and loss adjustment expenses, net	20,017	19,732
Reinsurance recoverables	3,780	3,508
Ending liabilities for unpaid losses and loss adjustment expenses, gross	$ 23,797	$ 23,240

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Reserve for Unpaid Losses and Loss Adjustment Expenses - P&C Prior Accident Years Reserve Development (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Workers’ compensation
Product Information [Line Items]
Prior accident year development	$ (97)	$ (29)
Workers’ compensation discount accretion
Product Information [Line Items]
Prior accident year development	30	21
General liability
Product Information [Line Items]
Prior accident year development	32	10
Package business
Product Information [Line Items]
Prior accident year development	(16)	(22)
Professional liability
Product Information [Line Items]
Prior accident year development	(12)	0
Bond
Product Information [Line Items]
Prior accident year development	0	10
Net asbestos reserves
Product Information [Line Items]
Prior accident year development	0	0
Net environmental reserves
Product Information [Line Items]
Prior accident year development	0	0
Catastrophes
Product Information [Line Items]
Prior accident year development	(47)	(12)
Uncollectible reinsurance
Product Information [Line Items]
Prior accident year development	22	0
Other reserve re-estimates, net
Product Information [Line Items]
Prior accident year development	4	8
Property and Casualty, Commercial Insurance Product Line [Member] | Property
Product Information [Line Items]
Prior accident year development	(10)	(5)
Property and Casualty, Commercial Insurance Product Line [Member] | Automobile
Product Information [Line Items]
Prior accident year development	(15)	20
Property and Casualty, Personal Insurance Product Line [Member] | Property
Product Information [Line Items]
Prior accident year development	(20)	0
Property and Casualty, Personal Insurance Product Line [Member] | Automobile
Product Information [Line Items]
Prior accident year development	$ (10)	$ 0

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Reserve for Unpaid Losses and Loss Adjustment Expenses - P&C Additional Information (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Catastrophes
Liability for Claims and Claims Adjustment Expense [Line Items]
Prior accident year development	$ (47)	$ (12)
Scenario, Adjustment [Member]
Liability for Claims and Claims Adjustment Expense [Line Items]
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments	90
Scenario, Adjustment [Member] | Catastrophes
Liability for Claims and Claims Adjustment Expense [Line Items]
Prior accident year development	133
Scenario, Plan [Member] | Catastrophes
Liability for Claims and Claims Adjustment Expense [Line Items]
Liability for Unpaid Claims and Claims Adjustment Expense, Net	$ 850

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Reserve for Unpaid Losses and Loss Adjustment Expenses - GB Liabilities for Unpaid Losses and Loss Adjustment Expenses (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	$ 32,287
Less: payments
Ending liabilities for unpaid losses and loss adjustment expenses, gross	32,297
Group Insurance Policies [Member]
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]
Beginning liabilities for unpaid losses and loss adjustment expenses, gross	8,512	$ 5,772
Reinsurance recoverables	209	208
Beginning liabilities for unpaid losses and loss adjustment expenses, net	8,303	5,564
Provision for unpaid losses and loss adjustment expense
Current incurral year	3,423	1,960
Prior year's discount accretion	175	148
Prior incurral year development	(284)	(162)
Total provision for unpaid losses and loss adjustment expenses	3,314	1,946
Less: payments
Current incurral year	1,659	917
Prior incurral years	1,741	1,118
Total payments	3,400	2,035
Ending liabilities for unpaid losses and loss adjustment expenses, net	8,259	5,475
Reinsurance recoverables	241	208
Ending liabilities for unpaid losses and loss adjustment expenses, gross	8,500	5,683
Liability for Unpaid Claims and Claims Adjustment Expense, Period Increase (Decrease)	131	74
Aetna Group Insurance [Member] | Group Insurance Policies [Member]
Liability for Claims and Claims Adjustment Expense [Line Items]
Liability for Unpaid Claims and Claims Adjustment Expense, Business Acquisitions	$ 42	$ 0

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Reserve for Unpaid Losses and Loss Adjustment Expenses - GB Additional information (Details) - Group Insurance Policies [Member] - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Liability for Claims and Claims Adjustment Expense [Line Items]
Prior incurral year development	$ (284)	$ (162)
Long-term Disability [Member]
Liability for Claims and Claims Adjustment Expense [Line Items]
Prior incurral year development	195	105
group life term, disability and accident [Member]
Liability for Claims and Claims Adjustment Expense [Line Items]
Prior incurral year development	$ 85	$ 55

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Reserves for Future Policy Benefits (Details) - Annuitization Benefit - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward]
Beginning Balance	$ 713	$ 322
Incurred	10	27
Paid	25	24
Change in unrealized investment gains and losses	(42)	(9)
Ending Balance	656	316
Movement in Liabilities for Guarantees on Long-Duration Contracts, Reinsurance Recoverable [Roll Forward]
Beginning Balance	26	28
Incurred	10	(6)
Paid	1	0
Ending Balance	$ 35	$ 22

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Debt - Debt (Details) - USD ($)		3 Months Ended		9 Months Ended
	Mar. 29, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Jul. 19, 2018	Jun. 15, 2018	Mar. 15, 2018
Debt Instruments [Line Items]
Long-term Debt, Gross								$ 500,000,000
Proceeds from Debt, Net of Issuance Costs				$ 490,000,000
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed				100.00%
Debt Instrument, Interest Rate, Increase (Decrease)				25.00%
Gain (Loss) on Extinguishment of Debt		$ 0	$ 0	$ (6,000,000)	$ 0
Line of Credit Facility, Covenant Terms - Monetary	$ 9,000,000,000
Letters of Credit, Maximum Borrowing Capacity		100,000,000		100,000,000
Line of Credit Facility, Remaining Borrowing Capacity		0		0
Commercial Paper		0		0
Letters of Credit Outstanding, Amount		3,000,000		3,000,000
Federal Home Loan Bank, Advances, Affordable Housing Program, Principal Outstanding		0		0
Revolving Credit Facility
Debt Instruments [Line Items]
Line of Credit Facility, Maximum Amount Outstanding During Period				$ 750,000,000
Line of Credit Facility, Covenant Terms - Percent				35.00%
Revolving Credit Facility | Scenario, Adjustment [Member]
Debt Instruments [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		1,000,000,000		$ 1,000,000,000
Commercial Paper [Member]
Debt Instruments [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity						$ 750
Commercial Paper [Member] | Scenario, Adjustment [Member]
Debt Instruments [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		1,000,000,000		1,000,000,000
Previously Reported [Member]
Debt Instruments [Line Items]
Line of Credit Facility, Covenant Terms - Monetary				13,500,000,000
Letters of Credit, Maximum Borrowing Capacity		250,000,000		$ 250,000,000
4.4% Notes, due 2048
Debt Instruments [Line Items]
Interest rate								4.40%
6.3% Notes, due 2018 | Senior Notes
Debt Instruments [Line Items]
Interest rate								6.30%
Repayment of debt								$ 320,000,000
8.125% Notes, due 2068
Debt Instruments [Line Items]
Interest rate							8.125%
Debt Instrument, Face Amount							$ 500,000,000
3 month Libor 2.125% Notes due 2067 | LIBOR
Debt Instruments [Line Items]
Variable Interest Rate				2.125%
Hartford Fire Insurance Company [Member]
Debt Instruments [Line Items]
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances		1,300,000,000		$ 1,300,000,000
Hartford Life and Accident Insurance Company [Member]
Debt Instruments [Line Items]
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances		$ 500,000,000		$ 500,000,000

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Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Tax provision at U.S. federal statutory rate [1]	$ 112,000,000	$ 64,000,000	$ 333,000,000	$ 105,000,000
Tax-exempt interest	(16,000,000)	(31,000,000)	(50,000,000)	(91,000,000)
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Amount	1,000,000	0	8,000,000	0
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Amount	(3,000,000)	(4,000,000)	(5,000,000)	(12,000,000)
Effective Income Tax Rate Reconciliation, Tax Cuts and Jobs Act of 2017, Amount	11,000,000	0	13,000,000	0
Other	(2,000,000)	7,000,000	(2,000,000)	3,000,000
Income tax expense	103,000,000	$ 36,000,000	297,000,000	$ 5,000,000
Unrecognized Tax Benefits, Period Increase (Decrease)	$ 5		$ 5,000,000

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Income Taxes - Unrecognized tax benefit (expense) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Unrecognized Tax Benefits, Period Increase (Decrease)	$ 5		$ 5,000,000
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance, beginning of period			9,000,000	$ 12,000,000
Gross increases - tax positions in prior period	5,000,000	$ 0	5,000,000	0
Gross decreases - tax positions in prior period	0	0	0	0
Balance, end of period	$ 14,000,000	$ 12,000,000	$ 14,000,000	$ 12,000,000

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Income Taxes - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions	$ 5,000,000	$ 0	$ 5,000,000	$ 0
Effective Income Tax Rate Reconciliation, Tax Cuts and Jobs Act of 2017, Amount	11,000,000	0	13,000,000	0
Income Tax Examination, Penalties and Interest Expense	0	0	0	0
Income Tax Examination, Interest Accrued	0	$ 0	0	$ 0
Tax Credit Carryforward, Valuation Allowance	0		0
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax	789,000,000		789,000,000
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority	4,000,000		4,000,000
Income Taxes Receivable, Sequestration Fee Payable	52,000,000		52,000,000
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability	$ 0		$ 3,000,000

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Income Taxes - Future Tax Benefits (Details) $ in Millions	Sep. 30, 2018 USD ($)
Foreign tax credit carryover
Tax Credit Carryforward [Line Items]
Tax credit carryover, Carryover amount	$ 5
Foreign tax credit credit carryover, Expected tax benefit, gross	5
Foreign tax credit carryover | Expiring within Tax Years 2023 to 2024
Tax Credit Carryforward [Line Items]
Tax credit carryover, Carryover amount	5
General business credit carryover
Tax Credit Carryforward [Line Items]
Tax credit carryover, Carryover amount	4
General business credit carryover, Expected tax benefit, gross	4
General business credit carryover | Expiring Tax Year 2031 to 2037
Tax Credit Carryforward [Line Items]
Tax credit carryover, Carryover amount	4
U.S.
Tax Credit Carryforward [Line Items]
Operating Loss Carryforwards	2,814
Net operating loss carryover, Expected tax benefit, gross	591
U.S. | Expiring Tax Year 2020
Tax Credit Carryforward [Line Items]
Operating Loss Carryforwards	2,814
Foreign
Tax Credit Carryforward [Line Items]
Operating Loss Carryforwards	4
Net operating loss carryover, Expected tax benefit, gross	0
Foreign | No expiration tax year
Tax Credit Carryforward [Line Items]
Operating Loss Carryforwards	$ 4

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Commitments and Contingencies - Additional Information (Details) $ in Millions		1 Months Ended		9 Months Ended	12 Months Ended
	Sep. 30, 2018 USD ($)	Mar. 31, 2016 plaintiff	Feb. 28, 2011 plaintiff	Sep. 30, 2018 USD ($)	Dec. 31, 2016 USD ($)
Asbestos and Environmental
Loss Contingencies [Line Items]
Reinsurance premium					$ 650
Asbestos and Environmental | Maximum
Loss Contingencies [Line Items]
Maximum adverse loss development to be ceded under agreement				$ 1,500
Asbestos
Loss Contingencies [Line Items]
Liability for unpaid losses and loss adjustment expenses, at undiscounted amounts	$ 1,100			1,100
Environmental
Loss Contingencies [Line Items]
Liability for unpaid losses and loss adjustment expenses, at undiscounted amounts	214			214
Asbestos and Environmental
Loss Contingencies [Line Items]
Maximum adverse loss development to be ceded under agreement	$ 1,200
Reinsurance Retention Policy, Excess Retention, Amount Reinsured				285
Reinsurance Retention Policy, Amount Retained				$ 1,700
Pending Litigation [Member] | Mutual Funds Litigation [Member]
Loss Contingencies [Line Items]
Number of funds on which action has been brought | plaintiff		6	6
Settled Litigation [Member] | Mutual Funds Litigation [Member]
Loss Contingencies [Line Items]
Number of funds on which action has been brought | plaintiff		1

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Commitments and Contingencies - Derivative Instruments (Details) $ in Millions	Sep. 30, 2018 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative, Net Liability Position, Aggregate Fair Value	$ 69
Collateral Already Posted, Aggregate Fair Value	68
Additional Collateral, Aggregate Fair Value	$ 8

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Equity - Capital Purchase Program Warrants (Details) - $ / shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Class of Warrant or Right [Line Items]
Warrants outstanding	2.1		2.1		2.2
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 8.886		$ 8.886		$ 8.999
Warrant [Member]
Class of Warrant or Right [Line Items]
Warrants Exercised	0.1	0.6	0.2	1.7

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Accumulated Other Comprehensive Income Loss - AOCI Rollforward (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
	Jan. 01, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 13,494			$ 13,494
OCI, net of tax		$ (166)	$ 91	(2,177)	$ 922
Ending balance		12,729	17,233	12,729	17,233
TaxCutsAndJobsActOf2017ReclassificationFromAociToRetainedEarningsTaxEffect	(88)
Equity securities and shadow DAC [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of accounting changes, net of tax [1]	93
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
OCI, before Reclassifications, Net of Tax, Attributable to Parent		(183)	119	(2,213)	683
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	1,931	211	1,755	1,931	1,276
Cumulative effect of accounting changes, net of tax [1]						$ 273
Adjusted balance, beginning of period						2,204
Amounts reclassified from AOCI		12	(34)	49	(119)
OCI, net of tax		(171)	85	(2,164)	564
Ending balance		40	1,840	40	1,840
Accumulated Other-than-Temporary Impairment Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
OCI, before Reclassifications, Net of Tax, Attributable to Parent		(1)	(1)	0	(1)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(3)	(3)	(3)	(3)	(3)
Cumulative effect of accounting changes, net of tax [1]						0
Adjusted balance, beginning of period						(3)
Amounts reclassified from AOCI		0	0	(1)	0
OCI, net of tax		(1)	(1)	(1)	(1)
Ending balance		(4)	(4)	(4)	(4)
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
OCI, before Reclassifications, Net of Tax, Attributable to Parent		1	(2)	(12)	7
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	18	(12)	57	18	76
Cumulative effect of accounting changes, net of tax [1]						2
Adjusted balance, beginning of period						20
Amounts reclassified from AOCI		(6)	(12)	(25)	(40)
OCI, net of tax		(5)	(14)	(37)	(33)
Ending balance		(17)	43	(17)	43
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
OCI, before Reclassifications, Net of Tax, Attributable to Parent		1	14	(4)	21
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	34	33	13	34	6
Cumulative effect of accounting changes, net of tax [1]						4
Adjusted balance, beginning of period						38
Amounts reclassified from AOCI		0	0	0	0
OCI, net of tax		1	14	(4)	21
Ending balance		34	27	34	27
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
OCI, before Reclassifications, Net of Tax, Attributable to Parent		1	1	0	(144)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(1,317)	(1,582)	(1,328)	(1,317)	(1,692)
Cumulative effect of accounting changes, net of tax [1]						(284)
Adjusted balance, beginning of period						(1,601)
Amounts reclassified from AOCI		9	6	29	515
OCI, net of tax		10	7	29	371
Ending balance		(1,572)	(1,321)	(1,572)	(1,321)
AOCI Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
OCI, before Reclassifications, Net of Tax, Attributable to Parent		(181)	131	(2,229)	566
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 663	(1,353)	494	663	(337)
Cumulative effect of accounting changes, net of tax [1]						(5)	$ 0
Adjusted balance, beginning of period						$ 658	$ (337)
Amounts reclassified from AOCI		15	(40)	52	356
OCI, net of tax		(166)	91	(2,177)	922
Ending balance		$ (1,519)	$ 585	$ (1,519)	$ 585

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Accumulated Other Comprehensive Income Loss - Reclassifications from AOCI (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net realized capital gains	$ 39	$ 27	$ 61	$ 109
Income from continuing operations before income taxes	530	181	1,586	301
Net investment income	444	404	1,323	1,209
Income tax expense	103	36	297	5
Income from discontinued operations, net of tax	5	89	322	276
Net income	432	234	1,611	572
Insurance operating costs and other expenses	1,091	952	3,195	3,521
Reclassification out of Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net income	(15)	40	(52)	(356)
Net Unrealized Gain on Securities | Reclassification out of Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net realized capital gains	(15)	32	(59)	102
Income from continuing operations before income taxes	(15)	32	(59)	102
Income tax expense	(3)	11	(12)	36
Income from discontinued operations, net of tax	0	13	(2)	53
Net income	(12)	34	(49)	119
Accumulated Other-than-Temporary Impairment Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net realized capital gains	0		0
Income from continuing operations before income taxes	0		0
Income tax expense	0		0
Income from discontinued operations, net of tax	0		1
Net income	0		1
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Reclassification out of Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income from continuing operations before income taxes	7	8	25	32
Income tax expense	1	3	5	11
Income from discontinued operations, net of tax	0	7	5	19
Net income	6	12	25	40
Amortization of prior service credit | Reclassification out of Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Insurance operating costs and other expenses	2	2	5	0
Amortization of actuarial loss | Reclassification out of Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Insurance operating costs and other expenses	(14)	(12)	(42)	(45)
Settlement loss | Reclassification out of Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Settlement loss		0		(747)
Pension and Other Postretirement Plan Adjustments | Reclassification out of Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income from continuing operations before income taxes	(12)	(10)	(37)	(792)
Income tax expense	(3)	(4)	(8)	(277)
Net income	(9)	(6)	(29)	(515)
Interest rate swaps | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Reclassification out of Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net realized capital gains	0	0	1	5
Net investment income	$ 7	$ 8	$ 24	$ 27

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Employee Benefit Plans - Components of Net Periodic Benefit Cost (Benefit) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Component of periodic benefit cost
Defined Benefit Plan, Plan Assets, Contributions by Employer			$ 101
Pension Plan [Member]
Component of periodic benefit cost
Service cost	$ 1,000,000	$ 1,000,000	3,000,000	$ 3,000,000
Interest cost	(36,000,000)	(36,000,000)	(107,000,000)	(134,000,000)
Expected return on plan assets	(57,000,000)	(55,000,000)	(172,000,000)	(214,000,000)
Amortization of actuarial loss	(12,000,000)	(11,000,000)	(37,000,000)	(41,000,000)
Settlements	0		0	750,000,000
Net periodic cost (benefit)	(8,000,000)	(7,000,000)	(25,000,000)	714,000,000
Other Postretirement Benefits Plan [Member]
Component of periodic benefit cost
Service cost	0	0	0	6,000,000
Interest cost	(1,000,000)	(2,000,000)	(4,000,000)	6,000,000
Expected return on plan assets	(2,000,000)	(2,000,000)	(5,000,000)	(5,000,000)
Amortization of prior service credit	(2,000,000)	(2,000,000)	(5,000,000)	0
Amortization of actuarial loss	(2,000,000)	(1,000,000)	(5,000,000)	(4,000,000)
Settlements		0
Net periodic cost (benefit)	$ (1,000,000)	$ (1,000,000)	$ (1,000,000)	$ (1,000,000)

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Stock Compensation Plans - Stock Compensation Plans (Details)	9 Months Ended
	Sep. 30, 2018 USD ($)
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award Accelerated Compensation Cost	$ 0

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Business Dispositions and Discontinued Operations - Additional Information (Details) - USD ($) $ in Millions			3 Months Ended			7 Months Ended	9 Months Ended		12 Months Ended
	May 31, 2018	Jan. 01, 2018	Sep. 30, 2018	Mar. 31, 2018	Sep. 30, 2017	Jun. 30, 2018	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loss on discontinued operations							$ (202)	$ 0
TaxCutsAndJobsActOf2017ReclassificationFromAociToRetainedEarningsTaxEffect		$ (88)
Income (Loss) from Ongoing Equity Method Investment in Discontinued Operation after Disposal			$ 2				2
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash proceeds from sale of business	$ 1,400
Dividends paid	$ 300
Ownership interest retained, percentage	9.70%
Ownership interest retained	$ 164
Reduction in long term debt	142								$ 142
Consideration received	$ 1,500
Loss on discontinued operations						$ 3,100			3,300
Discontinued Operation, Amount of Adjustment to Prior Period Gain (Loss) on Disposal, Net of Tax			(11)		$ 0		202	0
TaxCutsAndJobsActOf2017ReclassificationFromAociToRetainedEarningsTaxEffect				$ (193)
Adjustments to AOCI			758				758		$ 1,000
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, before Income Tax			$ 9		$ 77		122	$ 304
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | Shadow DAC [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Discontinued Operation, Amount of Adjustment to Prior Period Gain (Loss) on Disposal, Net of Tax							10
Operating Income (Loss) [Member] | Discontinued Operations, Held-for-sale or Disposed of by Sale [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Discontinued Operation, Amount of Adjustment to Prior Period Gain (Loss) on Disposal, Net of Tax							104
Asset Management Income [Member] | Discontinued Operations, Held-for-sale or Disposed of by Sale [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Management agreement term	5 years
Other Income [Member] | Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | Maximum
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Management agreement term	24 months
Equity [Member] | Discontinued Operations, Held-for-sale or Disposed of by Sale [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Discontinued Operation, Amount of Adjustment to Prior Period Gain (Loss) on Disposal, Net of Tax				$ (193)
Deferred Tax Asset [Domain] | Discontinued Operations, Held-for-sale or Disposed of by Sale [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Discontinued Operation, Amount of Adjustment to Prior Period Gain (Loss) on Disposal, Net of Tax							$ (141)

XML

Business Dispositions and Discontinued Operations - Major Classes of Assets and Liabilities Transferred by the Company to the Buyer in Connection with Sale (Details) - USD ($) $ in Millions	Sep. 30, 2018	May 31, 2018	Dec. 31, 2017
Assets
Total assets held for sale	$ 0		$ 164,936
Liabilities
Total liabilities held for sale	$ 0		162,442
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member]
Assets
Cash and investments		$ 27,058	30,135
Reinsurance recoverables		20,718	20,785
Loss accrual [1]		(3,044)	(3,257)
Other assets		2,907	1,439
Separate account assets		110,773	115,834
Total assets held for sale		158,412	164,936
Liabilities
Reserve for future policy benefits and unpaid loss and loss adjustment expenses		14,308	14,482
Other policyholder funds and benefits payable		28,680	29,228
Long-term debt		142	142
Other liabilities		2,222	2,756
Separate account liabilities		110,773	115,834
Total liabilities held for sale		$ 156,125	$ 162,442

XML

Business Dispositions and Discontinued Operations - Reconciliation of the Major Line Items Constituting Pretax Profit (Loss) of Discontinued Operations (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Benefits, losses and expenses
Income from discontinued operations, net of tax	$ 5	$ 89	$ 322	$ 276
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member]
Revenues
Earned premiums	0	27	39	97
Fee income and other	0	217	382	665
Net investment income	0	326	519	964
Net realized capital gains (losses)	4	(29)	(68)	(53)
Total revenues	4	541	872	1,673
Benefits, losses and expenses
Benefits, losses and loss adjustment expenses	0	356	535	1,036
Amortization of DAC	0	15	58	58
Insurance operating costs and other expenses [1]	(5)	93	157	275
Total benefits, losses and expenses	(5)	464	750	1,369
Income before income taxes	9	77	122	304
Income tax expense (benefit)	(7)	(12)	2	28
Income from operations of discontinued operations, net of tax	16	89	120	276
Net realized capital gain (loss) on disposal, net of tax	(11)	0	202	0
Income from discontinued operations, net of tax	$ 5	$ 89	$ 322	$ 276

XML

Business Dispositions and Discontinued Operations - Cash Flows from Discontinued Operations (Details) - Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net cash provided by operating activities from discontinued operations	$ 603	$ 612
Net cash provided by investing activities from discontinued operations	463	266
Net cash used in financing activities from discontinued operations [1]	(737)	(595)
Cash paid for interest	0	2
Return to capital to parent	$ 619	$ 598