Segment Information

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment Information

4. SEGMENT INFORMATION

The Company conducts business principally in five reporting segments comprising 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 Europe and other international locations.

We report our results of operations consistent with the manner in which our chief operating decision maker ("CODM") reviews the business to assess performance, make operating decisions and allocate resources. 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. This agreement provides an important competitive advantage given the size of the 50 plus population and the

strength of the AARP brand, and is in place through December 31, 2032.

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 and associations 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, distribution 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 reserves for run-off structured settlement and terminal funding agreement liabilities, restructuring costs, capital raising activities (including equity financing, debt financing and related interest expense), transaction expenses incurred in connection with an acquisition, certain M&A costs, 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 a portion of the invested assets of Talcott Resolution Life, Inc. and its subsidiaries as well certain affiliates. In addition, up until June 30, 2021, Corporate included a 9.7% ownership interest in Hopmeadow Holdings LP, the legal entity that acquired Talcott Resolution in May 2018 (Hopmeadow Holdings, LP, Talcott Resolution Life Inc., and its subsidiaries are collectively referred to as "Talcott Resolution"). Refer to Note 6 - Investments for additional information.

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 income is unaffected by such transactions.

Revenues

	For the years ended December 31,
	2021		2020		2019
Earned premiums and fee income:
Commercial Lines
Workers’ compensation	$	3,172	$	3,034	$	3,314
Liability	1,622		1,401		1,064
Marine	228		251		147
Package business	1,665		1,540		1,471
Property	829		793		728
Professional liability	655		595		447
Bond	287		274		261
Assumed reinsurance	328		298		180
Automobile	789		754		713
Total Commercial Lines	9,575		8,940		8,325
Personal Lines
Automobile	2,059		2,081		2,248
Homeowners	927		961		987
Total Personal Lines [1]	2,986		3,042		3,235
Property & Casualty Other Operations	—		—		2
Group Benefits
Group disability	2,983		2,832		2,828
Group life	2,388		2,434		2,521
Other	316		270		254
Total Group Benefits	5,687		5,536		5,603
Hartford Funds
Mutual fund and Exchange-Traded Products ("ETP")	1,094		903		907
Talcott Resolution life and annuity separate accounts [2]	95		86		92
Total Hartford Funds	1,189		989		999
Corporate	50		58		60
Total earned premiums and fee income	19,487		18,565		18,224
Total net investment income	2,313		1,846		1,951
Net realized gains (losses)	509		(14)		395
Other revenues	81		126		170
Total revenues	$	22,390	$	20,523	$	20,740

[1]For 2021, 2020 and 2019, AARP members accounted for earned premiums of $2.7 billion, $2.8 billion and $2.9 billion, respectively.

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

Net Income (Loss)

	For the years ended December 31,
	2021		2020		2019
Commercial Lines	$	1,757	$	856	$	1,192
Personal Lines	385		718		318
Property & Casualty Other Operations	(95)		(168)		61
Group Benefits	249		383		536
Hartford Funds	217		170		149
Corporate	(148)		(222)		(171)
Net income	2,365		1,737		2,085
Preferred stock dividends	21		21		21
Net income available to common stockholders	$	2,344	$	1,716	$	2,064

Net Investment Income

	For the years ended December 31,
	2021		2020		2019
Commercial Lines	$	1,502	$	1,160	$	1,129
Personal Lines	157		157		179
Property & Casualty Other Operations	75		55		84
Group Benefits	550		448		486
Hartford Funds	5		4		7
Corporate	24		22		66
Net investment income	$	2,313	$	1,846	$	1,951

Amortization of DAC

	For the years ended December 31,
	2021		2020		2019
Commercial Lines	$	1,398	$	1,397	$	1,296
Personal Lines	230		244		259
Group Benefits	40		50		54
Hartford Funds	12		14		12
Corporate	—		1		1
Total amortization of DAC	$	1,680	$	1,706	$	1,622

Amortization of Other Intangible Assets

	For the years ended December 31,
	2021		2020		2019
Commercial Lines	$	29	$	28	$	18
Personal Lines	2		4		6
Group Benefits	40		40		41
Corporate	—		—		1
Total amortization of other intangible assets	$	71	$	72	$	66

Income Tax Expense (Benefit)

	For the years ended December 31,
	2021		2020		2019
Commercial Lines	$	402	$	176	$	270
Personal Lines	95		184		76
Property & Casualty Other Operations	(28)		(46)		12
Group Benefits	53		88		126
Hartford Funds	56		44		37
Corporate	(47)		(63)		(46)
Total income tax expense	$	531	$	383	$	475

Assets

	As of December 31,
	2021		2020
Commercial Lines	$	48,234	$	45,482
Personal Lines	5,587		5,969
Property & Casualty Other Operations	3,792		3,505
Group Benefits	14,442		14,732
Hartford Funds	720		662
Corporate	3,803		3,761
Total assets	$	76,578	$	74,111

Revenue from Non-Insurance Contracts with Customers

		For the years ended December 31,
	Revenue Line Item	2021		2020		2019
Commercial Lines
Installment billing fees	Fee income	$	34	$	30	$	35
Personal Lines
Installment billing fees	Fee income	32		34		37
Insurance servicing revenues	Other revenues	80		81		83
Group Benefits
Administrative services	Fee income	183		175		180
Hartford Funds
Advisor, distribution and other management fees	Fee income	1,086		901		911
Other fees	Fee income	103		88		88
Corporate
Investment management and other fees	Fee income	50		49		50
Transition service revenues	Other revenues	1		2		20
Total non-insurance revenues with customers		$	1,569	$	1,360	$	1,404