Segment Information

12 Months Ended

Dec. 31, 2019

4. SEGMENT INFORMATION

The Company conducts business principally in five reporting segments including Commercial Lines, Personal Lines, Property & Casualty Other Operations, Group Benefits and Hartford Funds, as well as a Corporate category.

Over 95% of the Company's revenues are generated in the United States ("U.S."). The remaining revenues are generated in the United Kingdom, continental Europe and other international locations.

The Company’s reporting segments, as well as the Corporate category, are as follows:

Commercial Lines

Commercial Lines provides workers’ compensation, property, automobile, general liability, umbrella, professional liability, bond, marine, livestock and assumed reinsurance to businesses in the U.S. and internationally, along with a variety of customized insurance products and risk management services including professional liability, bond, surety, and specialty casualty coverages.

Personal Lines

Personal Lines provides standard automobile, homeowners and personal umbrella coverages to individuals across the U.S., including a special program designed exclusively for members of AARP.

Property & Casualty Other Operations

Property & Casualty Other Operations includes certain property and casualty operations, managed by the Company, that have discontinued writing new business and includes substantially all of the Company’s asbestos and environmental exposures.

Group Benefits

Group Benefits provides employers, associations and financial institutions with group life, accident and disability coverage, along with other products and services, including voluntary benefits, and group retiree health.

Hartford Funds

Hartford Funds offers investment products for retail and retirement accounts and provides investment management and administrative services such as product design, implementation and oversight. This business also manages a portion of the mutual funds which support the variable annuity products within the life and annuity business sold in May 2018.

Corporate

The Company includes in the Corporate category discontinued operations related to the life and annuity business sold in May 2018, reserves for run-off structured settlement and terminal funding agreement liabilities, capital raising activities (including debt financing and related interest expense), transaction expenses incurred in connection with an acquisition, certain purchase accounting adjustments related to goodwill and other expenses not allocated to the reporting segments. Corporate also includes investment management fees and expenses related to managing third party business, including management of the invested assets of Talcott Resolution Life, Inc. and its subsidiaries ("Talcott Resolution"). In addition, Corporate includes a 9.7%

ownership interest in the legal entity that acquired the life and annuity business sold in 2018. For further discussion of continued involvement in the life and annuity business sold, see Note 21 - Business Dispositions and Discontinued Operations of Notes to Consolidated Financial Statements.

Financial Measures and Other Segment Information

Certain transactions between segments occur during the year that primarily relate to tax settlements, insurance coverage, expense reimbursements, services provided, investment transfers and capital contributions. In addition, certain inter-segment transactions occur that relate to interest income on allocated surplus. Consolidated net investment income is unaffected by such transactions.

Revenues



	For the years ended December 31,
	2019		2018			2017
Earned premiums and fee income:
Commercial Lines
Workers’ compensation	$	3,314	$	3,341		$	3,287
Liability	1,064		653			604
Marine	147		—			—
Package business	1,471		1,364			1,301
Property	728		618			604
Professional liability	447		254			246
Bond	261		241			230
Assumed reinsurance	180		—			—
Automobile	713		610			630
Total Commercial Lines	8,325		7,081			6,902
Personal Lines
Automobile	2,248		2,398			2,617
Homeowners	987		1,041			1,117
Total Personal Lines [1]	3,235		3,439			3,734
Property & Casualty Other Operations	2		—			—
Group Benefits
Group disability	2,828		2,746			1,718
Group life	2,521		2,611			1,745
Other	254		241			214
Total Group Benefits	5,603		5,598			3,677
Hartford Funds
Mutual fund and ETP	907		932			888
Talcott Resolution life and annuity separate accounts [2]	92		100			104
Total Hartford Funds [3]	999		1,032			992
Corporate	60		32			4
Total earned premiums and fee income	18,224		17,182			15,309
Total net investment income	1,951		1,780			1,603
Net realized capital gains (losses)	395		(112		)	165
Other revenues	170		105			85
Total revenues	$	20,740	$	18,955		$	17,162


[1]	For 2019, 2018 and 2017, AARP members accounted for earned premiums of $2.9 billion, $3.0 billion and $3.2 billion, respectively.


[2]	Represents revenues earned on the life and annuity separate account AUM sold in May 2018 that is still managed by the Company's Hartford Funds segment.


[3]	Excludes distribution costs of $188 for the year ended December 31, 2017, that were previously netted against fee income and are now presented gross in insurance operating costs and other expenses.

Net Income (Loss)



	For the years ended December 31,
	2019			2018			2017
Commercial Lines	$	1,192		$	1,212		$	865
Personal Lines	318			(32		)	(9		)
Property & Casualty Other Operations	61			15			69
Group Benefits	536			340			294
Hartford Funds	149			148			106
Corporate	(171		)	124			(4,456		)
Net income (loss)	$	2,085		$	1,807		$	(3,131	)
Preferred stock dividends	21			6			—
Net income (loss) available to common stockholders	$	2,064		$	1,801		$	(3,131	)

Net Investment Income



	For the years ended December 31,
	2019		2018		2017
Commercial Lines	$	1,129	$	997	$	949
Personal Lines	179		155		141
Property & Casualty Other Operations	84		90		106
Group Benefits	486		474		381
Hartford Funds	7		5		3
Corporate	66		59		23
Net investment income	$	1,951	$	1,780	$	1,603

Amortization of Deferred Policy Acquisition Costs



	For the years ended December 31,
	2019		2018		2017
Commercial Lines	$	1,296	$	1,048	$	1,009
Personal Lines	259		275		309
Group Benefits	54		45		33
Hartford Funds	12		16		21
Corporate	1		—		—
Total amortization of deferred policy acquisition costs	$	1,622	$	1,384	$	1,372

Amortization of Other Intangible Assets



	For the years ended December 31,
	2019		2018		2017
Commercial Lines	$	18	$	4	$	1
Personal Lines	6		4		4
Group Benefits	41		60		9
Corporate	1		—		—
Total amortization of other intangible assets	$	66	$	68	$	14

Income Tax Expense (Benefit)



	For the years ended December 31,
	2019			2018			2017
Commercial Lines	$	270		$	267		$	377
Personal Lines	76			(19		)	26
Property & Casualty Other Operations	12			(7		)	24
Group Benefits	126			84			38
Hartford Funds	37			38			63
Corporate	(46		)	(95		)	457
Total income tax expense	$	475		$	268		$	985

Assets



	As of December 31,
	2019		2018
Commercial Lines	$	42,041	$	31,693
Personal Lines	6,310		6,180
Property & Casualty Other Operations	3,560		3,351
Group Benefits	14,595		14,114
Hartford Funds	634		583
Corporate	3,677		6,386
Total assets	$	70,817	$	62,307

Revenue from Non-Insurance Contracts with Customers



		For the years ended December 31,
	Revenue Line Item	2019		2018		2017
Commercial Lines
Installment billing fees	Fee income	$	35	$	34	$	37
Personal Lines
Installment billing fees	Fee income	37		40		44
Insurance servicing revenues	Other revenues	83		84		85
Group Benefits
Administrative services	Fee income	180		175		91
Hartford Funds
Advisor, distribution and other management fees	Fee income	911		947		897
Other fees	Fee income	88		85		95
Corporate
Investment management and other fees	Fee income	50		32		4
Transition service revenues	Other revenues	20		21		—
Total non-insurance revenues with customers		$	1,404	$	1,418	$	1,253