EX-99.2 3 ex992ifs12312022.htm EX-99.2 Document


INVESTOR FINANCIAL SUPPLEMENT
December 31, 2022
thehartfordlogoa.jpg

Measures used in these financial statements and exhibits that are not based on generally accepted accounting principles ("non-GAAP") are denoted with an asterisk (*) the first time they appear in this document. These measures are defined within the Discussion of Non-GAAP and Other Financial Measures section and are reconciled to the most directly comparable generally accepted accounting principles ("GAAP") measure herein.


THE HARTFORD FINANCIAL SERVICES GROUP, INC.
As of February 1, 2023
Address:
One Hartford Plaza  A.M. Best  Standard & Poor’s  Moody’s
Hartford, CT 06155Insurance Financial Strength Ratings:      
Hartford Fire Insurance Company  A+  A+  A1
Hartford Life and Accident Insurance Company  A+  A+  A1
Navigators Insurance CompanyA+A+NR
- Hartford Fire Insurance Company and Hartford Life and Accident Insurance Company ratings are on stable outlook at A.M. Best, Moody’s, and Standard and
  Poor’s
Internet address:- Navigators Insurance Company ratings are on stable outlook at A.M. Best and Standard and Poor's
http://www.thehartford.comNR - Not Rated
Other Ratings:      
Contact:Senior debt  a-  BBB+  Baa1
Susan Spivak BernsteinJunior subordinated debenturesbbbBBB-Baa2
Senior Vice PresidentPreferred stockbbbBBB-Baa3
Investor Relations
Phone (860) 547-6233 - The Hartford Financial Services Group, Inc. senior debt, junior subordinated debentures, and preferred stock are on stable outlook at A.M. Best,
   Standard and Poor’s, and Moody's.
TRANSFER AGENT
Stockholder correspondence should be mailed to:Overnight correspondence should be mailed to:
ComputershareComputershare
P.O. Box 505000462 South 4th Street, Suite 1600
Louisville, KY 40233Louisville, KY 40202
    
Common stock and preferred stock of The Hartford Financial Services Group, Inc. are traded on the New York Stock Exchange under the symbols “HIG” and "HIG PR G", respectively.
This report is for information purposes only. It should be read in conjunction with documents filed by The Hartford Financial Services Group, Inc. with the U.S. Securities and Exchange
Commission, including, without limitation, the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.


THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTOR FINANCIAL SUPPLEMENT
TABLE OF CONTENTS


THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATED FINANCIAL RESULTS
THREE MONTHS ENDEDYEAR ENDED
Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
HIGHLIGHTS
Net income$589 $339 $442 $445 $729 $482 $905 $249 $1,815 $2,365 
Net income available to common stockholders [1]$584 $333 $437 $440 $724 $476 $900 $244 $1,794 $2,344 
Core earnings*$746 $471 $714 $561 $697 $442 $836 $203 $2,492 $2,178 
Total revenues$6,016 $5,580 $5,373 $5,393 $5,816 $5,686 $5,589 $5,299 $22,362 $22,390 
Total assets$73,022 $71,801 $72,402 $75,252 $76,578 $76,290 $74,732 $74,201 
PER SHARE AND SHARES DATA
Basic earnings per common share
Net income available to common stockholders$1.84 $1.03 $1.33 $1.32 $2.14 $1.38 $2.54 $0.68 $5.52 $6.71 
Core earnings*$2.35 $1.46 $2.18 $1.69 $2.06 $1.28 $2.36 $0.57 $7.67 $6.24 
Diluted earnings per common share
Net income available to common stockholders$1.81 $1.02 $1.32 $1.30 $2.10 $1.36 $2.51 $0.67 $5.44 $6.62 
Core earnings*$2.31 $1.44 $2.15 $1.66 $2.02 $1.26 $2.33 $0.56 $7.56 $6.15 
Weighted average common shares outstanding (basic)317.5 322.1 327.4 332.3 338.8 345.6 353.7 358.2 324.8 349.1 
Dilutive effect of stock compensation5.1 4.2 4.4 5.0 6.0 5.1 4.8 4.0 4.7 5.0 
Weighted average common shares outstanding and dilutive potential common shares (diluted)322.6 326.3 331.8 337.3 344.8 350.7 358.5 362.2 329.5 354.1 
Common shares outstanding315.1 319.5 324.7 330.7 334.9 341.8 349.0 357.5 
Book value per common share$42.20 $39.50 $42.78 $47.06 $52.28 $51.28 $51.32 $48.58 
Per common share impact of accumulated other comprehensive income [2]12.30 13.82 10.05 5.14 (0.51)(0.90)(1.64)(0.74)
Book value per common share (excluding AOCI)*$54.50 $53.32 $52.83 $52.20 $51.77 $50.38 $49.68 $47.84 
Book value per diluted share$41.53 $38.99 $42.21 $46.36 $51.36 $50.53 $50.62 $48.04 
Per diluted share impact of AOCI12.10 13.64 9.91 5.06 (0.50)(0.89)(1.61)(0.73)
Book value per diluted share (excluding AOCI)*$53.63 $52.63 $52.12 $51.42 $50.86 $49.64 $49.01 $47.31 
Common shares outstanding and dilutive potential common shares320.2 323.7 329.1 335.7 340.9 346.9 353.8 361.5 
RETURN ON COMMON STOCKHOLDER'S EQUITY ("ROE") [3]
Net income available to common stockholders' ROE ("Net income ROE")11.6 %12.8 %13.1 %15.4 %13.1 %12.3 %12.3 %10.5 %
Core earnings ROE*14.4 %14.3 %14.0 %14.8 %12.7 %12.5 %13.1 %10.9 %
[1]Net income available to common stockholders includes the impact of preferred stock dividends.
[2]Accumulated other comprehensive income ("AOCI") represents net of tax unrealized gain (loss) on fixed maturities, net gain (loss) on cash flow hedging instruments, foreign currency translation adjustments, and pension and other postretirement benefit plan adjustments.
[3]For reconciliation of Net income ROE to Core earnings ROE, see Appendix beginning on page 33.
1
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
 THREE MONTHS ENDEDYEAR ENDED
 Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
Earned premiums$5,019 $4,910 $4,810 $4,651 $4,631 $4,565 $4,460 $4,343 $19,390 $17,999 
Fee income318 328 341 362 381 377 375 355 1,349 1,488 
Net investment income640 487 541 509 573 650 581 509 2,177 2,313 
Net realized gains (losses) 22 (166)(338)(145)212 70 147 80 (627)509 
Other revenues17 21 19 16 19 24 26 12 73 81 
Total revenues 6,016 5,580 5,373 5,393 5,816 5,686 5,589 5,299 22,362 22,390 
Benefits, losses and loss adjustment expenses3,540 3,408 3,076 3,118 3,173 3,420 2,786 3,350 13,142 12,729 
Amortization of deferred acquisition costs ("DAC")475 467 453 440 428 419 417 416 1,835 1,680 
Insurance operating costs and other expenses 1,198 1,203 1,222 1,207 1,233 1,200 1,202 1,144 4,830 4,779 
Interest expense50 50 51 62 62 58 57 57 213 234 
Amortization of other intangible assets18 18 17 18 18 18 17 18 71 71 
Restructuring and other costs [1]3 3 2 5 2 (12)— 11 13 1 
Total benefits, losses and expenses5,284 5,149 4,821 4,850 4,916 5,103 4,479 4,996 20,104 19,494 
Income before income taxes732 431 552 543 900 583 1,110 303 2,258 2,896 
Income tax expense143 92 110 98 171 101 205 54 443 531 
Net income589 339 442 445 729 482 905 249 1,815 2,365 
Preferred stock dividends 5 6 5 5 5 6 5 5 21 21 
Net income available to common stockholders584 333 437 440 724 476 900 244 1,794 2,344 
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized losses (gains), excluded from core earnings, before tax(22)166 336 146 (212)(68)(148)(77)626 (505)
Restructuring and other costs, before tax [1]3 3 2 5 2 (12)— 11 13 1 
Loss on extinguishment of debt, before tax— — 9 — — — — — 9 — 
Integration and other non-recurring M&A costs, before tax [2]5 5 6 5 5 8 36 9 21 58 
Change in deferred gain on retroactive reinsurance, before tax 229 — — — 173 28 39 6 229 246 
Income tax expense (benefit) [3](53)(36)(76)(35)5 10 9 10 (200)34 
Core earnings$746 $471 $714 $561 $697 $442 $836 $203 $2,492 $2,178 
[1]Represents restructuring costs related to the Company's Hartford Next operational transformation and cost reduction plan.
[2]Includes integration costs in connection with the 2019 acquisition of Navigators Group and 2017 acquisition of Aetna's group benefits business. The twelve months ended December 31, 2021 includes legal and consulting costs associated with the unsolicited proposals from Chubb Limited to acquire the Company.
[3]Primarily represents federal income tax expense (benefit) related to before tax items not included in core earnings.
2
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
OPERATING RESULTS BY SEGMENT
 THREE MONTHS ENDEDYEAR ENDED
 Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
Net income (loss):
Commercial Lines$566 $286 $389 $383 $702 $357 $569 $129 $1,624 $1,757 
Personal Lines44 (36)6 77 81 51 118 135 91 385 
Property & Casualty Other Operations ("P&C Other Operations")(184)6 (20)8 (121)22 17 (13)(190)(95)
Property & Casualty ("P&C")426 256 375 468 662 430 704 251 1,525 2,047 
Group Benefits140 86 104 (6)42 28 170 9 324 249 
Hartford Funds45 41 34 42 62 56 52 47 162 217 
Sub-total611 383 513 504 766 514 926 307 2,011 2,513 
Corporate (22)(44)(71)(59)(37)(32)(21)(58)(196)(148)
Net income 589 339 442 445 729 482 905 249 1,815 2,365 
Preferred stock dividends5 6 5 5 5 6 5 5 21 21 
Net income available to common stockholders$584 $333 $437 $440 $724 $476 $900 $244 $1,794 $2,344 
Core earnings (loss):
Commercial Lines$562 $363 $544 $456 $622 $344 $560 $105 $1,925 $1,631 
Personal Lines42 (28)21 84 70 48 113 131 119 362 
P&C Other Operations(5)10 (13)11 (2)20 15 (15)3 18 
P&C599 345 552 551 690 412 688 221 2,047 2,011 
Group Benefits141 117 161 8 (12)19 149 (3)427 153 
Hartford Funds39 47 44 50 60 58 51 45 180 214 
Sub-total779 509 757 609 738 489 888 263 2,654 2,378 
Corporate (33)(38)(43)(48)(41)(47)(52)(60)(162)(200)
Core earnings$746 $471 $714 $561 $697 $442 $836 $203 $2,492 $2,178 


3
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CONSOLIDATING BALANCE SHEETS
 PROPERTY & CASUALTYGROUP BENEFITSHARTFORD
FUNDS		CORPORATE [1]CONSOLIDATED
Dec 31 2022Dec 31 2021Dec 31 2022Dec 31 2021Dec 31 2022Dec 31 2021Dec 31 2022Dec 31 2021Dec 31 2022Dec 31 2021
Investments
Fixed maturities, available-for-sale ("AFS"), at fair value$28,222 $33,019 $7,736 $9,451 $— $— $273 $377 $36,231 $42,847 
Fixed maturities, at fair value using the fair value option275 124 58 36 — — — — 333 160 
Equity securities, at fair value1,194 1,410 308 338 115 116 184 230 1,801 2,094 
Mortgage loans, net4,346 3,908 1,654 1,475 — — — — 6,000 5,383 
Limited partnerships and other alternative investments3,311 2,689 866 664 — — — — 4,177 3,353 
Other investments137 165 7 9 15 29 — 12 159 215 
Short-term investments2,475 1,332 325 352 202 251 857 1,762 3,859 3,697 
Total investments39,960 42,647 10,954 12,325 332 396 1,314 2,381 52,560 57,749 
Cash193 176 27 15 6 3 3 11 229 205 
Restricted cash104 121 11 11 — — — — 115 132 
Premiums receivable and agents’ balances, net4,369 3,924 580 521 — — — — 4,949 4,445 
Reinsurance recoverables, net [2]6,455 5,997 250 250 — — 261 276 6,966 6,523 
Deferred policy acquisition costs ("DAC")966 843 32 31 4 7 — — 1,002 881 
Deferred income taxes 902 (22)71 (228)8 — 468 520 1,449 270 
Goodwill778 778 723 723 181 181 229 229 1,911 1,911 
Property and equipment, net808 883 57 71 9 11 53 62 927 1,027 
Other intangible assets370 410 398 438 10 10 — — 778 858 
Other assets1,356 1,856 188 285 85 112 507 324 2,136 2,577 
Total assets$56,261 $57,613 $13,291 $14,442 $635 $720 $2,835 $3,803 $73,022 $76,578 
Unpaid losses and loss adjustment expenses$33,083 $31,449 $8,160 $8,210 $— $— $— $— $41,243 $39,659 
Reserves for future policy benefits [2]— — 380 399 — — 181 197 561 596 
Other policyholder funds and benefits payable [2]— — 419 426 — — 239 261 658 687 
Unearned premiums7,779 7,154 36 40 — — — — 7,815 7,194 
Debt— — — — — — 4,357 4,944 4,357 4,944 
Other liabilities2,434 3,047 254 355 143 229 1,926 2,024 4,757 5,655 
Total liabilities43,296 41,650 9,249 9,430 143 229 6,703 7,426 59,391 58,735 
Common stockholders' equity, excluding AOCI*14,977 14,845 4,613 4,530 492 491 (2,909)(2,529)17,173 17,337 
Preferred stock— — — — — — 334 334 334 334 
AOCI, net of tax(2,012)1,118 (571)482 — — (1,293)(1,428)(3,876)172 
Total stockholders' equity12,965 15,963 4,042 5,012 492 491 (3,868)(3,623)13,631 17,843 
Total liabilities and stockholders' equity$56,261 $57,613 $13,291 $14,442 $635 $720 $2,835 $3,803 $73,022 $76,578 
[1]Corporate includes fixed maturities, short-term investments, investment sales receivable and cash of $1.0 billion and $1.9 billion as of December 31, 2022 and 2021, respectively, held by the holding company of The Hartford Financial Services Group, Inc. Corporate also includes investments held by Hartford Life and Accident Insurance Company ("HLA") that support reserves for run-off structured settlement and terminal funding agreement liabilities.
[2]Corporate includes retained reserves and reinsurance recoverables for the run-off life and annuity business sold.
4
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CAPITAL STRUCTURE
 Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
DEBT
Short-term debt $— $— $— $591 $— $— $— $— 
Senior notes3,858 3,857 3,856 3,855 3,854 $3,853 $3,264 $3,263 
Junior subordinated debentures499 499 499 499 1,090 1,090 1,090 1,090 
Total debt $4,357 $4,356 $4,355 $4,945 $4,944 $4,943 $4,354 $4,353 
STOCKHOLDERS’ EQUITY
Total stockholders’ equity$13,631 $12,955 $14,226 $15,897 $17,843 $17,862 $18,244 $17,702 
Less: Preferred stock334 334 334 334 334 334 334 334 
Less: AOCI(3,876)(4,414)(3,262)(1,699)172 307 570 264 
Common stockholders' equity, excluding AOCI$17,173 $17,035 $17,154 $17,262 $17,337 $17,221 $17,340 $17,104 
CAPITALIZATION
Total capitalization, including AOCI, net of tax$17,988 $17,311 $18,581 $20,842 $22,787 $22,805 $22,598 $22,055 
Total capitalization, excluding AOCI, net of tax*$21,864 $21,725 $21,843 $22,541 $22,615 $22,498 $22,028 $21,791 
DEBT TO CAPITALIZATION RATIOS
Total debt to capitalization, including AOCI24.2 %25.2 %23.4 %23.7 %21.7 %21.7 %19.3 %19.7 %
Total debt to capitalization, excluding AOCI*19.9 %20.1 %19.9 %21.9 %21.9 %22.0 %19.8 %20.0 %
Total debt and preferred stock to capitalization, including AOCI26.1 %27.1 %25.2 %25.3 %23.2 %23.1 %20.7 %21.3 %
Total debt and preferred stock to capitalization, excluding AOCI*21.5 %21.6 %21.5 %23.4 %23.3 %23.5 %21.3 %21.5 %
Total rating agency adjusted debt to capitalization [1] [2]25.7 %27.4 %25.7 %25.1 %23.1 %24.3 %22.0 %22.6 %
FIXED CHARGE COVERAGE RATIOS
Total earnings to total fixed charges [3]10.1:18.9:18.9:18.0:110.9:19.8:110.7:14.8:1
[1]The leverage calculation reflects adjustments related to the Company’s defined benefit plans' unfunded pension liability, the Company's rental expense on operating leases and uncollateralized letters of credit for Lloyd's of London for a total adjustment of $0.3 billion and $0.5 billion as of December 31, 2022 and 2021, respectively.
[2]Reflects 25% equity credit for the Company's outstanding junior subordinated debentures and 50% equity credit for the Company’s outstanding preferred stock.
[3]Calculated as year to date total earnings divided by year to date total fixed charges. Total earnings represent income before income taxes and total fixed charges (excluding the impact of preferred stock dividends), less undistributed earnings from limited partnerships and other alternative investments. Total fixed charges include interest expense, preferred stock dividends, interest factor attributable to rent expense, capitalized interest and amortization of debt issuance costs.
5
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
STATUTORY CAPITAL TO GAAP STOCKHOLDERS’ EQUITY RECONCILIATION
DECEMBER 31, 2022

P&C GROUP BENEFITS
U.S. statutory net income [1][2]$1,514 $378 
U.S. statutory capital [2][3]$12,111 $2,571 
U.S. GAAP adjustments [2]:
DAC929 32 
Non-admitted deferred tax assets [4]210 150 
Deferred taxes [5](10)(236)
Goodwill137 723 
Other intangible assets49 398 
Non-admitted assets other than deferred taxes845 74 
Asset valuation and interest maintenance reserve— 319 
Benefit reserves(98)345 
Unrealized gains (losses) on investments(2,490)(973)
Deferred gain on retroactive reinsurance agreements [6](760)— 
Other, net1,040 639 
U.S. GAAP stockholders’ equity of U.S. insurance entities [2]11,963 4,042 
U.S. GAAP stockholders’ equity of international subsidiaries as well as goodwill and other intangible assets related to the acquisition of Navigators Group1,002 — 
Total U.S. GAAP stockholders’ equity$12,965 $4,042 
[1]Statutory net income is for the year ended December 31, 2022.
[2]Excludes insurance operations based in the U.K.
[3]For reporting purposes, statutory capital and surplus is referred to collectively as "statutory capital".
[4]Represents the limitations on the recognition of deferred tax assets under U.S. statutory accounting principles ("U.S. STAT").
[5]Represents the tax timing differences between U.S. GAAP and U.S. STAT.
[6]Represents the deferred gain on retroactive reinsurance associated with U.S. entities for losses ceded to the Navigators and asbestos and environmental adverse development cover ("A&E ADC") agreements that is recognized within a special category of surplus under U.S. STAT but is recorded within other liabilities under U.S. GAAP.


6
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
 
 AS OF
 Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Net unrealized gain (loss) on fixed maturities, AFS$(2,594)$(3,038)$(1,858)$(266)$1,616 $1,930 $2,204 $1,909 
Unrealized loss on fixed maturities, AFS with allowance for credit losses ("ACL")
(7)(7)(2)(2)(2)(2)(2)(2)
Net gains on cash flow hedging instruments40 69 30 5 6 13 12 17 
Total net unrealized gain (loss)(2,561)(2,976)(1,830)(263)1,620 1,941 $2,214 $1,924 
Foreign currency translation adjustments31 14 33 41 41 42 46 44 
Pension and other postretirement plan adjustments(1,346)(1,452)(1,465)(1,477)(1,489)(1,676)(1,690)(1,704)
Total AOCI $(3,876)$(4,414)$(3,262)$(1,699)$172 $307 $570 $264 
7

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
INCOME STATEMENTS
THREE MONTHS ENDEDYEAR ENDED
 Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
Written premiums
$3,428 $3,583 $3,592 $3,516 $3,180 $3,297 $3,254 $3,218 $14,119 $12,949 
Change in unearned premium reserve(93)131 251 310 (71)104 172 249 599 454 
Earned premiums3,521 3,452 3,341 3,206 3,251 3,193 3,082 2,969 13,520 12,495 
Fee income 17 18 17 17 17 16 16 17 69 66 
Losses and loss adjustment expenses
Current accident year before catastrophes2,081 2,070 1,944 1,833 1,921 1,830 1,786 1,710 7,928 7,247 
Current accident year catastrophes [1]135 293 123 98 22 300 128 214 649 664 
Prior accident year development [2]183 (53)(58)(36)29 90 (149)229 36 199 
Total losses and loss adjustment expenses2,399 2,310 2,009 1,895 1,972 2,220 1,765 2,153 8,613 8,110 
Amortization of DAC466 456 441 428 417 405 404 402 1,791 1,628 
Underwriting expenses [3]598 610 606 577 608 588 561 544 2,391 2,301 
Amortization of other intangible assets8 8 7 8 8 8 7 8 31 31 
Dividends to policyholders 8 7 7 7 7 5 6 6 29 24 
Underwriting gain (loss)*59 79 288 308 256 (17)355 (127)734 467 
Net investment income469 360 407 382 427 487 442 378 1,618 1,734 
Net realized gains (losses)3 (110)(225)(104)136 57 56 53 (436)302 
Net servicing and other income (expense)2 3 2 (2)3 2 6 2 5 13 
Income before income taxes533 332 472 584 822 529 859 306 1,921 2,516 
Income tax expense107 76 97 116 160 99 155 55 396 469 
Net income426 256 375 468 662 430 704 251 1,525 2,047 
Adjustments to reconcile net income to core earnings:
Net realized losses (gains), excluded from core earnings, before tax(3)109 222 106 (139)(56)(56)(51)434 (302)
Integration and other non-recurring M&A costs, before tax3 3 4 3 4 5 4 7 13 20 
Change in deferred gain on retroactive reinsurance, before tax [2]229 — — — 173 28 39 6 229 246 
Income tax expense (benefit) [4](56)(23)(49)(26)(10)5 (3)8 (154)— 
Core earnings$599 $345 $552 $551 $690 $412 $688 $221 $2,047 $2,011 
ROE
Net income available to common stockholders [5] 12.7 %15.2 %15.7 %18.4 %15.3 %14.0 %13.8 %11.5 %
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized losses (gains), excluded from core earnings, before tax4.0 %2.8 %1.2 %(1.3 %)(2.4 %)(1.8 %)(1.2 %)(1.4 %)
Integration and other non-recurring M&A costs, before tax0.1 %0.1 %0.1 %0.1 %0.2 %0.2 %0.2 %0.3 %
Change in deferred gain on retroactive reinsurance, before tax [2]2.1 %1.6 %1.8 %2.1 %2.0 %2.4 %2.2 %2.6 %
Income tax expense (benefit) [4](1.4 %)(1.0 %)(0.7 %)(0.3 %)— %(0.3 %)(0.5 %)(0.4 %)
Impact of AOCI, excluded from core earnings ROE(0.9 %)(1.0 %)(0.2 %)0.6 %1.7 %1.8 %2.0 %0.7 %
Core earnings [5]16.6 %17.7 %17.9 %19.6 %16.8 %16.3 %16.5 %13.3 %
[1]The three months ended December 31, 2022 included $167 of net losses from Winter Storm Elliott, including $151 in Commercial Lines and $16 in Personal Lines. The $167 of losses from Winter Storm Elliott is net of a $35 reinsurance recoverable under the Company's per occurrence catastrophe treaty that covers 70% of up to $250 of losses in excess of $100 for one catastrophe event other than from earthquakes and named hurricanes and tropical storms, subject to a $50 annual aggregate deductible. The three months ended September 30, 2022 included $214 of losses, net of reinsurance, from Hurricane Ian, including $133 in Commercial Lines and $81 in Personal Lines.
[2]Prior accident year development does not include a benefit for the portion of ceded losses in excess of ceded premium paid under ADC agreements, which is recognized as a deferred gain under retroactive reinsurance accounting.
[3]The three months ended December 31, 2021 included a decrease in the ACL on premiums receivable of $20 primarily due to lower than previously estimated receivables from loss sensitive business within middle and large commercial. The twelve months ended December 31, 2021 included a decrease in the ACL on premiums receivable of $42, primarily related to the lessening impacts of COVID-19.
[4]Primarily represents federal income tax expense (benefit) related to before tax items not included in core earnings.
[5]Net income ROE and Core earnings ROE are calculated by allocating a portion of debt, interest expense, preferred stock and preferred stock dividends accounted for within Corporate to Property & Casualty.
8
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
INCOME STATEMENTS (CONTINUED)
 THREE MONTHS ENDEDYEAR ENDED
Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
UNFAVORABLE (FAVORABLE) PRIOR ACCIDENT YEAR DEVELOPMENT
Workers’ compensation$(61)$(58)$(40)$(45)$(77)$(30)$(43)$(40)$(204)$(190)
Workers' compensation discount accretion9 9 9 9 9 8 9 9 36 35 
General liability [1]23 — 21 12 3 144 — 307 56 454 
Marine— 5 (3)— 1 (1)(5)6 2 1 
Package business(4)(11)(13)(11)(25)(20)(19)(27)(39)(91)
Commercial property6 4 (6)(15)(2)(4)(7)(13)(11)(26)
Professional liability(2)— (9)— 5 — (6)(1)(11)(2)
Bond(28)— (4)— — (12)(14)— (32)(26)
Assumed reinsurance7 — — 12 (6)— (2)2 19 (6)
Automobile liability - Commercial Lines15 11 12 — — 9 — — 38 9 
Automobile liability - Personal Lines— (9)— (5)(17)(30)(20)(23)(14)(90)
Homeowners1 (2)— — 1 1 4 (3)(1)3 
Net asbestos and environmental reserves [2]— — — — — — — — — — 
Catastrophes(30)(2)(27)(3)(56)— (82)(16)(62)(154)
Uncollectible reinsurance— (3)6 — 4 — (1)(9)3 (6)
Other reserve re-estimates [3]18 3 (4)10 16 (3)(2)31 27 42 
Prior accident year development before change in deferred gain(46)(53)(58)(36)(144)62 (188)223 (193)(47)
Change in deferred gain on retroactive reinsurance included in other liabilities [2] [4]229 — — — 173 28 39 6 229 246 
Total prior accident year development$183 $(53)$(58)$(36)$29 $90 $(149)$229 $36 $199 
[1]The year ended December 31, 2021 included an increase in reserves related to an agreement in principle with the Boy Scouts of America under which The Hartford will pay $787, before tax, to settle sexual molestation and sexual abuse claims.
[2]A&E reserves were reviewed in fourth quarter 2022 and 2021, resulting in an increase in reserves before ADC reinsurance of $229 and $155, respectively, which were ceded to the A&E ADC resulting in a deferred gain on retroactive reinsurance. For 2022 and 2021, this included an increase in asbestos reserves of $162 and $106, respectively, and an increase in environmental reserves of $67 and $49, respectively. As of December 31, 2022 the Company has incurred $1,244 in cumulative adverse development on A&E reserves that have been ceded under the A&E ADC treaty with $256 of available limit remaining. The Company has recorded a cumulative deferred gain of $594 as of December 31, 2022 within other liabilities, representing the amount of losses ceded to the ADC in excess of ceded premium paid. See [4] below.
[3]Other reserve re-estimates for the three months ended December 31, 2022 primarily includes a $22 increase in unallocated loss adjustment expense ("ULAE") reserves within P&C Other Operations driven by the increase in gross asbestos and environmental reserves discussed in [2] above.
[4]The three and twelve months ended December 31, 2021 also included an increase in deferred gain on retroactive reinsurance of $18 and $91, respectively, relating to ceding losses to the Navigators ADC, which reinsures adverse development on Navigators' 2018 and prior accident year reserves. As of December 31, 2022, the Company has cumulatively ceded all of the $300 available limit of losses to the Navigators ADC, of which $209 has been recognized as a deferred gain within other liabilities. Any net adverse loss development above the $300 limit is reflected in the Company's core earnings.
9
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PROPERTY & CASUALTY
UNDERWRITING RATIOS
THREE MONTHS ENDEDYEAR ENDED
 Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
UNDERWRITING GAIN (LOSS)$59 $79 $288 $308 $256 $(17)$355 $(127)$734 $467 
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes 59.1 60.0 58.2 57.2 59.1 57.3 57.9 57.6 58.6 58.0 
Current accident year catastrophes3.8 8.5 3.7 3.1 0.7 9.4 4.2 7.2 4.8 5.3 
Prior accident year development [1]5.2 (1.5)(1.7)(1.1)0.9 2.8 (4.8)7.7 0.3 1.6 
Total losses and loss adjustment expenses68.1 66.9 60.1 59.1 60.7 69.5 57.3 72.5 63.7 64.9 
Expenses [2] [3]30.0 30.6 31.0 31.1 31.3 30.8 31.0 31.6 30.7 31.2 
Policyholder dividends0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 
Combined ratio98.3 97.7 91.4 90.4 92.1 100.5 88.5 104.3 94.6 96.3 
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development(9.0)(7.0)(2.0)(2.0)(1.6)(12.2)0.6 (14.9)(5.1)(6.9)
Underlying combined ratio *89.3 90.8 89.4 88.5 90.6 88.3 89.2 89.4 89.5 89.4 
[1]See [2] and [4] on page 9 for discussion related to the deferred gain on retroactive reinsurance.
[2]Integration and transaction costs related to the acquisition of Navigators Group are not included in the expense ratio.
[3]The three and twelve months ended December 31, 2021 included a decrease in the ACL on premiums receivable of $20 and $42 respectively, representing 0.6 points and 0.3 points of the expense ratio, respectively.
10
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMMERCIAL LINES
INCOME STATEMENTS
THREE MONTHS ENDEDYEAR ENDED
 Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
Written premiums $2,733 $2,780 $2,836 $2,809 $2,512 $2,532 $2,494 $2,503 $11,158 $10,041 
Change in unearned premium reserve(34)77 221 323 (1)83 150 268 587 500 
Earned premiums2,767 2,703 2,615 2,486 2,513 2,449 2,344 2,235 10,571 9,541 
Fee income10 10 10 9 9 8 8 9 39 34 
Losses and loss adjustment expenses
Current accident year before catastrophes1,542 1,555 1,467 1,395 1,421 1,351 1,339 1,296 5,959 5,407 
Current accident year catastrophes [1]114 179 67 81 6 222 93 175 441 496 
Prior accident year development [2](68)(42)(88)(33)(114)122 (105)238 (231)141 
Total losses and loss adjustment expenses1,588 1,692 1,446 1,443 1,313 1,695 1,327 1,709 6,169 6,044 
Amortization of DAC408 399 385 371 360 348 346 344 1,563 1,398 
Underwriting expenses 461 455 447 425 447 432 405 394 1,788 1,678 
Amortization of other intangible assets8 7 7 7 8 7 7 7 29 29 
Dividends to policyholders8 7 7 7 7 5 6 6 29 24 
Underwriting gain (loss)304 153 333 242 387 (30)261 (216)1,032 402 
Net investment income411 315 356 333 372 421 382 327 1,415 1,502 
Net realized gains (losses)(1)(95)(198)(91)118 51 47 44 (385)260 
Other income (expense) [3](2)(3)(1)(6)(1)(3)1 (2)(12)(5)
Income before income taxes712 370 490 478 876 439 691 153 2,050 2,159 
Income tax expense146 84 101 95 174 82 122 24 426 402 
Net income566 286 389 383 702 357 569 129 1,624 1,757 
Adjustments to reconcile net income to core earnings:
Net realized losses (gains), excluded from core earnings, before tax1 95 194 93 (120)(50)(47)(43)383 (260)
Integration and other non-recurring M&A costs, before tax [3]3 3 4 3 4 5 4 7 13 20 
Change in deferred gain on retroactive reinsurance, before tax— — — — 18 28 39 6 — 91 
Income tax expense (benefit) [4](8)(21)(43)(23)18 4 (5)6 (95)23 
Core earnings$562 $363 $544 $456 $622 $344 $560 $105 $1,925 $1,631 
[1]Refer to [1] on page 8 for information about catastrophe losses related to Winter Storm Elliott in the three months ended December 31, 2022 and Hurricane Ian for the three months ended September 30, 2022.
[2]Refer to [4] on page 9 for discussion related to the deferred gain on retroactive reinsurance.
[3]Includes Navigators Group integration costs.
[4]Primarily represents federal income tax expense (benefit) related to before tax items not included in core earnings.
11
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMMERCIAL LINES
INCOME STATEMENTS (CONTINUED)



Prior accident year development included the following unfavorable (favorable) reserve development:
 THREE MONTHS ENDEDYEAR ENDED
 Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
Workers’ compensation$(61)$(58)$(40)$(45)$(77)$(30)$(43)$(40)$(204)$(190)
Workers' compensation discount accretion9 9 9 9 9 8 9 9 36 35 
General liability [1]23 — (10)12 3 144 — 307 25 454 
Marine— 5 (3)— 1 (1)(5)6 2 1 
Package business(4)(11)(13)(11)(25)(20)(19)(27)(39)(91)
Commercial property6 4 (6)(15)(2)(4)(7)(13)(11)(26)
Professional liability(2)— (9)— 5 — (6)(1)(11)(2)
Bond(28)— (4)— — (12)(14)— (32)(26)
Assumed Reinsurance7 — — 12 (6)— (2)2 19 (6)
Auto liability15 11 12 — — 9 — — 38 9 
Catastrophes(29)(2)(26)(3)(40)— (53)(4)(60)(97)
Uncollectible reinsurance— (1)— — — — — (5)(1)(5)
Other reserve re-estimates(4)1 2 8 — — (4)(2)7 (6)
Prior accident year development before change in deferred gain(68)(42)(88)(33)(132)94 (144)232 (231)50 
Change in deferred gain on retroactive reinsurance included in other liabilities [2]— — — — 18 28 39 6 — 91 
Total prior accident year development$(68)$(42)$(88)$(33)$(114)$122 $(105)$238 $(231)$141 
[1]See [1] on page 9 for discussion related to general liability prior year development.
[2]See [4] on page 9 for discussion related to the deferred gain on retroactive reinsurance. The change in deferred gain on retroactive reinsurance relates to ceding losses to the Navigators ADC in excess of ceded premium paid resulting in a deferred reinsurance benefit.
12
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMMERCIAL LINES
UNDERWRITING RATIOS 
THREE MONTHS ENDEDYEAR ENDED
 Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
UNDERWRITING GAIN (LOSS)$304 $153 $333 $242 $387 $(30)$261 $(216)$1,032 $402 
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes 55.7 57.5 56.1 56.1 56.5 55.2 57.1 58.0 56.4 56.7 
Current accident year catastrophes4.1 6.6 2.6 3.3 0.2 9.1 4.0 7.8 4.2 5.2 
Prior accident year development [1](2.5)(1.6)(3.4)(1.3)(4.5)5.0 (4.5)10.6 (2.2)1.5 
Total losses and loss adjustment expenses57.4 62.6 55.3 58.0 52.2 69.2 56.6 76.5 58.4 63.3 
Expenses [2] [3]31.3 31.5 31.7 31.9 32.1 31.8 32.0 32.9 31.6 32.2 
Policyholder dividends0.3 0.3 0.3 0.3 0.3 0.2 0.3 0.3 0.3 0.3 
Combined ratio [4]89.0 94.3 87.3 90.3 84.6 101.2 88.9 109.7 90.2 95.8 
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development(1.6)(5.0)0.8 (2.0)4.3 (14.1)0.5 (18.4)(2.0)(6.7)
Underlying combined ratio 87.4 89.3 88.1 88.3 88.9 87.2 89.4 91.2 88.3 89.1 
COMBINED RATIOS BY LINE OF BUSINESS
SMALL COMMERCIAL
Combined ratio89.4 89.3 85.2 82.9 79.0 84.5 83.6 95.4 86.8 85.3 
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes(6.3)(5.3)(3.0)(1.9)(0.2)(5.0)(3.8)(12.1)(4.2)(5.1)
Prior accident year development4.5 4.4 4.7 4.9 9.2 4.4 7.2 5.0 4.6 6.5 
Underlying combined ratio 87.5 88.5 86.9 85.9 88.0 83.9 87.0 88.3 87.2 86.7 
MIDDLE & LARGE COMMERCIAL
Combined ratio91.8 100.7 95.6 94.6 83.5 108.0 92.9 98.9 95.7 95.7 
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes(3.1)(6.6)(2.0)(2.3)2.1 (16.3)(5.8)(7.0)(3.5)(6.7)
Prior accident year development1.5 (0.4)(0.8)(0.9)4.4 (0.4)4.4 3.3 (0.1)2.9 
Underlying combined ratio90.2 93.7 92.9 91.5 90.0 91.4 91.5 95.3 92.1 92.0 
GLOBAL SPECIALTY
Combined ratio [4]84.1 94.2 85.0 96.9 94.8 97.1 91.9 92.4 89.9 94.1 
Adjustments to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes(1.9)(9.0)(2.8)(6.9)(3.5)(6.2)(1.8)(2.2)(5.1)(3.5)
Prior accident year development [1]0.7 (0.6)0.9 (1.8)(2.5)(4.0)0.1 (0.3)(0.2)(1.7)
Underlying combined ratio83.0 84.5 83.1 88.2 88.8 86.9 90.3 89.9 84.6 88.9 
[1]See [4] on page 9 for discussion related to the change in deferred gain on retroactive reinsurance for the three and twelve months ended December 31, 2021.
[2]Integration and transaction costs related to the acquisition of Navigators Group are not included in the expense ratio.
[3]The three and twelve months ended December 31, 2021 included a before tax decrease in the ACL on premiums receivable including the lessening impacts of COVID-19 of $20 and $39, respectively, representing 0.8 points and 0.4 points, respectively, of the expense ratio.
[4]The three and twelve months ended December 31, 2021 included a change in deferred gain on retroactive reinsurance related to the Navigators ADC representing 0.7 and 1.0 points, respectively, of the Commercial Lines combined ratio and 2.9 points and 3.8 points, respectively, of the global specialty combined ratio.
13
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMMERCIAL LINES
SUPPLEMENTAL DATA
THREE MONTHS ENDEDYEAR ENDED
Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
WRITTEN PREMIUMS
Small Commercial$1,130 $1,131 $1,145 $1,180 $1,025 $1,012 $977 $1,053 $4,586 $4,067 
Middle & Large Commercial911 979 907 853 847 884 817 775 3,650 3,323 
Middle Market773 856 785 724 722 765 720 662 3,138 2,869 
National Accounts and Other138 123 122 129 125 119 97 113 512 454 
Global Specialty [1]681 659 772 764 629 625 689 665 2,876 2,608 
U.S.466 466 516 466 457 452 466 421 1,914 1,796 
International110 92 103 91 109 81 113 110 396 413 
Global Re105 101 153 207 63 92 110 134 566 399 
Other11 11 12 12 11 11 11 10 46 43 
Total$2,733 $2,780 $2,836 $2,809 $2,512 $2,532 $2,494 $2,503 $11,158 $10,041 
EARNED PREMIUMS
Small Commercial$1,147 $1,117 $1,081 $1,034 $1,043 $1,015 $956 $916 $4,379 $3,930 
Middle & Large Commercial915 896 855 828 840 820 788 752 3,494 3,200 
Middle Market788 774 733 717 725 704 682 653 3,012 2,764 
National Accounts and Other127 122 122 111 115 116 106 99 482 436 
Global Specialty [1]695 678 666 613 619 604 589 556 2,652 2,368 
U.S.472 460 450 426 434 421 406 386 1,808 1,647 
International93 99 98 87 97 95 99 102 377 393 
Global Re130 119 118 100 88 88 84 68 467 328 
Other10 12 13 11 11 10 11 11 46 43 
Total$2,767 $2,703 $2,615 $2,486 $2,513 $2,449 $2,344 $2,235 $10,571 $9,541 
COMMERCIAL LINES STATISTICAL PREMIUM INFORMATION
Small Commercial
Net New Business Premium$191 $190 $201 $186 $162 $165 $170 $176 $768 $673 
Renewal Written Price Increases4.5 %4.0 %3.4 %3.2 %3.6 %3.4 %3.2 %2.4 %3.8 %3.2 %
Policy Count Retention [2]86 %86 %85 %86 %85 %84 %84 %84 %86 %84 %
Policies in Force (in thousands)1,421 1,411 1,395 1,378 1,366 1,352 1,329 1,304 
Middle Market [3]
Net New Business Premium$131 $150 $130 $120 $124 $139 $147 $122 $531 $532 
Renewal Written Price Increases6.7 %6.4 %5.2 %5.1 %5.8 %5.7 %6.2 %6.1 %5.9 %5.9 %
Policy Count Retention [2]84 %83 %84 %84 %83 %84 %82 %80 %84 %82 %
Global Specialty
Gross New Business Premium [4]$192 $201 $226 $206 $225 $234 $237 $216 $825 $912 
Renewal Written Price Increases [5]3.2 %4.3 %6.7 %9.7 %10.1 %11.9 %14.8 %18.5 %5.9 %13.6 %
[1]U.S. business includes a small amount of business issued by U.S. insurance entities to U.S. policyholders with international-based exposures ("multinational exposure"). International represents Navigators Group business written in either Lloyd's market or other international markets, which includes U.S.-based exposures.
[2]Policy count retention represents the ratio of the number of renewal policies issued during the current year period divided by the number of policies issued in the previous calendar period before considering policies cancelled subsequent to renewal.
[3]Except for net new business premium, metrics for Middle Market exclude loss sensitive and programs businesses.
[4]Excludes Global Re and Continental Europe Operations and is before ceded reinsurance.
[5]Excludes Global Re, offshore energy policies, credit and political risk insurance policies, political violence and terrorism policies, and any business under which the managing agent of our Lloyd's Syndicate 1221 delegates underwriting authority to coverholders and other third parties.
14
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PERSONAL LINES
INCOME STATEMENTS
 THREE MONTHS ENDEDYEAR ENDED
Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
Written premiums$695 $803 $756 $707 $668 $765 $760 $715 $2,961 $2,908 
Change in unearned premium reserve(59)54 30 (13)(70)21 22 (19)12 (46)
Earned premiums754 749 726 720 738 744 738 734 2,949 2,954 
Fee income 7 8 7 8 8 8 8 8 30 32 
Losses and loss adjustment expenses
Current accident year before catastrophes539 515 477 438 500 479 447 414 1,969 1,840 
Current accident year catastrophes [1]21 114 56 17 16 78 35 39 208 168 
Prior accident year development 1 (11)— (3)(31)(27)(44)(42)(13)(144)
Total losses and loss adjustment expenses561 618 533 452 485 530 438 411 2,164 1,864 
Amortization of DAC58 57 56 57 57 57 58 58 228 230 
Underwriting expenses135 153 157 149 159 154 154 148 594 615 
Amortization of other intangible assets— 1 — 1 — 1 — 1 2 2 
Underwriting gain (loss)7 (72)(13)69 45 10 96 124 (9)275 
Net investment income41 31 35 33 38 44 40 35 140 157 
Net realized gains (losses)3 (11)(18)(9)12 4 6 7 (35)29 
Net servicing and other income (expense)4 6 3 4 5 5 5 4 17 19 
Income (loss) before income taxes55 (46)7 97 100 63 147 170 113 480 
Income tax expense (benefit)11 (10)1 20 19 12 29 35 22 95 
Net income (loss)44 (36)6 77 81 51 118 135 91 385 
Adjustments to reconcile net income (loss) to core earnings (loss):
Net realized losses (gains), excluded from core earnings, before tax(3)10 19 9 (13)(4)(6)(6)35 (29)
Income tax expense (benefit) [2]1 (2)(4)(2)2 1 1 2 (7)6 
Core earnings (loss)$42 $(28)$21 $84 $70 $48 $113 $131 $119 $362 
[1]Refer to [1] on page 8 for information about catastrophe losses related to Winter Storm Elliott in the three months ended December 31, 2022 and Hurricane Ian for the three months ended September 30, 2022.
[2]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.
15
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PERSONAL LINES
INCOME STATEMENTS (CONTINUED)


Prior accident year development included the following unfavorable (favorable) reserve development:
 THREE MONTHS ENDEDYEAR ENDED
 Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
Auto liability$— $(9)$— $(5)$(17)$(30)$(20)$(23)$(14)$(90)
Homeowners1 (2)— — 1 1 4 (3)(1)3 
Catastrophes(1)— (1)— (16)— (29)(12)(2)(57)
Uncollectible Reinsurance— (2)— — — — — — (2)— 
Other reserve re-estimates, net1 2 1 2 1 2 1 (4)6 — 
Total prior accident year development$1 $(11)$— $(3)$(31)$(27)$(44)$(42)$(13)$(144)

16
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PERSONAL LINES
UNDERWRITING RATIOS
 THREE MONTHS ENDEDYEAR ENDED
 Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
UNDERWRITING GAIN (LOSS)$7 $(72)$(13)$69 $45 $10 $96 $124 $(9)$275 
UNDERWRITING RATIOS
Losses and loss adjustment expenses
Current accident year before catastrophes71.5 68.8 65.7 60.8 67.8 64.4 60.6 56.4 66.8 62.3 
Current accident year catastrophes2.8 15.2 7.7 2.4 2.2 10.5 4.7 5.3 7.1 5.7 
Prior accident year development0.1 (1.5)— (0.4)(4.2)(3.6)(6.0)(5.7)(0.4)(4.9)
Total losses and loss adjustment expenses74.4 82.5 73.4 62.8 65.7 71.2 59.3 56.0 73.4 63.1 
Expenses24.7 27.1 28.4 27.6 28.2 27.4 27.6 27.1 26.9 27.6 
Combined ratio99.1 109.6 101.8 90.4 93.9 98.7 87.0 83.1 100.3 90.7 
Adjustment to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes and prior accident year development
(2.9)(13.7)(7.7)(2.0)2.0 (6.9)1.3 0.4 (6.7)(0.8)
Underlying combined ratio96.2 95.9 94.1 88.5 95.9 91.8 88.2 83.5 93.7 89.9 
PRODUCT
Automobile
Combined ratio108.6 113.2 101.2 92.8 102.4 96.5 89.2 83.5 104.1 92.9 
Adjustment to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes(0.1)(11.9)(1.4)(0.3)(0.4)(2.3)(1.3)(0.5)(3.5)(1.1)
Prior accident year development0.3 1.4 0.2 0.9 3.4 5.5 4.2 3.3 0.7 4.1 
Underlying combined ratio108.9 102.6 100.0 93.3 105.4 99.7 92.1 86.3 101.3 95.9 
Homeowners
Combined ratio78.1 102.6 103.1 85.2 74.8 103.4 82.0 86.8 92.2 86.8 
Adjustment to reconcile combined ratio to underlying combined ratio:
Current accident year catastrophes(8.8)(22.6)(21.2)(7.0)(6.0)(28.3)(12.8)(15.9)(14.9)(15.8)
Prior accident year development(1.0)0.4 0.1 (0.8)6.2 (0.5)10.0 6.3 (0.3)5.5 
Underlying combined ratio68.3 80.4 82.0 77.4 75.1 74.6 79.2 77.2 77.0 76.5 

17
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PERSONAL LINES
SUPPLEMENTAL DATA

 THREE MONTHS ENDEDYEAR ENDED
 Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
DISTRIBUTION
WRITTEN PREMIUMS
AARP Direct$596 $698 $655 $610 $566 $659 $653 $612 $2,559 $2,490 
AARP Agency50 50 50 48 50 51 51 51 198 203 
Other Agency44 48 46 43 45 49 50 45 181 189 
Other5 7 5 6 7 6 6 7 23 26 
Total$695 $803 $756 $707 $668 $765 $760 $715 $2,961 $2,908 
EARNED PREMIUMS
AARP Direct$653 $645 $625 $617 $631 $635 $629 $623 $2,540 $2,518 
AARP Agency50 50 50 50 52 52 53 53 200 210 
Other Agency45 46 46 47 48 49 50 51 184 198 
Other6 8 5 6 7 8 6 7 25 28 
Total$754 $749 $726 $720 $738 $744 $738 $734 $2,949 $2,954 
PRODUCT LINE
WRITTEN PREMIUMS
Automobile$473 $541 $509 $497 $458 $516 $515 $508 $2,020 $1,997 
Homeowners222 262 247 210 210 249 245 207 941 911 
Total$695 $803 $756 $707 $668 $765 $760 $715 $2,961 $2,908 
EARNED PREMIUMS
Automobile$519 $516 $497 $493 $508 $511 $509 $507 $2,025 $2,035 
Homeowners235 233 229 227 230 233 229 227 924 919 
Total$754 $749 $726 $720 $738 $744 $738 $734 $2,949 $2,954 

18
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
PERSONAL LINES
SUPPLEMENTAL DATA (CONTINUED)
 THREE MONTHS ENDEDYEAR ENDED
 Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
STATISTICAL PREMIUM INFORMATION (YEAR OVER YEAR)
Net New Business Premium
Automobile$41 $71 $57 $58 $52 $58 $56 $53 $227 $219 
Homeowners$18 $22 $19 $15 $14 $17 $16 $13 $74 $60 
Renewal Written Price Increases
Automobile6.3 %5.0 %4.0 %2.9 %2.6 %2.1 %2.3 %1.8 %4.5 %2.2 %
Homeowners13.3 %11.8 %9.0 %8.8 %8.1 %8.1 %8.5 %9.4 %10.7 %8.5 %
Policy Count Retention [1]
Automobile85 %85 %84 %84 %84 %84 %85 %85 %84 %84 %
Homeowners84 %84 %84 %84 %84 %84 %85 %85 %84 %85 %
Policies in Force (in thousands)
Automobile1,323 1,331 1,315 1,315 1,317 1,328 1,339 1,357 
Homeowners740 749 756 765 773 786 799 815 
[1]Policy count retention represents the ratio of the number of renewal policies issued during the current year period divided by the number of policies issued in the previous calendar period before considering policies cancelled subsequent to renewal.

19
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
P&C OTHER OPERATIONS
INCOME STATEMENTS
 
THREE MONTHS ENDEDYEAR ENDED
 Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
Losses and loss adjustment expenses
Prior accident year development [1] [2]$250 $— $30 $— $174 $(5)$— $33 $280 $202 
Total losses and loss adjustment expenses250 — 30 — 174 (5)— 33 280 202 
Underwriting expenses2 2 2 3 2 2 2 2 9 8 
Underwriting gain (loss)(252)(2)(32)(3)(176)3 (2)(35)(289)(210)
Net investment income17 14 16 16 17 22 20 16 63 75 
Net realized gains (losses)1 (4)(9)(4)6 2 3 2 (16)13 
Other expense— — — — (1)— — — — (1)
Income (loss) before income taxes(234)8 (25)9 (154)27 21 (17)(242)(123)
Income tax expense (benefit)(50)2 (5)1 (33)5 4 (4)(52)(28)
Net income (loss)(184)6 (20)8 (121)22 17 (13)(190)(95)
Adjustments to reconcile net income (loss) to core earnings (loss):
Net realized losses (gains), excluded from core earnings, before tax(1)4 9 4 (6)(2)(3)(2)16 (13)
Change in deferred gain on retroactive reinsurance, before tax229 — — — 155 — — — 229 155 
Income tax expense (benefit) [3](49)— (2)(1)(30)— 1 — (52)(29)
Core earnings (loss)$(5)$10 $(13)$11 $(2)$20 $15 $(15)$3 $18 
[1]A&E reserves were reviewed in fourth quarter 2022 resulting in a $229 increase in reserves in P&C Other Operations, including $161 for asbestos and $68 for environmental. The Company recognized a $229 deferred gain on retroactive reinsurance, all recorded within P&C Other Operations, as cumulative losses ceded to the A&E ADC exceed the $650 of ceded premium paid for the cover. See [2] and [4] on page 9 for additional discussion related to the deferred gain on retroactive reinsurance, including discussion of the reserve increase in fourth quarter 2021.
[2]Refer to note [3] on page 9 for a discussion of an increase in ULAE reserves in the three months ended December 31, 2022.
[3]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.

















20

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
GROUP BENEFITS
INCOME STATEMENTS
 THREE MONTHS ENDEDYEAR ENDED
 Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
Earned premiums$1,498 $1,458 $1,469 $1,445 $1,380 $1,372 $1,378 $1,374 $5,870 $5,504 
Fee income48 46 48 45 47 43 49 44 187 183 
Net investment income154 117 130 123 128 159 136 127 524 550 
Net realized gains (losses)1 (37)(70)(16)70 13 28 19 (122)130 
Total revenues1,701 1,584 1,577 1,597 1,625 1,587 1,591 1,564 6,459 6,367 
Benefits, losses and loss adjustment expenses [1]1,138 1,096 1,065 1,221 1,198 1,199 1,019 1,196 4,520 4,612 
Amortization of DAC7 8 9 9 8 11 10 11 33 40 
Insurance operating costs and other expenses371 364 365 367 358 336 340 339 1,467 1,373 
Amortization of other intangible assets10 10 10 10 10 10 10 10 40 40 
Total benefits, losses and expenses1,526 1,478 1,449 1,607 1,574 1,556 1,379 1,556 6,060 6,065 
Income (loss) before income taxes175 106 128 (10)51 31 212 8 399 302 
Income tax expense (benefit)35 20 24 (4)9 3 42 (1)75 53 
Net income (loss)140 86 104 (6)42 28 170 9 324 249 
Adjustments to reconcile net income (loss) to core earnings (loss):
Net realized losses (gains), excluded from core earnings, before tax(2)38 70 16 (70)(13)(28)(18)122 (129)
Integration and other non-recurring M&A costs, before tax2 2 2 2 1 1 2 2 8 6 
Income tax expense (benefit) [2]1 (9)(15)(4)15 3 5 4 (27)27 
Core earnings (loss)$141 $117 $161 $8 $(12)$19 $149 $(3)$427 $153 
Margin
Net income margin8.2 %5.4 %6.6 %(0.4 %)2.6 %1.8 %10.7 %0.6 %5.0 %3.9 %
Core earnings margin*8.3 %7.2 %9.8 %0.5 %(0.8 %)1.2 %9.5 %(0.2 %)6.5 %2.5 %
ROE
Net income available to common stockholders [3]8.2 %5.4 %3.3 %5.1 %5.0 %5.4 %7.6 %6.4 %
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized losses (gains), excluded from core earnings, before tax3.6 %1.6 %0.1 %(2.6 %)(3.2 %)(1.9 %)(1.8 %)(1.2 %)
Integration and other non-recurring M&A costs, before tax0.2 %0.2 %0.2 %0.2 %0.1 %0.2 %0.3 %0.4 %
Income tax expense (benefit) [2](0.8 %)(0.4 %)— %0.5 %0.7 %0.4 %0.3 %0.2 %
Impact of AOCI, excluded from core earnings ROE(0.3 %)(0.2 %)0.1 %0.3 %0.5 %0.8 %1.1 %0.5 %
Core earnings [3]10.9 %6.6 %3.7 %3.5 %3.1 %4.9 %7.5 %6.3 %
[1]Includes an increase in incurred losses from excess mortality, primarily caused by direct and indirect impacts of COVID-19, of $43 and $161, respectively, for the three months ended December 31, 2022 and 2021 and $160 and $583, respectively, for the twelve months ended December 31, 2022 and 2021. The $43 of excess mortality losses in the fourth quarter of 2022 included $41 of losses with dates of loss in the fourth quarter as well as a $2 unfavorable change of estimated losses related to prior quarters. Also includes COVID-19 related losses from short-term disability of $3 and $8, respectively, for the three months ended December 31, 2022 and 2021 and $12 and $31, respectively, for the twelve months ended December 31, 2022 and 2021.
[2]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.
[3]Net income ROE and core earnings ROE are calculated by allocating a portion of debt, interest expense, preferred stock and preferred stock dividends accounted for within Corporate to Group Benefits.
21

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
GROUP BENEFITS
SUPPLEMENTAL DATA
 
THREE MONTHS ENDEDYEAR ENDED
Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
PREMIUMS
Fully insured ongoing premiums
Group disability$805 $772 $780 $754 $708 $702 $696 $693 $3,111 $2,799 
Group life 604 593 599 597 591 591 603 602 2,393 2,387 
Other [1]89 88 90 87 81 79 79 77 354 316 
Total fully insured ongoing premiums1,498 1,453 1,469 1,438 1,380 1,372 1,378 1,372 5,858 5,502 
Total buyouts [2]— 5 — 7 — — — 2 12 2 
Total premiums$1,498 $1,458 $1,469 $1,445 $1,380 $1,372 $1,378 $1,374 $5,870 $5,504 
SALES (GROSS ANNUALIZED NEW PREMIUMS)
Fully insured ongoing sales
Group disability$67 $51 $123 $222 $35 $35 $44 $321 $463 $435 
Group life21 41 70 125 23 31 43 151 257 248 
Other [1]14 14 11 42 9 16 12 40 81 77 
Total fully insured ongoing sales102 106 204 389 67 82 99 512 801 760 
Total buyouts [2]— 5 — 7 — — — 2 12 2 
Total sales$102 $111 $204 $396 $67 $82 $99 $514 $813 $762 
RATIOS, EXCLUDING BUYOUTS
Group disability loss ratio [3]65.5 %68.4 %66.3 %73.2 %71.6 %68.4 %64.2 %68.4 %68.3 %68.2 %
Group life loss ratio [4]89.6 %83.1 %78.9 %98.4 %105.0 %110.9 %83.6 %108.3 %87.5 %101.9 %
Total loss ratio73.6 %72.8 %70.2 %81.9 %84.0 %84.7 %71.4 %84.3 %74.6 %81.1 %
Expense ratio [5]25.0 %25.4 %25.2 %25.9 %26.3 %25.2 %25.1 %25.3 %25.3 %25.5 %
[1]Includes other group coverages such as retiree health insurance, critical illness, accident and hospital indemnity coverages.
[2]Takeover of open claim liabilities and other non-recurring premium amounts.
[3]Includes losses on short-term disability claims related to COVID-19 of 0.4 points and 1.1 points, respectively, for the three months ended December 31, 2022 and 2021 and 0.4 points and 1.0 points, respectively, for the twelve months ended December 31, 2022 and 2021.
[4]Includes an increase in incurred losses from excess mortality, primarily caused by direct and indirect impacts of COVID-19, of 7.1 points and 27.2 points, respectively, for the three months ended December 31, 2022 and 2021 and 6.7 points and 24.4 points, respectively, for the twelve months ended December 31, 2022 and 2021.
[5]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.
22


THE HARTFORD FINANCIAL SERVICES GROUP, INC.
HARTFORD FUNDS
INCOME STATEMENTS
 THREE MONTHS ENDEDYEAR ENDED
 Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
Investment management fees $183 $190 $198 $216 $230 $229 $221 $208 $787 $888 
Shareowner servicing fees 21 21 23 25 25 26 25 24 90 100 
Other revenue41 45 43 47 52 53 50 51 176 206 
Net realized gains (losses)7 (9)(13)(9)3 (3)2 2 (24)4 
Total revenues 252 247 251 279 310 305 298 285 1,029 1,198 
Sub-advisory expense65 68 71 78 82 83 81 75 282 321 
Employee compensation and benefits29 27 31 36 32 31 33 37 123 133 
Distribution and service72 75 81 87 93 94 92 90 315 369 
General, administrative and other29 25 24 28 25 27 25 25 106 102 
Total expenses 195 195 207 229 232 235 231 227 826 925 
Income before income taxes57 52 44 50 78 70 67 58 203 273 
Income tax expense12 11 10 8 16 14 15 11 41 56 
Net income45 41 34 42 62 56 52 47 162 217 
Adjustments to reconcile net income to core earnings:
Net realized losses (gains), excluded from core earnings, before tax(7)9 13 9 (3)3 (2)(2)24 (4)
Income tax expense (benefit) [1]1 (3)(3)(1)1 (1)1 — (6)1 
Core earnings$39 $47 $44 $50 $60 $58 $51 $45 $180 $214 
Daily average Hartford Funds AUM$124,087 $129,782 $136,841 $150,131 $156,533 $155,041 $150,527 $143,164 $135,124 $151,347 
Return on assets (bps, net of tax) [2]
Net income14.5 12.6 9.9 11.2 15.8 14.4 13.8 13.1 12.0 14.3 
Core earnings*12.6 14.5 12.9 13.3 15.3 15.0 13.6 12.6 13.3 14.1 
ROE
Net income available to common stockholders [3]42.4 %48.2 %51.9 %58.0 %57.8 %56.9 %54.3 %52.9 %
Adjustments to reconcile net income available to common stockholders to core earnings:
Net realized losses (gains) excluded from core earnings, before tax6.5 %7.8 %6.0 %2.0 %(1.1 %)(2.0 %)(4.3 %)(6.3 %)
Income tax expense (benefit) [1](1.6 %)(1.7 %)(1.1 %)— %0.3 %0.3 %0.9 %1.2 %
Impact of AOCI, excluded from core earnings ROE(1.2 %)(1.5 %)(0.9 %)(0.6 %)0.4 %0.4 %0.3 %(0.2 %)
Core earnings [3]46.1 %52.8 %55.9 %59.4 %57.4 %55.6 %51.2 %47.6 %
[1]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.
[2]Represents annualized earnings divided by daily average assets under management ("AUM"), as measured in basis points ("bps") which represents one hundredth of one percent.
[3]Net income ROE and core earnings ROE are calculated by allocating a portion of debt, interest expense, preferred stock and preferred stock dividends accounted for within Corporate to Hartford Funds.


23
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
HARTFORD FUNDS
ASSET VALUE ROLLFORWARD
ASSETS UNDER MANAGEMENT BY ASSET CLASS
THREE MONTHS ENDEDYEAR ENDED
 Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
Equity Funds
Beginning balance $69,128 $74,891 $89,282 $95,703 $91,600 $93,448 $87,456 $82,123 $95,703 $82,123 
Sales4,200 4,257 5,631 6,856 4,840 4,757 5,927 6,202 20,944 21,726 
Redemptions(6,505)(5,178)(6,795)(6,965)(4,938)(5,076)(4,461)(5,191)(25,443)(19,666)
Net flows(2,305)(921)(1,164)(109)(98)(319)1,466 1,011 (4,499)2,060 
Change in market value and other 6,959 (4,842)(13,227)(6,312)4,201 (1,529)4,526 4,322 (17,422)11,520 
Ending balance$73,782 $69,128 $74,891 $89,282 $95,703 $91,600 $93,448 $87,456 $73,782 $95,703 
Fixed Income Funds
Beginning balance $16,018 $17,388 $18,889 $20,113 $19,632 $18,913 $17,705 $17,034 $20,113 $17,034 
Sales1,852 1,084 1,736 1,900 1,965 1,708 2,098 2,258 6,572 8,029 
Redemptions(2,471)(2,071)(2,306)(2,254)(1,498)(996)(1,121)(1,486)(9,102)(5,101)
Net flows(619)(987)(570)(354)467 712 977 772 (2,530)2,928 
Change in market value and other 462 (383)(931)(870)14 7 231 (101)(1,722)151 
Ending balance$15,861 $16,018 $17,388 $18,889 $20,113 $19,632 $18,913 $17,705 $15,861 $20,113 
Multi-Strategy Investments Funds [1]
Beginning balance$19,028 $20,362 $22,603 $23,610 $22,925 $23,039 $22,170 $22,645 $23,610 $22,645 
Sales530 467 598 722 656 621 629 738 2,317 2,644 
Redemptions(959)(810)(841)(826)(711)(706)(718)(1,751)(3,436)(3,886)
Net flows(429)(343)(243)(104)(55)(85)(89)(1,013)(1,119)(1,242)
Change in market value and other 1,376 (991)(1,998)(903)740 (29)958 538 (2,516)2,207 
Ending balance$19,975 $19,028 $20,362 $22,603 $23,610 $22,925 $23,039 $22,170 $19,975 $23,610 
Exchange-Traded Funds ("ETF") AUM
Beginning balance$2,590 $2,765 $3,211 $3,206 $3,129 $3,111 $2,923 $2,825 $3,206 $2,825 
Net flows60 28 (34)143 44 (13)86 4 197 121 
Change in market value and other204 (203)(412)(138)33 31 102 94 (549)260 
Ending balance$2,854 $2,590 $2,765 $3,211 $3,206 $3,129 $3,111 $2,923 $2,854 $3,206 
Mutual Fund and ETF AUM
Beginning balance$106,764 $115,406 $133,985 $142,632 $137,286 $138,511 $130,254 $124,627 $142,632 $124,627 
Sales - mutual fund6,582 5,808 7,965 9,478 7,461 7,086 8,654 9,198 29,833 32,399 
Redemptions - mutual fund(9,935)(8,059)(9,942)(10,045)(7,147)(6,778)(6,300)(8,428)(37,981)(28,653)
Net flows - ETF60 28 (34)143 44 (13)86 4 197 121 
Net flows - mutual fund and ETF(3,293)(2,223)(2,011)(424)358 295 2,440 774 (7,951)3,867 
Change in market value and other 9,001 (6,419)(16,568)(8,223)4,988 (1,520)5,817 4,853 (22,209)14,138 
Ending balance
112,472 106,764 115,406 133,985 142,632 137,286 138,511 130,254 112,472 142,632 
Talcott Resolution life and annuity separate account AUM [2]11,635 11,063 11,992 14,061 15,263 14,800 15,282 14,944 11,635 15,263 
Hartford Funds AUM$124,107 $117,827 $127,398 $148,046 $157,895 $152,086 $153,793 $145,198 $124,107 $157,895 
[1]Includes balanced, allocation, and alternative investment products.
[2]Represents AUM of the life and annuity business sold in May 2018 that is still managed by the Company's Hartford Funds segment.
24

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
CORPORATE
INCOME STATEMENTS 
 THREE MONTHS ENDEDYEAR ENDED
 Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
Fee income [1]$12 $11 $13 $13 $12 $12 $14 $12 $49 $50 
Other revenue (loss) [2]— — — 1 — — (2)(8)1 (10)
Net investment income13 7 3 3 16 2 3 3 26 24 
Net realized gains (losses)11 (10)(30)(16)3 3 61 6 (45)73 
Total revenues (losses)36 8 (14)1 31 17 76 13 31 137 
Benefits, losses and loss adjustment expenses [3]3 2 2 2 3 1 2 1 9 7 
Insurance operating costs and other expenses [1][4]13 12 23 13 15 17 45 13 61 90 
Interest expense50 50 51 62 62 58 57 57 213 234 
Restructuring and other costs3 3 2 5 2 (12)— 11 13 1 
Total expenses69 67 78 82 82 64 104 82 296 332 
Loss before income taxes(33)(59)(92)(81)(51)(47)(28)(69)(265)(195)
Income tax benefit(11)(15)(21)(22)(14)(15)(7)(11)(69)(47)
Net loss(22)(44)(71)(59)(37)(32)(21)(58)(196)(148)
Preferred stock dividends5 6 5 5 5 6 5 5 21 21 
Net loss available to common stockholders(27)(50)(76)(64)(42)(38)(26)(63)(217)(169)
Adjustments to reconcile net loss available to common stockholders to core loss:
Net realized losses (gains), excluded from core earnings, before tax(10)10 31 15 — (2)(62)(6)46 (70)
Integration and other non-recurring M&A costs, before tax [5]— — — — — 2 30 — — 32 
Restructuring and other costs, before tax3 3 2 5 2 (12)— 11 13 1 
Loss on extinguishment of debt, before tax— — 9 — — — — — 9 — 
Income tax expense (benefit) [6]1 (1)(9)(4)(1)3 6 (2)(13)6 
Core loss$(33)$(38)$(43)$(48)$(41)$(47)$(52)$(60)$(162)$(200)
[1]Includes investment management fees and expenses related to managing third party business, including management of a portion of the invested assets of Talcott Resolution.
[2]The year ended December 31, 2021 included $11 of loss before tax from the Company's former retained 9.7% equity interest in Hopmeadow Holdings LP, the limited partnership that acquired Talcott Resolution in May 2018 (collectively referred to as "Talcott Resolution"). The Company sold its retained equity interest on June 30, 2021.
[3]Includes benefits, losses and loss adjustment expenses for run-off structured settlement and terminal funding agreement liabilities.
[4]The twelve months ended December 31, 2022 includes a $9 loss on extinguishment of debt related to The Hartford's redemption of its 7.875% junior subordinated loans on April 15, 2022.
[5]See note [2] on page 2 for explanation of the integration and other non-recurring M&A costs in the three months ended June 30, 2021.
[6]Represents federal income tax expense (benefit) related to before tax items not included in core earnings.
25

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTMENT INCOME BEFORE TAX
CONSOLIDATED
 THREE MONTHS ENDEDYEAR ENDED
 Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
Net Investment Income (Loss)
Fixed maturities [1]
Taxable$365 $323 $290 $275 $270 $269 $273 $279 $1,253 $1,091 
Tax-exempt51 53 56 56 60 63 65 70 216 258 
Total fixed maturities416 376 346 331 330 332 338 349 1,469 1,349 
Equity securities17 15 13 12 30 23 10 10 57 73 
Mortgage loans55 53 53 50 48 45 45 43 211 181 
Limited partnerships and other alternative investments [2]169 62 158 126 170 259 191 112 515 732 
Other [3]4 (1)(7)9 15 11 18 14 5 58 
Subtotal661 505 563 528 593 670 602 528 2,257 2,393 
Investment expense(21)(18)(22)(19)(20)(20)(21)(19)(80)(80)
Total net investment income$640 $487 $541 $509 $573 $650 $581 $509 $2,177 $2,313 
Annualized investment yield, before tax [4]4.6 %3.5 %3.9 %3.6 %4.1 %4.8 %4.4 %3.8 %3.9 %4.3 %
Annualized limited partnerships and other alternative investment yield, before tax [4]16.8 %6.3 %17.3 %14.6 %22.1 %39.6 %32.5 %21.1 %14.4 %31.8 %
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]*3.7 %3.3 %3.0 %2.9 %3.1 %3.0 %3.1 %3.1 %3.2 %3.1 %
Annualized investment yield, net of tax [4]3.7 %2.8 %3.2 %2.9 %3.4 %3.9 %3.6 %3.1 %3.2 %3.5 %
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]*3.0 %2.7 %2.4 %2.4 %2.5 %2.5 %2.5 %2.6 %2.6 %2.5 %
Average reinvestment rate [5]6.0 %4.9 %4.5 %3.3 %2.9 %2.6 %2.5 %2.3 %4.4 %2.6 %
Average sales/maturities yield [6]4.2 %3.7 %3.6 %3.0 %3.3 %3.1 %2.9 %2.9 %3.6 %3.0 %
Portfolio duration (in years) [7]4.0 4.0 4.3 4.4 4.3 4.5 4.6 4.8 4.0 4.3 
[1]Includes income on short-term investments.
[2]Other alternative investments include an insurer-owned life insurance policy, which is primarily invested in private equity, fixed income, hedge funds and public equity.
[3]Includes changes in fair value of certain equity fund investments and income from derivatives that qualify for hedge accounting and are used to hedge fixed maturities.
[4]Represents annualized net investment income divided by the monthly average invested assets at amortized cost as applicable, excluding repurchase agreements and derivatives book value.
[5]Represents the annualized yield on fixed maturities and mortgage loans that were purchased during the respective period. Excludes U.S. Treasury securities and repurchase agreement and securities lending collateral, if any.
[6]Represents the annualized yield on fixed maturities and mortgage loans that were sold, matured, or redeemed, including calls and paydowns, during the respective period. Excludes U.S. Treasury securities, cash equivalent securities, and repurchase agreement collateral.
[7]Excludes certain short-term investments.
26
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTMENT INCOME BEFORE TAX
PROPERTY & CASUALTY
 THREE MONTHS ENDEDYEAR ENDED
 Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
Net Investment Income (Loss)
Fixed maturities [1]
Taxable$276 $243 $219 $207 $202 $200 $203 $207 $945 $812 
Tax-exempt38 40 43 41 44 47 49 52 162 192 
Total fixed maturities314 283 262 248 246 247 252 259 1,107 1,004 
Equity securities9 10 10 9 11 18 8 7 38 44 
Mortgage loans39 38 38 36 35 31 32 30 151 128 
Limited partnerships and other alternative investments [2]119 44 123 97 137 198 151 84 383 570 
Other [3]4 (2)(9)6 13 8 15 12 (1)48 
Subtotal485 373 424 396 442 502 458 392 1,678 1,794 
Investment expense(16)(13)(17)(14)(15)(15)(16)(14)(60)(60)
Total net investment income$469 $360 $407 $382 $427 $487 $442 $378 $1,618 $1,734 
Annualized investment yield, before tax [4]4.4 %3.4 %3.9 %3.7 %4.2 %4.8 %4.5 %3.9 %3.9 %4.4 %
Annualized limited partnerships and other alternative investment yield, before tax [4]14.8 %5.7 %16.7 %14.1 %22.0 %37.3 %31.4 %19.2 %13.4 %30.2 %
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]3.6 %3.3 %2.9 %2.9 %3.0 %3.0 %3.1 %3.2 %3.2 %3.1 %
Annualized investment yield, net of tax [4]3.6 %2.7 %3.1 %3.0 %3.4 %4.0 %3.7 %3.2 %3.1 %3.6 %
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]2.9 %2.6 %2.4 %2.4 %2.5 %2.5 %2.6 %2.6 %2.6 %2.5 %
Average reinvestment rate [5]6.1 %4.9 %4.4 %3.2 %2.8 %2.6 %2.5 %2.3 %4.4 %2.6 %
Average sales/maturities yield [6]4.1 %3.7 %3.6 %2.9 %3.1 %3.0 %2.9 %2.8 %3.5 %3.0 %
Portfolio duration (in years) [7]3.8 3.9 4.2 4.3 4.3 4.5 4.5 4.7 3.8 4.3 
Footnotes [1] through [7] are explained on page 26.
27
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTMENT INCOME BEFORE TAX
GROUP BENEFITS
 THREE MONTHS ENDEDYEAR ENDED
 Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
Net Investment Income (Loss)
Fixed maturities [1]
Taxable$79 $75 $69 $67 $67 $69 $69 $71 $290 $276 
Tax-exempt12 11 12 13 14 14 15 16 48 59 
Total fixed maturities91 86 81 80 81 83 84 87 338 335 
Equity securities2 3 2 2 3 4 1 2 9 10 
Mortgage loans16 15 15 14 13 14 13 13 60 53 
Limited partnerships and other alternative investments [2]50 18 35 29 33 61 40 28 132 162 
Other [3]— — 2 3 3 2 3 2 5 10 
Subtotal159 122 135 128 133 164 141 132 544 570 
Investment expense(5)(5)(5)(5)(5)(5)(5)(5)(20)(20)
Total net investment income$154 $117 $130 $123 $128 $159 $136 $127 $524 $550 
Annualized investment yield, before tax [4]5.3 %4.0 %4.4 %4.2 %4.4 %5.4 %4.7 %4.4 %4.5 %4.7 %
Annualized limited partnerships and other alternative investment yield, before tax [4]24.5 %8.7 %19.4 %16.7 %22.3 %49.7 %37.1 %29.8 %18.5 %38.7 %
Annualized investment yield, before tax, excluding limited partnership and other alternative investments [4]3.8 %3.6 %3.4 %3.4 %3.4 %3.5 %3.5 %3.5 %3.6 %3.5 %
Annualized investment yield, net of tax [4]4.2 %3.2 %3.6 %3.4 %3.5 %4.4 %3.8 %3.5 %3.6 %3.8 %
Annualized investment yield, net of tax, excluding limited partnership and other alternative investments [4]3.1 %2.9 %2.8 %2.8 %2.8 %2.8 %2.8 %2.9 %2.9 %2.8 %
Average reinvestment rate [5]5.9 %4.8 %4.7 %3.6 %3.1 %2.9 %2.7 %2.8 %4.6 %2.9 %
Average sales/maturities yield [6]4.3 %4.0 %3.8 %3.3 %3.7 %3.5 %3.4 %3.3 %3.8 %3.5 %
Portfolio duration (in years) [7]4.8 4.8 5.0 5.2 5.4 5.6 5.7 5.8 4.8 5.4 
Footnotes [1] through [7] are explained on page 26.
28
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
NET INVESTMENT INCOME
CONSOLIDATED
THREE MONTHS ENDEDYEAR ENDED
Net Investment Income by SegmentDec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
Net Investment Income
Commercial Lines$411 $315 $356 $333 $372 $421 $382 $327 $1,415 $1,502 
Personal Lines41 31 35 33 38 44 40 35 140 157 
P&C Other Operations17 14 16 16 17 22 20 16 63 75 
Total Property & Casualty469 360 407 382 427 487 442 378 1,618 1,734 
Group Benefits154 117 130 123 128 159 136 127 524 550 
Hartford Funds4 3 1 1 2 2 — 1 9 5 
Corporate13 7 3 3 16 2 3 3 26 24 
Total net investment income by segment$640 $487 $541 $509 $573 $650 $581 $509 $2,177 $2,313 
THREE MONTHS ENDEDYEAR ENDED
Net Investment Income From Limited Partnerships and Other Alternative InvestmentsDec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
Total Property & Casualty$119 $44 $123 $97 $137 $198 $151 $84 $383 $570 
Group Benefits50 18 35 29 33 61 40 28 132 162 
Total net investment income from limited partnerships and other alternative investments [1]$169 $62 $158 $126 $170 $259 $191 $112 $515 $732 
[1]Amounts are included above in total net investment income by segment.

29
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMPONENTS OF NET REALIZED GAINS (LOSSES)
CONSOLIDATED
THREE MONTHS ENDEDYEAR ENDED
Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
Net Realized Gains (Losses)
Gross gains on sales of fixed maturities
$3 $16 $15 $23 $157 $63 $68 $31 $57 $319 
Gross losses on sales of fixed maturities
(59)(81)(80)(95)(35)(8)(15)(31)(315)(89)
Equity securities [1]101 (81)(262)(107)93 3 88 43 (349)227 
Net credit losses on fixed maturities, AFS(3)(3)— (12)— — — 4 (18)4 
Change in ACL on mortgage loans— — (5)(2)(3)(2)10 4 (7)9 
Intent-to-sell impairments(1)(2)— (3)— — — — (6)— 
Other net gains (losses) [2](19)(15)(6)51 — 14 (4)29 11 39 
Total net realized gains (losses)22 (166)(338)(145)212 70 147 80 (627)509 
Net realized losses (gains), included in core earnings, before tax— — 2 (1)— (2)1 (3)1 (4)
 Total net gains (losses) excluded from core earnings, before tax22 (166)(336)(146)212 68 148 77 (626)505 
Income tax benefit (expense) related to net realized gains (losses) excluded from core earnings4 34 73 29 (46)(14)(32)(15)140 (107)
 Total net realized gains (losses) excluded from core earnings, after tax$26 $(132)$(263)$(117)$166 $54 $116 $62 $(486)$398 
[1]Includes all changes in fair value and trading gains and losses for equity securities.
[2]Includes changes in value of fair value option securities and non-qualifying derivatives, including credit derivatives, interest rate derivatives used to manage duration, equity derivatives, and commodity derivatives. Also includes periodic net coupon settlements on credit derivatives, which are included in core earnings, as well as transactional foreign currency revaluation.
30
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
COMPOSITION OF INVESTED ASSETS
CONSOLIDATED
Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021
 Amount [1]PercentAmountPercentAmountPercentAmountPercentAmount [1]Percent
Total investments$52,560 100.0 %$50,661 100.0 %$52,392 100.0 %$55,951 100.0 %$57,749 100.0 %
Asset-backed securities$1,941 5.4 %$1,892 5.3 %$1,342 3.6 %$942 2.4 %$1,135 2.7 %
Collateralized loan obligations2,941 8.1 %2,919 8.2 %2,890 7.6 %2,971 7.4 %3,025 7.1 %
Commercial mortgage-backed securities3,368 9.3 %3,278 9.2 %3,398 8.9 %3,722 9.3 %4,119 9.6 %
Corporate15,233 42.0 %14,888 41.7 %16,151 42.8 %17,618 43.8 %18,707 43.6 %
Foreign government/government agencies547 1.5 %584 1.6 %661 1.7 %784 1.9 %910 2.1 %
Municipal6,296 17.4 %6,197 17.3 %7,067 18.6 %7,594 18.8 %8,257 19.3 %
Residential mortgage-backed securities3,708 10.2 %3,724 10.4 %3,929 10.3 %3,936 9.8 %3,643 8.5 %
U.S. Treasuries2,197 6.1 %2,235 6.3 %2,449 6.5 %2,666 6.6 %3,051 7.1 %
Total fixed maturities, AFS [2]$36,231 100.0 %$35,717 100.0 %$37,887 100.0 %$40,233 100.0 %$42,847 100.0 %
U.S. government/government agencies$5,025 13.9 %$5,018 14.0 %$5,326 14.0 %$5,426 13.5 %$5,881 13.7 %
AAA5,824 16.1 %5,675 15.9 %5,576 14.7 %5,728 14.2 %6,133 14.3 %
AA6,650 18.4 %6,465 18.1 %6,847 18.1 %7,324 18.2 %7,718 18.0 %
A8,968 24.7 %8,972 25.1 %9,660 25.5 %10,300 25.6 %10,962 25.6 %
BBB7,973 22.0 %7,732 21.7 %8,514 22.5 %9,060 22.5 %9,708 22.7 %
BB1,235 3.4 %1,333 3.8 %1,383 3.7 %1,799 4.5 %1,811 4.2 %
B535 1.5 %490 1.4 %548 1.4 %560 1.4 %599 1.4 %
CCC19 — %16 — %22 0.1 %27 0.1 %30 0.1 %
CC & below2 — %16 — %11 — %9 — %5 — %
Total fixed maturities, AFS [2]$36,231 100.0 %$35,717 100.0 %$37,887 100.0 %$40,233 100.0 %$42,847 100.0 %
[1]Amount represents the value at which the assets are presented in the Consolidating Balance Sheets (page 4).
[2]Fixed maturities, at fair value using the fair value option are not included.
31
THE HARTFORD FINANCIAL SERVICES GROUP, INC.
INVESTED ASSET EXPOSURES
DECEMBER 31, 2022
Cost or
Amortized Cost		Fair ValuePercent of Total
Invested Assets
Top Ten Corporate Fixed Maturity, AFS and Equity Exposures by Sector
Financial services$5,527 $5,094 9.7 %
Technology and communications2,582 2,340 4.5 %
Consumer non-cyclical2,338 2,156 4.1 %
Utilities1,918 1,709 3.2 %
Capital goods1,466 1,351 2.6 %
Consumer cyclical1,186 1,089 2.1 %
Energy1,161 1,072 2.0 %
Basic industry832 769 1.5 %
Transportation731 651 1.2 %
Other854 803 1.5 %
Total$18,595 $17,034 32.4 %
Top Ten Exposures by Issuer [1]
Toronto Dominion Bank$206 $191 0.4 %
Morgan Stanley195 178 0.3 %
Mitsubishi UFJ Financial Group179 174 0.3 %
Penske Corporation171 166 0.3 %
Goldman Sachs Group Inc.176 151 0.3 %
Government of Canada152 145 0.3 %
JPMorgan Chase & Company168 144 0.3 %
Hyundai Motor Company162 143 0.3 %
Walmart Inc.145 141 0.3 %
Westpac Banking Corporation152 137 0.2 %
Total$1,706 $1,570 3.0 %
[1]Includes corporate bonds, municipal bonds, bonds issued by foreign government/government agencies, and equity securities excluding exchange-traded mutual funds.
32

THE HARTFORD FINANCIAL SERVICES GROUP, INC.
APPENDIX
BASIS OF PRESENTATION AND DEFINITIONS
All amounts are in millions, except for per share and ratio information, unless otherwise stated. Amounts presented throughout this document have been rounded for presentation purposes.
The Hartford Financial Services Group, Inc. (the "Company", "we", or "our") currently conducts business principally in five reporting segments: Commercial Lines, Personal Lines, Property & Casualty Other Operations ("P&C Other Operations"), Group Benefits and Hartford Funds, as well as a Corporate category.
Property & Casualty ("P&C") businesses consist of three reporting segments: Commercial Lines, Personal Lines and P&C Other Operations. Commercial Lines provides workers’ compensation, property, automobile, general liability, umbrella, professional liability, bond, marine, livestock and accident and health reinsurance to businesses in the United States ("U.S.") and internationally. Commercial Lines generally consists of products written for small businesses, middle market companies as well as national and multi-national accounts, largely distributed through retail agents and brokers, wholesale agents and global and specialty reinsurance brokers. Small commercial and middle market lines within middle & large commercial are generally referred to as standard commercial lines. Global specialty provides a variety of customized insurance products, including reinsurance. Personal Lines provides automobile, homeowners and personal umbrella coverages to individuals across the U.S., including a special program designed exclusively for members of AARP. P&C Other Operations includes certain property and casualty operations, managed by the Company, that have discontinued writing new business and represent approximately 95% of the Company's asbestos and environmental exposures, before considering losses ceded to the A&E ADC.
Group Benefits provides group life, accident and disability coverage, group retiree health and voluntary benefits to individual members of employer groups and associations. Group Benefits offers disability underwriting, administration, claims processing and reinsurance to other insurers and self-funded employer plans.
Hartford Funds provides investment management, administration, distribution and related services to investors through investment products in domestic markets. Mutual fund and exchange-traded funds are sold primarily through retail, bank trust and registered investment advisor channels.
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 of a portion of the invested assets of Talcott Resolution Life, Inc. and its subsidiaries as well as certain of Talcott's affiliates. In addition, up until June 30, 2021 when the investment was sold, Corporate included a 9.7% ownership interest in Hopmeadow Holdings, LP, the legal entity that acquired the life and annuity business in May 2018 (Hopmeadow Holdings, LP, Talcott Resolution Life Inc., and its subsidiaries are collectively referred to as "Talcott Resolution").
Certain operating and statistical measures for P&C Commercial Lines and Personal Lines have been incorporated herein to provide supplemental data that indicates current trends in the Company's business. These measures include net new business premium, gross new business premium, renewal written price increases, policy count retention, and policies in-force.
•Net new business premium represents the amount of premiums charged, after ceded reinsurance, for policies issued to customers who were not insured with the Company in the previous policy term. Net new business premium plus renewal written premium equals total written premium.
•Gross new business premium represents the amount of premiums charged, before ceded reinsurance, for policies issued to customers who were not insured with the Company in the previous policy term. Gross new business premium plus gross renewal written premium less ceded reinsurance equals total written premium. For global specialty, gross new business premium is used by management, as it is thought to be more indicative of new business growth trends, in part because global specialty includes the Global Re assumed reinsurance book of business.
•Renewal written price increases for Commercial Lines represent the combined effect of rate changes and individual risk pricing decisions per unit of exposure since the prior year on policies that renewed and includes amount of insurance, which is a component of change in exposure and offsets increases in loss cost trends due to inflation. For Personal Lines, renewal written price increases represent the total change in premium per policy since the prior year on those policies that renewed and includes the combined effect of rate changes, amount of insurance and other changes in exposure. For Personal Lines, other changes in exposure include, but are not limited to, the effect of changes in number of drivers, vehicles and incidents, as well as changes in customer policy elections, such as deductibles and limits.
•Policy count retention represents the ratio of the number of renewal policies issued during the current year period divided by the number of policies issued in the previous calendar period before considering policies cancelled subsequent to renewal.
The Company, along with others in the property and casualty insurance industry, uses underwriting ratios as measures of performance. The loss and loss adjustment expense ratio is the ratio of losses and loss adjustment expenses to earned premiums. The expense ratio is the ratio of underwriting expenses less fee income to earned premiums. Underwriting expenses included in the expense ratio consist of amortization of deferred policy acquisition costs and insurance operating costs and expenses, including certain centralized services and bad debt expense, but excluding integration and other non-recurring M&A costs. The policyholder dividend ratio is the ratio of policyholder dividends to earned premiums. The combined ratio is the sum of the loss and loss adjustment expense ratio, the expense ratio and the policyholder dividend ratio. These ratios are relative measurements that describe the related cost of losses, expenses and policyholder dividends for every $100 of earned premiums. A combined ratio below 100 demonstrates underwriting profit; a combined ratio above 100 demonstrates underwriting losses. The current accident year catastrophe ratio (a component of the loss ratio) represents the ratio of catastrophe losses and loss adjustment expenses incurred in the current accident year to earned premiums. The prior accident year loss and loss adjustment expense ratio (a component of the loss ratio) represents the increase (decrease) in the estimated cost of settling catastrophe and non-catastrophe claims incurred in prior accident years as recorded in the current calendar year divided by earned premiums.
A catastrophe is a severe loss, resulting from natural or man-made events, including risks such as fire, earthquake, windstorm, explosion, terrorist attack, civil unrest and similar events. Each catastrophe has unique characteristics and the events are unpredictable as to timing or loss amount. Catastrophe losses are not included in either earnings or in losses and loss adjustment expense reserves prior to occurrence of the catastrophe event. The Company believes that a discussion of the effect of catastrophes is meaningful for investors to understand the variability of periodic earnings. For U.S. events, 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. For international events, the Company's approach is similar, informed, in part, by how Lloyd's of London defines major losses and, consistent with that definition, incurred losses arising from the Ukraine conflict have been accounted for as catastrophe losses. The Company does not treat incurred benefits and losses arising from the COVID-19 pandemic as catastrophe losses.
The Company, along with others in the insurance industry, use loss and expense ratios as measures of the Group Benefits segment's performance. The loss ratio is the ratio of benefits, losses and loss adjustment expenses, excluding those related to buyout premiums, to premiums and other considerations, excluding buyout premiums. The expense ratio is the ratio of insurance operating costs and other expenses (excluding integration and other non-recurring M&A costs) to premiums and other considerations, excluding buyout premiums. Buyout premiums represent takeover of open claim liabilities and other non-recurring premium amounts.
The Hartford Funds segment provides supplemental data on sales, redemptions, net flows and account value that indicate current trends in that segment.
33

DISCUSSION OF NON-GAAP AND OTHER FINANCIAL MEASURES
The Company uses non-GAAP and other financial measures in this Investor Financial Supplement to assist investors in analyzing the Company's operating performance. Because the Company's calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing the Company's non-GAAP and other financial measures to those of other companies. Non-GAAP measures are indicated with an asterisk the first time they appear in this document.
Core earnings- The Hartford uses the non-GAAP measure core earnings as an important measure of the Company’s operating performance. The Hartford believes that core earnings provides investors with a valuable measure of the performance of the Company’s ongoing businesses because it reveals trends in our insurance and financial services businesses that may be obscured by including the net effect of certain items. Therefore, the following items are excluded from core earnings:
•Certain realized gains and losses - Generally realized 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 highly variable from period to period based on capital market conditions. The Hartford believes, however, that some realized 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.
•Restructuring and other costs - Costs incurred as part of a restructuring plan are not a recurring operating expense of the business.
•Loss on extinguishment of debt - Largely consisting of make-whole payments or tender premiums upon paying debt off before maturity, these losses are not a recurring operating expense of the business.
•Gains and losses on reinsurance transactions - Gains or losses on reinsurance, such as those entered into upon sale of a business or to reinsure loss reserves, are not a recurring operating expense of the business.
•Integration and other non-recurring M&A costs - These costs, including transaction costs incurred in connection with an acquired business, are incurred over a short period of time and do not represent an ongoing operating expense of the business.
•Change in loss reserves upon acquisition of a business - These changes in loss reserves are excluded from core earnings because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition.
•Deferred gain resulting from retroactive reinsurance and subsequent changes in the deferred gain - Retroactive reinsurance agreements economically transfer risk to the reinsurers and excluding the deferred gain on retroactive reinsurance and related amortization of the deferred gain from core earnings provides greater insight into the economics of the business.
•Change in valuation allowance on deferred taxes related to non-core components of before tax income - These changes in valuation allowances are excluded from core earnings because they relate to non-core components of before tax income, such as tax attributes like capital loss carryforwards.
•Results of discontinued operations - These results are excluded from core earnings for businesses sold or held for sale because such results could obscure the ability to compare period over period results for our ongoing businesses.
In addition to the above components of net income available to common stockholders that are excluded from core earnings, preferred stock dividends declared, which are excluded from net income available to common stockholders, are included in the determination of core earnings. Preferred stock dividends are a cost of financing more akin to interest expense on debt and are expected to be a recurring expense as long as the preferred stock is outstanding.
Net income (loss) and net income (loss) available to common stockholders are the most directly comparable U.S. GAAP measures to core earnings. Core earnings should not be considered as a substitute for net income (loss) or net income (loss) available to common stockholders and does not reflect the overall profitability of the Company’s business. Therefore, The Hartford believes that it is useful for investors to evaluate net income (loss), net income (loss) available to common stockholders, and core earnings when reviewing the Company’s performance. A reconciliation of net income (loss) available to common stockholders to core earnings is set forth on page 2.
Core earnings per share-This is a non-GAAP per share measure calculated using the non-GAAP financial measure core earnings rather than the GAAP measure net income. The Company believes that core earnings per share provides investors with a valuable measure of the Company's operating performance for the same reasons applicable to its underlying measure, core earnings. Net income (loss) available to common stockholders per share is the most directly comparable U.S. GAAP measure. Core earnings per share should not be considered as a substitute for net income (loss) available to common stockholders per share and does not reflect the overall profitability of the Company's business. Therefore, the Company believes that it is useful for investors to evaluate net income (loss) available to common stockholders per share and core earnings per share when reviewing our performance. A reconciliation of net income (loss) available to common stockholders per share to core earnings per share is set forth below.
34
BASIC EARNINGS PER SHARE
THREE MONTHS ENDEDYEAR ENDED
Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
Net Income available to common stockholders per share
$1.84 $1.03 $1.33 $1.32 $2.14 $1.38 $2.54 $0.68 $5.52 $6.71 
Adjustments made to reconcile net income available to common stockholders per share to core earnings per share:
Net realized losses (gains), excluded from core earnings, before tax
(0.07)0.52 1.03 0.44 (0.63)(0.20)(0.42)(0.21)1.93 (1.45)
Restructuring and other costs, before tax0.01 0.01 0.01 0.02 0.01 (0.03)— 0.03 0.04 — 
Loss on extinguishment of debt, before tax— — 0.03 — — — — — 0.03 — 
Integration and other non-recurring M&A costs, before tax
0.02 0.02 0.02 0.02 0.01 0.02 0.10 0.03 0.06 0.17 
Change in deferred gain on retroactive reinsurance, before tax
0.72 — — — 0.51 0.08 0.11 0.02 0.71 0.70 
Income tax expense (benefit) on items excluded from core earnings
(0.17)(0.12)(0.24)(0.11)0.02 0.03 0.03 0.02 (0.62)0.11 
Core earnings per share$2.35 $1.46 $2.18 $1.69 $2.06 $1.28 $2.36 $0.57 $7.67 $6.24 
Core earnings per diluted share-This non-GAAP per share measure is calculated using the non-GAAP financial measure core earnings rather than the GAAP measure net income. The Company believes that core earnings per diluted share provides investors with a valuable measure of the Company's operating performance for the same reasons applicable to its underlying measure, core earnings. Net income (loss) available to common stockholders per diluted common share is the most directly comparable GAAP measure. Core earnings per diluted share should not be considered as a substitute for net income (loss) available to common stockholders per diluted common share and does not reflect the overall profitability of the Company's business. Therefore, the Company believes that it is useful for investors to evaluate net income (loss) available to common stockholders per diluted common share and core earnings per diluted share when reviewing the Company's performance. A reconciliation of net income available to common stockholders per diluted share to core earnings per diluted share is set forth below.
DILUTED EARNINGS PER SHARE
THREE MONTHS ENDED
YEAR ENDED
Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
Net Income available to common stockholders per diluted share$1.81 $1.02 $1.32 $1.30 $2.10 $1.36 $2.51 $0.67 $5.44 $6.62 
Adjustments made to reconcile net income available to common stockholders per diluted share to core earnings per diluted share:
Net realized losses (gains), excluded from core earnings, before tax(0.07)0.51 1.01 0.43 (0.61)(0.19)(0.41)(0.21)1.90 (1.43)
Restructuring and other costs, before tax0.01 0.01 0.01 0.01 0.01 (0.03)— 0.03 0.04 — 
Loss on extinguishment of debt, before tax
— — 0.03 — — — — — 0.03 — 
Integration and other non-recurring M&A costs, before tax
0.02 0.02 0.02 0.01 0.01 0.02 0.10 0.02 0.06 0.16 
Change in deferred gain on retroactive reinsurance, before tax
0.71 — — — 0.50 0.08 0.11 0.02 0.69 0.69 
Income tax expense (benefit) on items excluded from core earnings
(0.17)(0.12)(0.24)(0.09)0.01 0.02 0.02 0.03 (0.60)0.11 
Core earnings per diluted share
$2.31 $1.44 $2.15 $1.66 $2.02 $1.26 $2.33 $0.56 $7.56 $6.15 
Book value per diluted share (excluding AOCI)-This is a non-GAAP per share measure that is calculated by dividing (a) common 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 that excluding AOCI from the numerator is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Book value per diluted share is the most directly comparable U.S. GAAP measure. Reconciliations of book value per common share and book value per diluted share to book value per common share, excluding AOCI and book value per diluted share, excluding AOCI, are set forth on page 1.
Core Earnings Return on Equity- The Company provides different measures of the return on stockholders' equity (ROE). Core earnings ROE is calculated based on non-GAAP financial measures. Core earnings ROE is calculated by dividing (a) the non-GAAP measure core earnings for the prior four fiscal quarters by (b) the non-GAAP measure average common stockholders' equity, excluding AOCI. Net income ROE is the most directly comparable U.S. GAAP measure. The Company excludes AOCI in the calculation of core earnings ROE to provide investors with a measure of how effectively the Company is investing the portion of the Company's net worth that is primarily attributable to the Company's business operations. The Company provides to investors return on equity measures based on its non-GAAP core earnings financial measure for the reasons set forth in the core earnings definition. A reconciliation of Net income (loss) ROE to Core earnings ROE is set forth below:



35
 
LAST TWELVE MONTHS ENDED
 
Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021
Net income ROE11.6 %12.8 %13.1 %15.4 %13.1 %12.3 %12.3 %10.5 %
Adjustments to reconcile net income (loss) ROE to core earnings ROE:
Net realized losses (gains), excluded from core earnings, before tax4.1 %2.9 %1.3 %(1.7 %)(2.8 %)(2.3 %)(1.9 %)(1.8)%
Restructuring and other costs, before tax0.1 %0.1 %— %— %— %0.1 %0.7 %0.7 %
Loss on extinguishment of debt, before tax
0.1 %0.1 %0.1 %— %— %— %— %— %
Integration and other non-recurring M&A costs, before tax
0.1 %0.1 %0.2 %0.3 %0.3 %0.4 %0.4 %0.3 %
Change in deferred gain on retroactive reinsurance, before tax1.5 %1.1 %1.3 %1.5 %1.4 %1.6 %1.6 %1.8 %
Income tax expense (benefit) on items not included in core earnings(1.3 %)(0.9 %)(0.6 %)(0.1 %)0.2 %(0.1 %)(0.3 %)(0.3 %)
Impact of AOCI, excluded from denominator of core earnings ROE(1.8 %)(1.9 %)(1.4 %)(0.6 %)0.5 %0.5 %0.3 %(0.3 %)
Core earnings ROE14.4 %14.3 %14.0 %14.8 %12.7 %12.5 %13.1 %10.9 %
Common stockholders' equity, excluding AOCI- This non-GAAP measure is calculated as total stockholders' equity less preferred stock and AOCI. Total stockholders' equity is the most directly comparable GAAP measure. 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 that excluding AOCI is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. A reconciliation of common stockholders' equity, excluding AOCI to its most directly comparable GAAP measure, total stockholders' equity, is set forth on page 4.
Total capitalization, excluding AOCI, net of tax- This non-GAAP measure is calculated as total debt plus total stockholders' equity, excluding the impacts of AOCI included in stockholders’ equity. Total capitalization, including AOCI, net of tax is the most directly comparable GAAP measure. Total debt to capitalization ratio excluding, AOCI is calculated by dividing total debt to total capitalization excluding, AOCI, net of tax. The Company provides this measure to enable investors to analyze the Company’s financial leverage. The Company believes that excluding AOCI is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Reconciliations of capitalization metrics, are set forth on page 5.
Underwriting gain (loss)- The Hartford's management evaluates profitability of the Commercial and Personal Lines segments primarily on the basis of underwriting gain or loss. Underwriting gain (loss) is a before tax non-GAAP measure that represents earned premiums less incurred losses, loss adjustment expenses and underwriting expenses. Net income (loss) is the most directly comparable GAAP measure. Underwriting gain (loss) is influenced significantly by earned premium growth and the adequacy of The Hartford's pricing. Underwriting profitability over time is also greatly influenced by The Hartford's underwriting discipline, as management strives to manage exposure to loss through favorable risk selection and diversification, effective management of claims, use of reinsurance and its ability to manage its expenses. The Hartford believes that underwriting gain (loss) provides investors with a valuable measure of profitability, before tax, derived from underwriting activities, which are managed separately from the Company's investing activities. Reconciliations of net income (loss) to underwriting gain (loss) for the Company's P&C businesses are set forth below.
Underlying underwriting gain (loss)- This non-GAAP measure of underwriting profitability represents underwriting gain (loss) before current accident year catastrophes, PYD and current accident year change in loss reserves upon acquisition of a business. The most directly comparable GAAP measure is net income (loss). The Company believes underlying underwriting gain (loss) is important to understand the Company’s periodic earnings because the volatile and unpredictable nature (i.e., the timing and amount) of catastrophes and prior accident year reserve development could obscure underwriting trends. The changes to loss reserves upon acquisition of a business are also excluded from underlying underwriting gain (loss) because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition as such trends are valuable to our investors' ability to assess the Company's financial performance. Reconciliation of net income (loss) to underlying underwriting gain (loss) for the Company's P&C businesses are set forth below.
36


PROPERTY & CASUALTY
THREE MONTHS ENDEDYEAR ENDED
Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
Net income$426 $256 $375 $468 $662 $430 $704 $251 $1,525 $2,047 
Adjustments to reconcile net income to underlying underwriting gain:
Net investment income(469)(360)(407)(382)(427)(487)(442)(378)(1,618)(1,734)
Net realized losses (gains)(3)110 225 104 (136)(57)(56)(53)436 (302)
Net servicing and other expense (income)(2)(3)(2)2 (3)(2)(6)(2)(5)(13)
Income tax expense 107 76 97 116 160 99 155 55 396 469 
Underwriting gain (loss)59 79 288 308 256 (17)355 (127)734 467 
Current accident year catastrophes135 293 123 98 22 300 128 214 649 664 
Prior accident year development183 (53)(58)(36)29 90 (149)229 36 199 
Underlying underwriting gain$377 $319 $353 $370 $307 $373 $334 $316 $1,419 $1,330 
COMMERCIAL LINES
THREE MONTHS ENDEDYEAR ENDED
Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
Net income$566 $286 $389 $383 $702 $357 $569 $129 $1,624 $1,757 
Adjustments to reconcile net income to underlying underwriting gain:
Net investment income(411)(315)(356)(333)(372)(421)(382)(327)(1,415)(1,502)
Net realized losses (gains)1 95 198 91 (118)(51)(47)(44)385 (260)
Other expense (income)2 3 1 6 1 3 (1)2 12 5 
Income tax expense146 84 101 95 174 82 122 24 426 402 
Underwriting gain (loss)304 153 333 242 387 (30)261 (216)1,032 402 
Current accident year catastrophes114 179 67 81 6 222 93 175 441 496 
Prior accident year development(68)(42)(88)(33)(114)122 (105)238 (231)141 
Underlying underwriting gain$350 $290 $312 $290 $279 $314 $249 $197 $1,242 $1,039 






37

PERSONAL LINES
THREE MONTHS ENDEDYEAR ENDED
Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
Net income (loss)$44 $(36)$6 $77 $81 $51 $118 $135 $91 $385 
Adjustments to reconcile net income (loss) to underlying underwriting gain:
Net investment income(41)(31)(35)(33)(38)(44)(40)(35)(140)(157)
Net realized losses (gains)(3)11 18 9 (12)(4)(6)(7)35 (29)
Net servicing and other expense (income)(4)(6)(3)(4)(5)(5)(5)(4)(17)(19)
Income tax (benefit)11 (10)1 20 19 12 29 35 22 95 
Underwriting gain (loss)7 (72)(13)69 45 10 96 124 (9)275 
Current accident year catastrophes21 114 56 17 16 78 35 39 208 168 
Prior accident year development1 (11)— (3)(31)(27)(44)(42)(13)(144)
Underlying underwriting gain$29 $31 $43 $83 $30 $61 $87 $121 $186 $299 
P&C OTHER OPERATIONS
THREE MONTHS ENDEDYEAR ENDED
Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
Net income (loss)$(184)$6 $(20)$8 $(121)$22 $17 $(13)$(190)$(95)
Adjustments to reconcile net income (loss) to underlying underwriting loss:
Net investment income(17)(14)(16)(16)(17)(22)(20)(16)(63)(75)
Net realized losses (gains)(1)4 9 4 (6)(2)(3)(2)16 (13)
Other expense— — — — 1 — — — — 1 
Income tax expense (benefit)(50)2 (5)1 (33)5 4 (4)(52)(28)
Underwriting gain (loss)(252)(2)(32)(3)(176)3 (2)(35)(289)(210)
Prior accident year development250 — 30 — 174 (5)— 33 280 202 
Underlying underwriting loss$(2)$(2)$(2)$(3)$(2)$(2)$(2)$(2)$(9)$(8)
Underlying combined ratio-This non-GAAP financial measure of underwriting results represents the combined ratio before catastrophes, prior accident year development and current accident year change in loss reserves upon acquisition of a business. Combined ratio is the most directly comparable GAAP measure. The Company believes this ratio is an important measure of the trend in profitability since it removes the impact of volatile and unpredictable catastrophe losses and prior accident year loss and loss adjustment expense reserve development. The changes to loss reserves upon acquisition of a business are excluded from underlying combined ratio because such changes could obscure the ability to compare results in periods after the acquisition to results of periods prior to the acquisition as such trends are valuable to our investors' ability to assess the Company's financial performance. A reconciliation of the combined ratio to the underlying combined ratio for Property & Casualty, Commercial Lines, and Personal Lines is set forth on pages 10, 13 and 17, respectively.
38

Core earnings margin- The Hartford uses the non-GAAP measure core earnings margin to evaluate, and believes it is an important measure of, the Group Benefits segment's operating performance. Core earnings margin is calculated by dividing core earnings by revenues, excluding buyouts and realized gains (losses). Net income margin, calculated by dividing net income by revenues, 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) as well as other items excluded in the calculation of core earnings. Core earnings margin should not be considered as a substitute for net income margin and does not reflect the overall profitability of Group Benefits. Therefore, the Company believes it is important for investors to evaluate both core earnings margin and net income margin when reviewing performance. A reconciliation of net income margin to core earnings margin is set forth below.
THREE MONTHS ENDEDYEAR ENDED
Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
Net income margin8.2 %5.4 %6.6 %(0.4)%2.6 %1.8 %10.7 %0.6 %5.0 %3.9 %
Adjustments to reconcile net income margin to core earnings margin:
Net realized losses (gains), before tax(0.1)%2.3 %4.1 %1.0 %(4.3)%(0.9)%(1.7)%(1.1)%1.8 %(2.0)%
Integration and other non-recurring M&A costs, before tax0.1 %0.1 %0.1 %0.1 %0.1 %0.1 %0.1 %0.1 %0.1 %0.1 %
Income tax expense (benefit)0.1 %(0.6)%(1.0)%(0.2)%0.8 %0.2 %0.4 %0.2 %(0.4)%0.5 %
Core earnings margin8.3 %7.2 %9.8 %0.5 %(0.8)%1.2 %9.5 %(0.2)%6.5 %2.5 %
Return on Assets ("ROA"), Core Earnings- The Company uses this non-GAAP financial measure to evaluate, and believes is an important measure of, the Hartford Funds segment’s operating performance. ROA, core earnings is calculated by dividing annualized 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 Hartford Funds segment because it reveals trends in our business that may be obscured by the effect of items excluded in the calculation of core earnings. ROA, core earnings, should not be considered as a substitute for ROA and does not reflect the overall profitability of our Hartford Funds business. Therefore, the Company believes it is important for investors to evaluate both ROA, and ROA, core earnings when reviewing the Hartford Funds segment performance. A reconciliation of ROA to ROA, core earnings is set forth below.
THREE MONTHS ENDEDYEAR ENDED
Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
Return on Assets ("ROA") 14.5 12.6 9.9 11.2 15.8 14.4 13.8 13.1 12.0 14.3 
Adjustments to reconcile ROA to ROA, core earnings:
Effect of net realized losses (gains), excluded from core earnings, before tax(2.2)2.8 3.9 2.4 (0.8)0.8 (0.5)(0.5)1.7 (0.3)
Effect of income tax expense (benefit)0.3 (0.9)(0.9)(0.3)0.3 (0.2)0.3 — (0.4)0.1 
Return on Assets ("ROA"), core earnings 12.6 14.5 12.9 13.3 15.3 15.0 13.6 12.6 13.3 14.1 












39


Net investment income, excluding limited partnerships and other alternative investments- This non-GAAP measure is the amount of net investment income, on a Consolidated, P&C or Group Benefits level earned from invested assets, excluding the net investment income related to limited partnerships and other alternative investments. The Company believes that net investment income, excluding limited partnerships and other alternative instruments, provides investors with an important measure of the trend in investment earnings because it excludes the impact of the volatility in returns related to limited partnerships and other alternative instruments. Net investment income is the most directly comparable GAAP measure. A reconciliation of net investment income to net investment income, excluding limited partnerships and other alternative investments is set forth below.
CONSOLIDATED
THREE MONTHS ENDEDYEAR ENDED
Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
Total net investment income$640 $487 $541 $509 $573 $650 $581 $509 $2,177 $2,313 
Adjustment for loss (income) from limited partnerships and other alternative investments(169)(62)(158)(126)(170)(259)(191)(112)(515)(732)
Net investment income excluding limited partnerships and other alternative investments$471 $425 $383 $383 $403 $391 $390 $397 $1,662 $1,581 
PROPERTY & CASUALTY
THREE MONTHS ENDEDYEAR ENDED
Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
Total net investment income$469 $360 $407 $382 $427 $487 $442 $378 $1,618 $1,734 
Adjustment for loss (income) from limited partnerships and other alternative investments(119)(44)(123)(97)(137)(198)(151)(84)(383)(570)
Net investment income excluding limited partnerships and other alternative investments$350 $316 $284 $285 $290 $289 $291 $294 $1,235 $1,164 
GROUP BENEFITS
THREE MONTHS ENDEDYEAR ENDED
Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
Total net investment income$154 $117 $130 $123 $128 $159 $136 $127 $524 $550 
Adjustment for loss (income) from limited partnerships and other alternative investments(50)(18)(35)(29)(33)(61)(40)(28)(132)(162)
Net investment income excluding limited partnerships and other alternative investments$104 $99 $95 $94 $95 $98 $96 $99 $392 $388 
40

Annualized investment yield, excluding limited partnerships and other alternative investments-This non-GAAP measure is calculated as (a) the annualized net investment income, on a Consolidated, P&C or Group Benefits level, excluding limited partnerships and other alternative investments, divided by (b) the monthly average invested assets at amortized cost, excluding repurchase agreement and securities lending collateral, derivatives book value, and limited partnerships and other alternative investments. The Company believes that annualized investment yield, excluding limited partnerships and other alternative investments, provides investors with an important measure of the trend in investment earnings because it excludes the impact of the volatility in returns related to limited partnerships and other alternative investments. Annualized investment yield is the most directly comparable GAAP measure. A reconciliation of annualized investment yield to annualized investment yield, excluding limited partnerships and other alternative investments is set forth below.
CONSOLIDATED
THREE MONTHS ENDEDYEAR ENDED
Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
Annualized investment yield4.6 %3.5 %3.9 %3.6 %4.1 %4.8 %4.4 %3.8 %3.9 %4.3 %
Adjustment for loss (income) from limited partnerships and other alternative investments(0.9)%(0.2)%(0.9)%(0.7)%(1.0)%(1.8)%(1.3)%(0.7)%(0.7)%(1.2)%
Annualized investment yield excluding limited partnerships and other alternative investments3.7 %3.3 %3.0 %2.9 %3.1 %3.0 %3.1 %3.1 %3.2 %3.1 %
PROPERTY & CASUALTY
THREE MONTHS ENDEDYEAR ENDED
Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
Annualized investment yield4.4 %3.4 %3.9 %3.7 %4.2 %4.8 %4.5 %3.9 %3.9 %4.4 %
Adjustment for loss (income) from limited partnerships and other alternative investments(0.8)%(0.1)%(1.0)%(0.8)%(1.2)%(1.8)%(1.4)%(0.7)%(0.7)%(1.3)%
Annualized investment yield excluding limited partnerships and other alternative investments3.6 %3.3 %2.9 %2.9 %3.0 %3.0 %3.1 %3.2 %3.2 %3.1 %
GROUP BENEFITS
THREE MONTHS ENDEDYEAR ENDED
Dec 31 2022Sept 30 2022Jun 30 2022Mar 31 2022Dec 31 2021Sept 30 2021Jun 30 2021Mar 31 2021Dec 31 2022Dec 31 2021
Annualized investment yield5.3 %4.0 %4.4 %4.2 %4.4 %5.4 %4.7 %4.4 %4.5 %4.7 %
Adjustment for loss (income) from limited partnerships and other alternative investments(1.5)%(0.4)%(1.0)%(0.8)%(1.0)%(1.9)%(1.2)%(0.9)%(0.9)%(1.2)%
Annualized investment yield excluding limited partnerships and other alternative investments3.8 %3.6 %3.4 %3.4 %3.4 %3.5 %3.5 %3.5 %3.6 %3.5 %
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